It's tax return time, which is everyone's favorite time of year. But what you do with your money, and what you should do with your money, isn't always the same thing. As college students it's really difficult to spend your money on the right things. As soon as we get our money back all we want to do, is have a good night out of the town, but that's probably not what we should do.
I'm going to give you a break down on how someone should spend their tax return, and base the examples off a $1,000 return.
30% ($300)
This should go straight into your savings account, no matter if it's saving up for an emergency or trip to another country. Before you spend any money, you need to put some into your savings.
25% ($250)
Start paying off some of your debts. Student loans, credit card debt, car payments, whatever it may be, just pay a lump payment so it's less money you later have to worry about.
20% ($200)
Things you need to live, such as food or gas. New car tires, or new anything you can not live without. Shoes, clothes, the newest IPhone doesn't count.
10% ($100)
This is something you may want, like the newest pair of Nike or the coolest new TV. This money you can do whatever you want with, go get our hair colored or our nails done, treat yourself.
10% ($100)
Get a gift card to somewhere you buy a lot of things from, like Walmart or a gas station. This card could be used for when you just don't have enough money that week to buy gas, or you just really need one more meal before pay day. It will come in handy one day.
5% ($50)
Give back to the community. Find a charity that is locate, or pay for a few people while in line at a fast food restaurant. Good karma, is better than no karma. You also never know how much you may have helped someone else that might have needed it that day.
Sometimes this isn't possible to follow, but do your best. This guide will definalty give you the best chance in spending you tax return correctly. You wouldn't waste money, you would pay back debt, and help someone else. Good luck yo everyone, I know I can't wait to get my return back!
