You only get one tax refund and one tax rebate (if you qualify for them). Of course, that makes sense. So why should I point that out?
Because many people get excited when they see they are getting a tax return or any other form of unexpected money. The temptation is to think about everything you can do with it, and it is easy to lose sight of the fact that you only get this money once. Don’t double count your money!
What do you mean – don’t double count your money? What I mean is don’t get carried away planning how you will spend your money. Sure, a $600 rebate sounds like a lot of money. But you only get $600. It’s not $600 you can save, and $600 you can use to repay loans, and $600 you can spend toward a new computer. It is $600. Once.
The same thing goes for your tax refund. Between the two, you may receive several thousand dollars. But be careful not to get carried away thinking about all the ways you can spend this money. You only get to use it once.
Plan how you will spend it. Analyze your financial situation, and determine where the money can be utilized the best way for your situation. You can repay debt, save or invest it, or go blow it on a new toy. Maybe you can do a little of each if you receive a lot of money. The point is, you only get to use this money once, so you need to make the best use of it for your situation.