With April 1 almost here, those tax refund checks are starting to arrive in the mail. What are you going to do with the extra money?
For most people, it's a battle of logic vs. emotion. The left side of your brain, or the logical side, wants to put the money into savings, invest it and make it grow or pay off debt, while the right side of your brain, or the emotional side, wants to go on vacation or remodel the kitchen.
The key is to put your emotions on the shelf and let reason be your guide. If you're going to spend the money, make sure there is some benefit or ROI so you're not just throwing that money away.
Focus on financial freedom
Focus on the long-term results of financial freedom and abundance that comes with paying off your credit cards, student loans and any other debt. Most people with credit card debt don't understand that with interest rates at 20% or more, they'll be paying off their credit cards forever. That extra money can help put a significant dent in your overall balance.
Another wise investment is to use that refund to get fit and healthy by buying exercise equipment or a gym membership. The reason: taking control of your weight and overall health is the fastest way to ascend to world-class success in all areas of your life. Not only will you feel better, but that confidence will carry over into everything you do. Your level of success in your career, relationships and everything else will drastically improve.
Invest in yourself
If you want to spend your refund, invest wisely in yourself by committing to never-ending personal growth and development. Get some business and self-improvement books; take some professional development seminars and look into coaching/mentoring programs. The goal is to use the money to improve your skills.
Take that vacation if you can. The reason: the most successful people know the enemy of creativity and clarity is excessive cognition. Cognitive overload will bring anyone down both personally and professionally, and it's why world-class performers take this time off to slow their thought process down and elevate their consciousness to gain a fresh perspective.
Start a business
Why not become your own boss? Use your tax refund to start a business. No one likes to pay tax, but wouldn't it be better to be so successful and rich that you have to pay tax rather than receiving a mere $3,000 refund? Use your talents and passions and solve a problem that people are willing to pay for.
Don't get caught up in the moment
When you open up that envelope and see that big refund check, put it down and walk away. If you act on impulse you're going to get into trouble. Write up a list of the pros and cons of spending the money vs. investing it or paying off debt. Don't go out on a shopping spree.
When you receive your tax refund check in the mail this year, be smart. While splurging and throwing the money away on something temporary or on material possessions might sound fun, think about the big picture and what makes the most sense to your current situation.