It will soon be that time of year, when income tax refund checks begin rolling out. While some unlucky taxpayers end up owing money to the government, quite a few of us are pleasantly surprised with a large amount of cash coming our way. The following are the top three things people consider doing with their money.
The most common reaction to a windfall is to pay off bills. This is always a smart move, as it will help get your finances in better shape for the rest of the year. However, it isn’t a whole lot of fun. It can be a bit depressing to receive a large sum of money, only to turn around and give it to someone else without seeing a dime of it for yourself.
Possibly the best idea for the money is to treat the entire family to luxury family holidays somewhere beautiful and exotic. This is something the entire family can enjoy equally, and it will be good for bonding time as well. Most of us focus so much on the daily grind of work, baseball practice, homework, commuting, housework, and so on that we don’t get very much time to just enjoy being together as a family. Taking a vacation would be a great way to reconnect as a family and remind yourself what’s really important.
The third thing people are often tempted to do with the money is save it in a rainy day fund. Much like paying off bills, this isn’t the most fun plan, but having some security in case of emergency can be fun. Of course, if you find yourself regretting that you didn’t do something more fun with the money, like take a beach vacation, you can always pull the money right back out of savings and book some plane tickets! It is always good to have some financial security but if you change your mind and need the money later it will be waiting for you.
Whatever you do, remember this is your hard earned money and you deserve to spend it in a way that will make you feel satisfied.