For more than 15 years our staff has been providing professional accounting and tax services in Kissimmee, Orlando and Hunters Creek FL, and we have seen how people often go on crazy spending sprees once they get through tax day with a sizeable chunk of cash refunds. However, any accountant in Kissimmee, Orlando, and Hunters Creek FL will frown upon having his work go down the drain with useless expenses. If you want to make your refund count its best that you do not spend on –
Not everyone is lucky enough to receive large tax refunds. Your accountant won’t mind if you squander away your refund check at the slots but your family (or any other dependants) certainly will. Who knows? Your luck might not last at the casino. A refund might seem like free money but getting caught in all the excitement and losing it all in a game of poker won’t do you any favors.
A New Car
You should only consider investing your cash refund for purchasing a brand new vehicle if you need one to get around. If you can manage without a new car, it is best that you do not risk it. Owning and maintaining a car is expensive to say the least. A down payment will help ease the financial burden a bit but keeping the vehicle will still cost you more in the long run. You do not need to be an accountant to know how much.
For instance you will have to save up a lot for expenses like higher insurance premiums, gas and maintenance in order to put your new driver’s license to use. Put any potential fender benders in the mix and you have a financial disaster waiting to happen.
A Tax Refund isn’t a Bonus
Just ask an accountant in Kissimmee, Orlando, or Hunters Creek FL, and he/she will tell you the same. So it is kind of funny how taxpayers get all excited once they spot a sizeable chunk of cash coming their way as they prepare their tax returns. Before long, they end up spending more money than their refunds are even worth or before they are even handed their refund checks!
Remember, a tax refund is not a bonus. It is just the money that should already be in your account in the first place. Uncle Sam just gives it back in the form of a refund check.
Do this Instead
By now you would have realized that spending your tax refunds unwisely can cripple your finances. Instead of squandering your money away use it to do something that might actually relieve you from any burdens like settling a credit card debt. This can help you save enormous amounts of interest. Once you pay off the debt you might actually be entitled to some money as well.
You can also create an emergency fund for any financial emergencies especially if you prefer debt free ways to get you out of trouble. For example, you might end up with diseases that aren’t covered by your medical insurance. You won’t be scrambling for loans if you have a substantial amount of emergency funds saved up. Once the refund checks come in you will have your accountant to thank.
For more information about tax services please contact us at 407-344-1012. God bless.