9 Smart Ways to Spend Your Tax Refund Money

by biesingerfirejourney | Mar 2, 2022 | Budget & Save

This post may contain affiliate links; please see our disclaimer for details.

Sometimes it can be hard to know the best place to start spending your tax refund wisely.

Most of the time, the first place we want to spend our money is at the stores. We purchase new clothes, electronics, shoes, and probably more products than we need.

Getting caught up in the hustle and bustle of looking cool is easy. Many try keeping up with the Joneses down the street; however, there are much wiser places to put your money that can help your financial goals.

So let’s explore 9 smart ways to spend your upcoming tax refund money to set you up for a better future!

1. Pay Off Your Debt

We know this is not the most glamorous or fun way to spend your money but paying off debt has many benefits.

With a little extra money in your pocket, it’s the perfect time to lessen the stress of those bills.

Almost every adult has some student loans, house bills, or credit card debt that needs to be paid. Tax refund money can help to help ease this burden.

• Student Loans: Right now, almost one-third of American students will owe something in student debt, and the average student loan debt in 2020 was over $38,500 per person. These numbers are staggering and only expected to increase. Another crazy statistic about student loans is that about 9% of people who have student loans are falling behind on their payments.
• Mortgage: According to the Federal Reserve Bank of New York, mortgage debt has risen to over $10 trillion by the fourth financial quarter of 2020. This has been increasing dramatically since the peak in 2008. If you are a home-owning adult with a mortgage, it may be a good idea to start decreasing your debt with a jump-start from your tax refund.
• Credit Card Debit: Unfortunately, many struggle to break free of credit card debt worldwide. In the last quarter of 2021, the credit card balance was at a staggering $860 billion. These numbers are far from the number reached during the 2008 financial crisis. With your tax refund, it is time to start chipping away at your credit card debt and building your financial portfolio.

Related content: 11 Tips That Helped Me Graduate Student Loan Debt Free With One Kid

Related content: The Debt Snowball – How We Paid Off $56,000 In Student Loans

2. Emergency Savings Fund

We can never anticipate every twist life throws at us. What if your car doesn’t start one morning, or if the pipes burst in your house while you were on a trip, and your home insurance doesn’t cover flood damage?

These are real problems we can run into, and if you don’t have a little extra money put aside, you may be adding more to your credit card debt or would have to take out a personal loan.

CNCB says that only 39% of Americans can afford an extra $1000 toward an unexpected purchase.

If you haven’t already, it is a good time to put aside some extra money for these unexpected purchases.

As a rule of thumb, some people like to have enough money in an emergency fund to cover anywhere from three to six months of expenses.

Let’s say you got laid off and didn’t have enough to cover the bills. This would be stressful for anyone, but having an emergency fund provides peace of mind.

It is time to ease your worries and start saving for these mishaps by creating an emergency fund.

3. Add to Your Retirement Account

You have likely said, or a coworker has said: “can I retire yet?” Retirement and even early retirement (and maybe having a house on the beach) are what most people are striving to achieve.

Using your tax refund money to add to your 401K, Roth IRA, or Traditional IRA is a smart way to spend that money.

If you haven’t set up a brokerage account to invest in a retirement fund, this is a great time to start, so you aren’t working until you are 80.

By setting up a brokerage account, you are building your way toward financial freedom. If you dedicate all or some of your tax refund every year to your retirement fund, you will be in a great spot by the time you are ready for that phase of your life.

4. Reinvest in Yourself

Although all of the following are fun, by reinvesting in yourself, I don’t mean buying a luxury car, having a spa day, or going on a shopping spree.

If you want to take a budgeting course or purchase some new self-help books, using your tax refund would be a great way to use that money.

We rarely have money fall in our laps, so when we have some (like after tax season), it can be nice to use it to improve ourselves.

One way to better reinvest is to take a course on something that will earn you more money. There are countless courses on becoming successful at affiliated marketing, writing, investing, real estate, or other ways to make passive income.

Investing in yourself is a smart move when it comes to your tax refund.

5. Home Renovation

Have you been putting off upgrading your kitchen or getting new floors for the bathroom?

Home renovations are a common expense, but with the help of your tax refund, it might be a wise place to use your money.

If there are “absolutes” when it comes to your home for home renovations (i.e., you NEED a new water heater, or your washer is held together with duct tape), that is probably where you should spend your money first; however, there are other options that can save you big down the road.

Here are some home improvements to consider that can save you money in the long run:

• Switching to low-flow toilets and showerheads: This can help to reduce the cost of water.
• Upgraded security system: If you have an outdated security system yet more valuables in your house, it might be a wise choice to update that to protect your valuables when you are away.
• Shifting to LED light bulbs: These light bulbs can help you to save money on your next energy bill

Using your tax refund money to upgrade your house and add value is an excellent way to get the most out of your money!

Before renting our second property, we painted all cabinets white (see picture below). This did not cost much money and helped make the place look a lot nicer / added value. 🙂

6. Take Advantage of Compound Interest

Are you new to the world of investing? It can be overwhelming to try and follow the stock market and know what purchases to make.

However, if this is something you have always been interested in and want to try, using your tax refund money is a good start (that way, if you make a wrong decision, you aren’t using your life savings).

A safe place to start when it comes to the stock market is the S&P 500. The S&P 500 (Standard & Poor’s 500) is an index that tracks the most notable 500 companies in the U.S. These companies have some of the greatest impacts on the economy.

By investing in the S&P 500, you own a small portion of those 500 publicly traded companies. If you are new to investing, this is safer for your money than purchasing individual stocks.

With individual stocks, you risk losing all the money you put into that company going bankrupt.  

If you have been dying to dip your toes into investing, why not start this year with some of your tax refunds?

7. Jump Start Your Business

You have a little extra money and a great idea. Why not leap and start your business?

You can use the money to hire a website creator or buy the necessary supplies. You can also file for an LLC with the money.

Investing your money into creating a business can help bring you financial freedom and allow you to have more money in the future. Take this as a sign to jump-start your business with your tax refund money.

8. Travel

Although this may sound like a way of wasting your money, hear us out because we don’t mean drinking endless margaritas on a beach (even as tempting as that sounds).

Taking a vacation to clear your mind, discover your passions, and learn about a new culture is not wasted.

Traveling allows you the opportunity to explore our world and all its uniqueness with it. You could also travel to do volunteer work.

If you have always wanted to volunteer abroad, you could use some of your tax refund to finally do it. There are plenty of affordable programs that do 1–2-week volunteering opportunities.

Traveling can also be good because it gives you experiences that can give you an edge.

Many companies ask about your experiences with diversity or what diversity means to you in an interview.

If you have traveled and have experiences with new cultures, you have a great answer to those types of questions because you have had that experience.

Spending your tax refund money on a new and exciting adventure could be a wise decision that can benefit you for years.

9. Contribute to a 529 Plan

If you have never heard of a 529 plan, don’t worry because you aren’t alone.

A 529 plan (also known as a qualified tuition plan) is a way to save money for possible future educational costs for your children.

To be a little more specific, according to the U.S. Securities and Exchange Commission, the 529 plan is a “tax-advantaged savings plan designed to encourage savings for future educational costs.”

The two types of plans are prepaid tuition and education savings plans.

Prepaid plans allow the saver (you) to buy credits, at the current price, to a university for your child. Prepaid plans are typically only for tuition and fees and do not help cover room and board.

The biggest advantage to a prepaid plan is it allows you to pay at today’s prices versus the future prices of college.

Education savings plans allow the saver to open an investment account to save for all higher education costs, including room and board.

These plans are known to be a bit riskier depending on how you invest your money. They also are not as protected by the state as many prepaid plans.

It is important to do your homework regarding the best option for you and your family when it comes to opening and investing in a 529 plan; however, if you know your kids have dreams of going to college, this may be a smart option for you when it comes to your tax refund this year.

In Conclusion

There are a variety of smart ways you can spend your tax refund money. We want you to make the best decisions for yourself with your money.

Whether saving for retirement or paying off your debt, you will set yourself up for a better financial future!

Disclaimer:

We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!

10 Ways to Lose Weight Without Blowing The Budget

by biesingerfirejourney | Feb 27, 2022 | Budget & Save

This post may contain affiliate links; please see our disclaimer for details.

You want to lose weight, but challenges will always get in the way when you’re on a budget.

“There are too many people who have joined that gym. I don’t have enough time in the day. I’m just too tired, and (one of the most famous lines) it costs too much money.”

It always seems like we go back to the thought of money. The million-dollar question is how to lose weight while on a budget.

The cost of new equipment, special gym memberships, and food plans can add up! Then too often, it just doesn’t seem as worth the price.

While your health and weight loss are important, it is also important to save money when you can.

We are reviewing 10 tips to help you lose weight without breaking your bank account.

Watch the pounds shed off and the money pile up by applying these tips in your everyday routine!

1. Budget Your Meals

This simple yet effective concept has helped countless people lose weight on a budget and keep it off!

It may take a little more time at the beginning of the week to sit down and plan. Heading to the grocery store with a list will save you time while you are there and money!

Without a list, unintended purchases can add up for you and counteract the budget you have been sticking to.

Another important tip to remember at the grocery store is to buy fruits and vegetables in season. Cut those fruits and vegetables at home rather than buying precut produce.

These little changes to your next grocery trip could help you slim down and save big!

2. Do Budget-Friendly Workouts

Are your friends joining the newest spin class, or is your roommate begging you to take a hot yoga course? As fun as these endeavors seem, they may not be the best option for losing weight on a budget.

For example, a monthly membership for four workout sessions could be around $60.00.

Paying $60.00 a month for only four sessions doesn’t seem as financially sensible since a basic gym membership is $10.00 a month.

One beautiful aspect of most gym memberships is they usually have unlimited entry into the facility. Also, many of the gyms come with perks as well like free workout classes.

Plus, you can use YouTube for free to help design the workouts you can do at the gym. Many of the HIIT workouts or spinning classes you would pay for can be found on YouTube and recreated.

With so many wonderful and free resources, you can work out and lose weight without ruining your monthly budget.

Related Content: 6 Great Ways to Boost Your Home Workout Routine

3. Practice Mindful Eating

How often do many of us think about our food and each mouthful we consume as we eat?

Scarfing it down and moving on to your next activity is easy. There are actual studies and research about the benefits of mindful eating habits. 

According to an article written by Harvard Health Publishing, a nutritionist, Lilian Cheung, says that mindful eating habits can help to lose weight.

Due to hormones and the nervous system, it takes around 20 minutes for our brain to register the full stomach. Therefore, if you eat too quickly, you may eat more and overeat.

Some interesting ways to practice mindful eating and slowing down your meals include setting a timer for 20-30 minutes and using the entire time to eat the meal or eating with your non-dominant hand to slow down.

A more meditative way of practicing mindful eating habits would be to imagine all the steps it would take to produce the meal you are eating, including the growing and harvesting of the crops, to the preparation it took to process, package, and ship the food, to the meal preparation itself.

Chewing each bite more thoroughly throughout this practice will also help decrease the bloating that could occur with eating quickly.

Not only will mindful eating practices help to save you money, but they might also help you to destress at the same time.

4. Reduce Stress in Your Life

Some of you may have heard of the hormone cortisol. Cortisol is the “stress” hormone, and it is the bad hormone that makes us gain weight. This is only partially true.

Cortisol is released from a part of the brain when we experience stress. These stressors include giving a big presentation at work, raising your hand in class, or simply putting your body under physical stress like exercising.

Our bodies need cortisol as a part of life. The trouble comes in when we are experiencing elevated levels of chronic stress, which can lead to damaging effects like increased blood sugar.

Interestingly, incorporating more exercise into your life can decrease circulating cortisol levels in your body. This result is because when you exercise, you are putting your body under stress. Then you are building up your tolerance to stress, and your body decreases the amount of cortisol released with everyday stressors.

It is important to remember to eat good carbohydrates, like whole grains, when exercising and avoiding weight gain related to cortisol.

If you don’t, your body will use proteins for energy instead of carbs and fat, which defeats the purpose of weight loss and will not help you lose weight related to the hormone cortisol.

Try finding easy and free ways to help you destress, including meditation, journaling, taking a walk, calling a friend, and overall recognizing what items in your life are causing the most stress and trying to eliminate those.

If that cannot be done, then destressing your life in other ways will help.

5. Cutting Out the Sugary Drinks

Sometimes, nothing is more satisfying than the crack of the can and the sizzle of the drink. Unfortunately, most delicious sizzle drinks aren’t good for us. Whether it’s a soda, energy drink, or beer, it will be high in sugar and calories.

Also, keep in mind the prices. The average pack of coke goes for around $6.00. It can be difficult for you to switch to a healthier alternative if you are used to your midday Monster, but the results with your weight loss and overall health will be worth it.

If you don’t like drinking plain water, a healthier alternative for you would be lemon water. It might be a good time to join if you haven’t hopped on the lemon water craze yet.  

Lemon water has some great aspects, such as it is a great source of vitamin C. Vitamin C is essential for your health and can help with brighter and better skin.

Lemons might not be the first fruit you buy on your grocery trips, but they are typically priced around $0.89. This can seem pricey; however, if you buy three lemons and use half a lemon a day, that would be a week’s worth of lemon water!  

Drinking more water is also known to make you feel fuller and eat less food, aiding your weight loss journey.

Everything is good in moderation, so try and start small by switching one soda for water and see where it takes you!

6. Good Quality Sleep

We all know how important sleep is for our health. Most people do not get enough sleep at night to live healthy lives.

Not only is it important for our overall health to get a good night’s sleep, but it can also add to your weight loss.

The Sleep Foundation recognizes how important it is to get a good night’s sleep to help aid in weight loss. They have stated that many studies show the relationship between the lack of sleep and metabolic disorders, weight gain, and the risk of obesity.

It is also known that more research on these relationships needs to be conducted to solidify the exact reason for this connection.

Some ways to better your sleep

• Not eating late at night or right before bed.
• Trying to sleep in a dark room.
• Reducing electronic use before bed.
• Having a regular sleep schedule.
• Reducing your stress before bed.

Whatever works for you to ensure you get quality rest will only help improve your overall health!

7. Intermittent Fasting

One inexpensive and effective method for weight loss is intermittent fasting.

Intermittent fasting is a wonderful way to lose weight and not break your budget because it doesn’t require any purchases. You don’t have to buy any special plans or subscriptions.

Intermittent fasting focuses on when you can eat during a period. Mark Mattson, P.h.D, of Johns Hopkins, explains how intermittent fasting causes metabolic switching, which is your body using your sugar stores to start to burn fat.

It is also advised to check with your health care provider to ensure this is a safe option for you for weight loss.

There are many methods of intermittent fastings, such as the daily method. This method consists of being allowed to eat for six or eight hours and fasting for the rest of the 24 hours.

Another option would be eating regularly for five days of a week and then for two days a week you limit your calorie intake.

If you decide intermittent fasting might be a good option for you, remember not to go too long (as in days at a time) without eating because it could put your body in starvation mode, which would lead to weight gain and be dangerous for your health.

Also, it may take a few weeks (two to four) before you start to notice a difference in how you feel and your weight.

This is a great and cheap way to jump-start your weight loss and help you save money and not break your budget.

If interested, I wrote an article explaining exactly How Intermittent Fasting Accelerated My Weight Loss [Lost 35 Pounds].

8. Focus on the Gut

Our digestive tract and intestines (i.e., “the gut”) are filled with trillions of little bacteria, fungi, and other little microbes that can affect weight loss.

These microbes impact our hormones, energy levels, how food is absorbed, and how fats from our diet are stored.

Gut health is also very individualized because of the different factors that can affect it, such as your environment and genetics. There are a variety of ways you can improve your gut health.

One step is to add more fiber to your diet. Adding fiber can be easy by planning meals and snacks rich in fruits, vegetables, or seeds, and can help with weight management.

Another tip is to add fermented foods to your diet. Fermented foods like yogurt, pickles, and kombucha are loaded with gut-healing probiotics.

A happy gut can mean all the difference in weight loss and doesn’t have to break your budget.

9. Less Meat – More Savings

When you look at your grocery bill, it can be shocking how expensive a pack of ground beef or chicken breasts is. Fish and seafood have even higher-priced usually.

You don’t necessarily have to go meatless to save money and lose weight but opting for beans or eggs as a protein source may save you some money.

It is known that people who follow a vegetarian diet tend to be leaner and have less of a risk of obesity.

Just remember that substituting meat by eating more sugars and fats through non-meat alternatives is not healthier.

Gaining protein through other outlets is important if you decide to go meatless. Also, remember to maintain a balanced diet of fruits, vegetables, and healthy proteins and carbs.

10. Lastly, Losing Weight Saves Money

Hear us out; deaths related to heart disease are one of the top killers in America. There are numerous other comorbidities linked to obesity.

These include hypertension, multiple cancer types, high cholesterol, type two diabetes, coronary heart disease, etc.

According to the CDC, in 2008, the US spent around $147 billion on diseases related to obesity. The bottom line is chronic health diseases related to obesity can be costly.

This is not a tip we all think about when you want to lose weight on a budget, but it is a reminder of why we are trying to be the healthiest versions of ourselves every day!

Bonus Tip: Try out HealthyWage!

HealthyWage is a program where you can bet money to lose a certain amount of weight (you decide how much) in a certain amount of time. I completed two challenges, lost 70 lbs, and won over $3,000! You can check out my full review – My HealthyWage Review: I Lost 70 Pounds and WON $3,426!

If you want to make money just like me while losing weight like me, you can start a HealthyWager today and get paid to lose weight! You can win up to $10,000!

All in All, …

You can take numerous paths to assist with your weight loss journey. Remember, there are many ways to help save money in the end and not break the bank.

The best tip is to focus on how you feel and what makes you the healthiest! What are some ways you’ve lost weight on a budget? Please comment below and let us know! 🙂

Disclaimer

The content on this blog includes our personal experiences and opinions in regard to pursuing a healthier lifestyle. We hope the information provides valuable insights to every reader but we are not health advisors. When making your health choices, we recommend researching multiple sources and/or receiving advice from a doctor or licensed health professional.

The 5 Best Personal Finance Books to Read in 2022

by biesingerfirejourney | Feb 13, 2022 | Budget & Save

This post may contain affiliate links; please see our disclaimer for details.

We should all be familiar with personal finance and financial literacy. Managing your money efficiently becomes very difficult without proper knowledge of personal finance, and overspending becomes easier.

There are many things to be aware of and practice regarding personal finance. Retirement planning, investing, budgeting, insurance planning… and so on.

Becoming a financially literate person cannot happen overnight! It takes years of practice and continuous learning to become an expert in financial management.

What better way to learn these essential skills than to read the best personal finance books!

In this article, I will share the top 5 personal finance books you should read in 2022. By reading these books, my knowledge of personal finance and financial literacy has been elevated to a new level.

1. Rich Dad Poor Dad – Robert Kiyosaki
2. Total Money Makeover – Dave Ramsey
3. The Simple Path to Wealth – JL Collins
4. Why Didn’t They Teach Me This In School? – Cary Siegel
5. The intelligent investor – Benjamin Graham

What Will You Learn From These Books?

The books in this article are written by some of the world’s top financial experts, businessmen, and investors. They are simple with concepts that are easy to comprehend. You will learn about the following –

1. How to manage your money: Including the rules of money management. You will know how to use your credit card correctly, the difference between an asset and a liability, when to buy or when to sell, etc.

2. How saving and investing work: Most people don’t know this but saving and investing are somewhat related. You will also learn about the different types of investments and other important concepts.

3. Tips and tricks: These books offer money-saving and making techniques and certain hacks to help you save more and spend less!

4. How to make your money work for you: This is the part where you will learn about the difference between passive and active income, how compound interest works, mutual funds, etc. You will also know what financial independence means and how it can help you retire earlier than everyone else!

5. Retirement planning: You will learn about retirement planning, including why you should invest for your future, choosing the best mutual funds, and how much money you need to retire.

Why Read These Top 5 Personal Finance Books?

First, they are written by some of the best financial experts in the world with real-world experience. Also, they appeal to people of different ages and backgrounds, regardless of whether you’re 18 or 60 years old.

You can be a college student or someone who just entered your first job… These books will still teach you all the essentials of personal finance!

If you want to learn more about personal finance and how to become financially literate, then definitely read these books!

So now let’s begin with the top 5 personal finance books that you should read in 2022!

1. Rich Dad Poor Dad – Robert Kiyosaki

The first book on our list is not a usual finance book. It was written by Robert Kiyosaki and it is about personal finance from a rich dad and poor dad’s perspective.

It teaches the difference between the two dads’ financial literacy and how it affects them even today!

What Will You Learn?

There are multiple ways to make money, not only by working a job.

There are clear differences between assets and liabilities. You’ll learn methods to becoming financially free by investing your money in assets instead of liabilities.

You will understand the types of investments that are necessary to becoming rich. You’ll also learn to assess risk and fix your finances by hearing personal stories!

2. Total Money Makeover – Dave Ramsey

The next book on our list is not a usual finance book as well. This money-saving and making guide will teach you the basics of saving, spending less, and avoiding debt!

The book also talks about many surprising money facts about American culture and how people of America view money. The main goal of this book is to teach about making sacrifices now and living a frugal life to secure your future and be financially stable!

What Will You Learn?

You will learn what true wealth is and why it’s more important than the number in your bank account. You’ll also learn how you can take control of your financial life.

Moreover, you will discover money-saving tricks inspired by the author’s personal story about becoming financially independent!

This book also touches on the basics of investments like mutual funds and stocks, so you can learn more about them! Dave Ramsey also writes about 7 baby steps to help people get out of debt and build real wealth!

3. The Simple Path to Wealth – JL Collins

JL Collins covers all the basics of personal finance, such as how to get rid of bad debt and keep investments simple. This book is ideal for people who want to start investing and learn how to grow their money.

It is a great starting point for people who want to know the basics of wealth management. The book also talks about different types of investment vehicles and how they can help you in your journey to financial independence!

What Will You Learn?

You will learn the power of long-term investments and how to utilize every opportunity that comes your way! The path to wealth doesn’t have to be complicated, and JL Collins does a great job of making investing an easy journey.

The author uses their experience to teach different types of assets and money management.

He talks about what true wealth and financial independence are! It will give you insights into research studies about spending habits and how they can affect your investments.

You’ll also learn why passive incomes are bad for you! If you are a beginner, this book is the best thing that will teach you all about personal finance!

4. Why Didn’t They Teach Me This In School? – Cary Siegel

Cary Siegel is a recognized financial expert who has appeared on numerous television shows, including ABC’s 20/20. The book is great for young people and couples! It teaches young investors about the money management BASICS that should have been taught in school.

He also talks about the importance of budgeting, saving, and staying out of debt. This book is ideal for people of ALL AGES on their journey to understanding how money works and how to manage it!

What Will You Learn?

You will learn how to create financial habits that are the building blocks of success. You’ll also discover secrets about financial markets and how they can help you become wealthy.

You’ll also get insights into why some things should be avoided while others can benefit your personal finance. The book is very famous for its 99 personal money management tips and why it is important to have good financial habits

5. The Intelligent Investor – Benjamin Graham

Last but not least, The Intelligent Investor, written by Benjamin Graham. As the name goes, it teaches how to be intelligent when investing.

Graham was one of the greatest finance experts, known for his teachings on value investing strategies, and was Warren Buffett’s mentor and friend.

The book focuses more on the philosophy of investing rather than looking at individual options and opportunities in the market. It talks about broad and general principles for investing and those who want to make wise choices when it comes to their investments.

What Will You Learn?

You’ll learn how to use your money as a tool, not as an object of desire. You’ll also realize why you should invest in stocks and avoid savings accounts and FDs.

This book is about becoming a wise investor and making the best of your money by understanding karma exists.

The author talks about how famous investors like Warren Buffet made a huge fortune with smart and long-term investments. The book is ideal for people who want to jump into the world of inventing and learn how to make smart decisions for long-term investments.

Conclusion

So there you have it! If you are trying to start on your journey of financial independence, these books are the perfect place to begin!

Make sure you do not invest in things you don’t understand. Have a long-term mindset and learn how to be smart about your money.

Make sure that you also keep track of your budgeting and spending carefully. Take what you need and start investing in your future now! Thanks for reading!

Disclaimer:

We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!