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Use your tax refund to pay off debt in 2020.

I used to use my tax refund as regular income, paying bills, buying food, ordering personal items on my wish list. Every year I look back and think how many “windfalls” I’ve squandered and how I could’ve been much better off by now had I put that $1k, $2k, $3k, to better use. So, with it being a new decade and all, I figured why not start off strong and put this windfall of a few hundred dollars towards bettering my financial situation aka paying off debt? 

Your tax refund is just a loan to Uncle Sam anyway at 0% interest. To all of us living paycheck to paycheck, think of your refund as if he helped you save a lump sum to start the new year off right. Why squander it on a late Christmas list?  

This is the decade to finally take control of your finances which is step 1 to taking control of your life (I mean living the life you desire, not overpowering God). 

I’ll say this is not an easy thing to do, allocating 100% of a tax refund to debt repayment. There’s so many things you could be doing with this money instead (upgrade home decor, stuff for kids, extra groceries, car replacement/maintenance)… 

But this could really be the start of a shift in perspective. What if you didn’t rely on your tax refund every year? Heck, the reason tax refunds are even issued is because so many tax filers aren’t making enough money to owe taxes in the first place. So, the goal shouldn’t even be to receive a refund. It should be to earn so much that you complain about the bill like the wealthy do. 

Cheers to the New Decade,

-Aren. 

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2 Comments

  • Reply
    Sharae
    March 20, 2020 at 9:27 pm

    This is what I try to do each year. It’s tempting to spend it, but I need to use it to pay off credit cards

    • Reply
      Aren Lodge
      March 21, 2020 at 2:05 am

      Hi Sharae! Yes, you save a lot in the long run! Thanks for commenting! 🙂

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