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12 Smart Things to do with a 2023 Income Tax Refund
Are you ready to file your income tax this year?
Some of us are super excited that it is income tax 2023 time.
Some of us, not so much. If you are expecting a refund, then I am sure that you are in the former group.
Don’t you hate it when you get a large sum of money, then a few days later you sit there wondering exactly where all of that money went?
Don’t let a big check throw you off from your goal of being a Strategic Shopper!
The key is to remember that Strategic Shopping is about two things:
- Having a plan
- Knowing when to shop
You can always get a deal if you keep these two things in mind.
Make a Good Plan
Make a Good Plan
If you are expecting an income tax refund in 2023, then please, take time to prepare how you will spend it BEFORE you actually get the money in your hands.
Preparing ahead of time helps to keep us focused.
Tell Your Money Where to Go
Tell Your Money Where to Go
I am always encouraging my children to make lists of things they would like to spend their money on way before they ever get any money.
You know that feeling you get when you just spent your money and then have all of those things you should have bought pop into your mind?
We tend to forget things once we see the money, and suddenly remember them once the money is long gone!
Preparing ahead of time helps to keep us focused, so take this time to write it all out ahead of time.
Know the Difference Between Needs and Wants
Know the Difference Between Needs and Wants
Prioritize these lists.
Write out all of your bills.
Make a list for your needs and a separate one for your wants.
There is nothing wrong with running out to Walmart to buy a large screen television or the latest video game.
However, let that be done after you have covered the essentials.
Remember to stay focused and keep things prioritized.
Take care of your bills.
Pay bills ahead whenever possible.
Buy the things on your needs list after you find the best deals possible.
Then, if you have anything left, consider buying some things on your wants list.
Get Ahead on Your Bills
Get Ahead on Your Bills
Do you know what you actually owe?
Are you caught up on your bills?
Have you fallen behind in certain areas?
Take some time to figure out how much it would cost to pay a few of your bills ahead a few months.
If you are getting a substantial amount of money back, then consider paying as many things ahead for 2023 that you can manage.
Instead of making monthly car insurance payments, pay it for the next six to twelve months.
Call your internet provider and pay your entire 2023 bill ahead of time.
Get ahead on your phone bill.
You can even pay your light bill ahead of time.
I do all of these things.
I have very few bills, so I actually pay most of my bills for an entire year in advance.
It is always so nice to get the light bill in the mail with the balance reading a credit due instead of debt due!
If you can’t manage to pay a bill way ahead, just make a little extra payment each month.
If you light bill is $200.00 this month, then pay $220.00.
By the time Christmas rolls around again you will have a month where you don’t have to pay your light bill because you paid it ahead of time!
Don’t Pay Full Price
Don’t Pay Full Price
Now is the time to start researching and finding the best deals on those things on your needs list.
It can be very tempting to just rush out and pay full price for things we need simply because we need them and have the funds available.
Don’t do it!
Google is your best friend while you are waiting for your income tax refund in 2023.
Take a few minutes to do a Google search for the items on your list.
There are a ton of deals, coupons, and coupon codes out there.
Determine right now that you are not going to pay full price for everything on your needs list.
Check all of those second-hand sales sites too.
Places like Facebook Marketplace and Craigslist are great resources to utilize.
Everyone is selling something today. There’s a high chance someone has a deal on the very thing you are looking for.
Have Self-Control
Have Self-Control
After your bills are all planned out and you have located all of the deals on your needs list, then and only then is it time to consider your wants list.
Self-control isn’t a term readily used today, but if you want to have a better financial year in 2023 then you have experienced in the past, then you need to start using and applying it more often.
Use self-control.
You don’t need to check everything off from your wants list right now.
Patience can pay off in dividends!
Know When to Shop
Know When to Shop
Knowing when to shop typically applies to when the price tag is at its lowest point, but it can also mean when the money is available to make those purchases.
Getting an income tax refund, or any other large sum of money is the perfect time to set the tone for the rest of the year.
Start by getting rid of that poor man’s mentality that says, I deserve this or that.
If you can’t throw out the thoughts that you deserve something, then at least use the phrase to your advantage.
Think things like: I deserve to be out of debt. I deserve to not be so stressed out about finances this year.
You Deserve a Stress-free Year
You Deserve a Stress-free Year
Get a new mind set for 2023.
I hear people all the time saying how they deserve this and deserve that.
Take that mindset and use it to your advantage.
Instead of saying, I deserve an expensive phone, say I deserve to not be under financial stress this year.
Don’t live the feast or famine lifestyle this year.
Let the income tax time of plenty help to relieve your typical times of lack.
Stock Your Pantry
Stock Your Pantry
If you know me at all, then you know that I am a huge advocate of keeping the pantry well-stocked.
Read my article, Ten Best Ingredients to Keep Stocked in the Pantry over here.
Take time to make a list of your everyday pantry items.
Buying these extra pantry staples will take a lot of stress off at meal time this year.
You won’t have to worry about feeding the family when finances aren’t so grand if you take some of this money to make sure the staples are stocked up in the kitchen now.
Some things I keep stocked in my pantry include things like:
- powdered eggs
- shelf-stable milk
- flour
- baking powder
- baking soda
- yeast
- sugar
- oil
- shortening
- salt
- herbs
- spices
Fill up the freezer with meat. If nothing else, load up the freezer with your favorite brand of bread.
Skip the Car Payments
Skip the Car Payments
Maybe you have to make a large purchase, like a car this year. Instead of going through the bank and then struggling with payments, consider paying cash for a used car.
I can hear many of you complaining that you don’t want a used car that needs to be repaired.
Even a used vehicle that needs repairs will cost you way less than going to a bank and dealership.
I have purchased many, many vehicles through Craigslist with great success and lots of money left in my wallet!
Don’t Shop at Rent to Own Stores
Don’t Shop at Rent to Own Stores
I cringe everytime I hear that someone is renting a new couch or table.
Stop!
These companies are aimed at poor people.
They charge way more than it would cost to just save the money and buy what you need outright.
Don’t follow today’s crowd that needs to have instant gratification.
It’s okay to go without and make due with what you have while saving money towards what you need.
Your grandparents and their parents before them just lived that way.
It was never an option to do otherwise.
Don’t sacrafice tomorrow’s financial freedom for today’s wants.
Build an Emergency Fund
Build an Emergency Fund
You know you need an emergency fund.
You hear it all the time.
You actually wish you had one.
Do it!
Build it fast or build it slow.
Just build it.
Having an emergency fund actually turns emergencies into inconviences.
If you need an new tire on your car and you don’t have an emergency fund, then it becomes a true emergency.
If you need a new tire on your car and you have the money set aside in your emergency fund to buy one, then it isn’t really an emergency.
It’s just the inconvience of going to get the new tire on your car.
Save yourself from a bunch of emergencies by setting aside some money now.
12 Smart Things to do with a 2023 Income Tax Refund
These are just a few of my ideas to help you do smart things with your 2023 income tax.
Which ones are you going to apply this year?
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