Monday, January 28, 2013

{Singing} It’s the most wonderful time of the year!

{Singing} It’s the most wonderful time of the year! With the kids jingle belling and everyone telling you “Be of good cheer”…It’s the most wonderful time of the year!!
No…not Christmas…it’s income tax season!! Lol! Seriously, this is the time of the year that single parents look forward to the most! All those months of working, childcare, medical expenses, daycare, etc. will manifest into a nice refund check!! But listen…please please please….don’t get “fabulous" with your refund check.

It’s your money and of course you can do whatever you want with it. But consider doing something that will set you up for success for the remainder of the year.
Here are some ideas:
1.       I set up family vacations with my extra money. While I may not pay for the entire trip, I’ll make the initial deposit and then set up a payment plan for the remaining. It’s nice to have something to look forward to!!
2.       I invest into my business. Invest in a business that can be another income stream for you throughout the year. I’m all about multiple streams of income!! In 2011 I was laid off TWICE {not a good year for government contractors) so only having one stream of income as a single parent makes me VERY nervous. So consider using your extra money to start a side business. If you already have a business, reinvest in it…get a website if you don’t have one, order some professional business cards, buy better equipment, hire a business consultant to help you map out a plan for growth. The best part about this….you can write it off next income tax season!
3.       Car maintenance! Get that tune up, buy those new tires, replace parts….whatever. I would be in serious trouble without my car as would most single parents who only have that one source of transportation.
4.       Car it up for the year or at least for six months. Now you don’t have to worry about that extra bill for the period of time you have paid it up.
5.       Emergency Fund – I’m telling you, 2011 made me so nervous! My father is always asking me if I’m saving money {insert hysterical laughter} How?? My paychecks JUST cover my bills….like barely…like….barely. This is a time when I can set aside that elusive “extra money” my father is always asking about. I think the standard emergency fund is supposed to cover 3-6 months of living expenses, but I save at least one month’s expenses and build on it throughout the year.
6.       Birthday and Christmas savings – some banks let you set up Christmas saving accounts that can be accessed after November. For me I have another bank account that I don’t use often {out of sight out of mind} and I’ll send a few dollars a month to that account every paycheck {auto payment so you don’t even notice that it’s missing} You can also use this to save up for Birthdays and not just for your kids…but for birthday parties they get invited to. I promise between my three kids they get invited to more birthday parties than I care for. And the party usually falls on a week that I’m in between paychecks…so now my kid shows up with the crappy Dollar Store gift...don’t!
So those are some of my ideas. It depends on how much you get back as to what you can do. Trust me…I pay a small fortune in childcare and medical expenses and while I curse profusely complain all year I’m always happy around income tax time!!
Here’s wishing you a Happy Income Season! LOL!
Leave me a comment….share your ideas with me!

No comments:

Post a Comment