Being a practical, responsible adult is hard work. That’s why, when it comes time for people to decide how to use a tax refund, it’s easy to default to an exotic trip, a pair of designer heels or a set of golf clubs that you have been eyeing for months.
But hold on, let’s pump the brakes. It’s not unreasonable to want to treat yourself to a big-ticket item. However, that refund is money you earned, not a bonus from Uncle Sam.
This year the IRS expects to give more than 70 percent of taxpayers refunds. Last year, 112 million refunds were issued, averaging $2,895. While that could add to up to many margaritas on the beach, it’s important to first consider those sometimes dreaded and boring adult responsibilities that will pay off in the long run.
Here are six suggestions for using your tax return and avoiding buyer’s remorse:
If you have trouble deciding what to do with your refund or need help restraining yourself from spending the full check, put it in a drawer and consult a financial advisor. Rockland Trust’s team of financial advisors will help you stay focused on your long-term goals and steer you in the right direction.
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