Financially Savvy Ways to Use Your Tax Return

From Our Finance Column at Vivala.com

The only good thing about tax time is the potential to get some cold cash in your hand. According to CNN Money, 8 out of 10 U.S. taxpayers get refunds and the average refund in 2015 was $2,893.

Before that money burns a hole in your pocket, take some time to think how you can put that money to work and double it over the next year. Given that your tax refund is the biggest windfall of money you will get all year (it’s sorta like winning the lotto), it’s important you don’t blow it frivolously.

Who doesn’t love to daydream about an extra vacation or buying a new purse but remembering the long-term financial consequences will help bring you back to reality. Instead of thinking about it as a negative, think about it as an investment for living a richer life in the near future. If it helps, break down your return into percentages and give yourself 5 percent of your return to spend on yourself.

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