How Are You Going To Spend Your Tax Return?
People around our office have already started talking about what they are planning to do with their tax returns as soon as it shows up. Most of us are going to take at least part of the cash and pay down some bills or debt we have accrued. In 2019 the average refund came in around $2,725. Which is a nice chunk of change for anyone who wants to pay off debt or do something a little more fun with your tax return.
Here are some of the most common things people plan on doing when they get their tax returns.
1. Put some in a savings account. Around thirty percent of people are planning to save some of the cash just in case of an emergency, which is never a bad idea.
2. Pay off debt that is racked up. Almost twenty-five percent of people say they will be paying down debt with the lump sum of cash. Most specifically being credit card debt.
3. Regular bills need to get paid. Close to one-third of all people say the money will go to normal bills that stack up each month such as rent/mortgage, groceries, or filling their gas tank.
4. Splurging on something for you. Only around ten percent of people plan of taking their refund and doing something fun with it.
Almost a quarter of all people agree that without a refund they would be in a bad financial situation. So at least we have some money coming back.
I'm like most people, Savannah and I already have plans for our tax return. We're taking a dream vacation that we have been saving to go on for a while, to go on Safari in Africa later this year.