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Mar 11 2013
9 Popular Ways To Waste Your Tax Return

Posted in general

According to an annual survey, this year?s average tax refund is $2,803. It is almost impossible not to spend such nice chunk of change. This instant injection of cash leads to temptation and clouds your long life decision of paying off your debt. This extra money can quickly be gone if you are not careful. Here are 9 ways you are wasting your tax return:

  1. Buy a New Car. You may find an excuse that your car is lack of horsepower or old, but if it?s paid off and gets you from point A to point B, get as many miles as you can out of it. Buying a new car will burden you with monthly payments for years to come, and increases the cost of insurance.
  2. Unnecessary Upgrades. Upgrading your gadgets to the latest and greatest is another way to waste your tax return. It?s one thing to get a brand-new phone if you?re still on T9 texting. However, upgrading for a better speed and screen is a waste of money.
  3. Forgetting Smart Living Ways. Not shopping sales and ignoring coupons are the fastest ways to waste your money away.
  4. Unplanned Travel. A recent report tells that booking 49 days in advance provides the cheapest domestic flights, while affordable overseas travel is ideally booked 81 days in advance.
  5. Eating Out Unnecessarily. We all like to celebrate, and there?s nothing wrong with using a little bit of your refund to enjoy a nice dinner out. However, having that extra cushion makes it easy to let your guard down. Just because you have the money to stop brown-bagging your lunch at work doesn?t mean you should.
  6. Fashion Fever. Shopping for the latest designer looks adds a lot of extra expense.
  7. Neglect Savings. Unexpected expenses can come out of nowhere, and if you have the cash on hand you won?t have to deal with high interest rates from your credit card.
  8. Gamble. Don't do it, really. The house will take your money away. It is not called gambling if you don't know for sure that you are going to win.
  9. Personal Loan. Most of the time these personal loans don?t include interest, and are paid back at a painstakingly slow rate.

Last Updated by Admin on 2013-03-27 11:08:25 AM