How to be a Frugal Family

Browsing the web for money-saving tips can be, admittedly, a bit overwhelming. Blogs filled with elaborate DIY projects, 365 days of “freezer foods” and coupon-fueled stockpiles can make you feel like you don’t quite have what it takes to be a frugal family. If you’ve ever found yourself feeling this way, don’t worry! We’re dishing out easy, doable ways to make the most of your money (just like the best of those extravagant Pinterest posts!).

Starting a Budget

You know you need to cut your expenses, but you’re not sure where to start. This is a common dilemma for first-time budgeters (and even budgeting vets!). Start by analyzing your purchases for a month or two. Are you shelling out half your paycheck on food? Spending too much catching weekend flicks at the theater? Your spending habits should become evident pretty quickly.

Once you’ve completed your observational budget, you can start finding places to trim. Cut back on luxuries, like restaurant meals and excess entertainment. Just don’t try to cut out all the fun – the goal is to save, not to be miserable!

A successful budget doesn’t happen overnight, but with some fine-tuning, it can certainly be within reach. Use the Emerge Budgeting Worksheet to get a head start on creating yours!

Saving on Meals

Food is one of the biggest expenses for families, so it’s important to make sure you’re keeping costs under control. Skip the fast food and fancy dinners as often as you can and opt for home-cooked meals instead. Creating a meal plan at the beginning of each week takes the guesswork out of dinnertime and saves you money at the grocery store. Kids can help you pick out what you’ll be serving for the week (and they may even want to help cook!).

Coupons, weekly sales and just being choosy about where you shop are a few additional strategies that can help you cut costs. We share even more tips here on how to make your next grocery trip your best yet.

Drop Your Bills

A few small changes can make a big difference on your utility bills over time. Teach kids the importance of limiting water usage, turning off the lights and unplugging electronics when they’re finished. Energy Star makes it fun and easy for kids to learn about conserving, and these are habits that they’ll keep with them indefinitely.

Vacations on a Budget

Vacations are a great way to relax, unwind and spend some valuable time with the family. They can also be a huge expense – but they don’t have to be. Live in a city? Make your next vacation a stay-cation and find fun things to do nearby. If you just need to get away, choose a destination within driving distance to avoid costly airfare.

Dreaming of sunny skies and sand between your toes? Beach vacations can actually be quite affordable if you plan them well. Instead of spending your vacation budget at pricey tourist attractions, you can hang out at the beach and make your own fun with the whole family. Pack a picnic to enjoy (just don’t get sand in your sandwich!) during the day to slash your food costs. You could even share housing with another family, as vacation homes are often more affordable than hotels.

Saving: Fun for the Whole Family

Saving is easier and much more fun when the whole family gets involved. Put a piggy bank in a well-traveled spot (the living room is a great choice) and encourage everyone to toss in his or her spare change. Make sure the kids see you contributing, too – the best way for them to learn is by your positive example!

Just demonstrating frugality as a way of life is essential to helping your kids learn personal finance skills. If you continue teaching them ways to save, living within their means will come naturally. And that’s a lesson that will last a lifetime.

3 Easy Ways to Save at the Checkout Lane

Did the receipt from your latest trip to the grocery store make you cringe? Although necessary to a budget, food expenses can be cumbersome. If you’re looking to save some dough the next time you’re in the checkout lane, here are a few tips to make your next trip to the store a success.

Be a Coupon Clipper

You don’t have to buy industrial shelving or 30 copies of the Sunday paper to clip coupons. While the initial savings may seem small, they add up over time. Browse the coupon inserts for items you purchase frequently, and use online coupon sites to find even more savings. Avoid over-clipping for things you don’t really need – you don’t have to buy something just because you have a coupon.

To maximize savings, match up your coupons with weekly sales at the grocery store. You should receive grocery circulars along with the coupon inserts, so matching is usually quite easy. Make sure to write a note on your grocery list so you don’t forget to hand over those coupons!

Make a Meal Plan

Creating a meal plan for your family will save you money and time at the grocery store. Write out your meals ahead of time, including any packed lunches or snacks, and then itemize each ingredient you’ll need to pick up. This gives you a clear plan for your shopping trip and prevents you from purchasing something you already have or don’t need. This strategy also keeps you from making impulse purchases, as long as you resign yourself to only buying what’s on the list.

When creating your plan, consider what’s on sale for the week. If a certain ingredient is priced at a bargain, consider a few ways you could incorporate it into your meals, and then stock up.

Stick to the Budget

It’s easy to pick up things you don’t need at the grocery store, especially because they’re designed for just that. The product displays, checkout lanes, and even the store layout as a whole are carefully crafted to encourage you to buy more. You can fight back, however, by giving yourself a strict budget and shopping with a purpose.

Instead of using your credit card at the store, take an envelope of cash with only the amount you need for the items on your list. This way, you won’t be able to find “wiggle room” for that candy bar at the checkout – you’ll just have to put it back. It can be tough to get used to, but your wallet (and waistline!) will thank you.

Whether you’re planning for a family of four or just yourself, organizing your grocery bill can take a big strain off of your budget. Use these tips to make the most of your money and get the best bang for your buck!

Summer Fun on a Budget

The long, hot days of summer are a great time to get outside, have fun and socialize with family and friends. It’s no secret, however, that the sunniest season can be a trying time for your budget. If you’re hoping to make the most of the summertime without breaking the bank, take a look at our ideas for frugal fun.

Gather for Less

When you’re hanging with friends or celebrating a family gathering, going out to eat is typically in the cards. Restaurants are also notoriously budget-unfriendly; so consider ways to trim the cost of a meal out. Heading in before the dinner rush could save you on an entrée, and taking advantage of happy hour can really drive down that bar tab. Some restaurants even have a discounted late-night menu, which just goes to show that shifting the time of your outing can equal big savings.

Simply redefining what “going out” means can save you money when the check arrives, too. Instead of indulging in a three-course meal, just share an appetizer or entrée with your partner or a friend. Since portion sizes are so large to begin with, you’ll still feel full and can always eat a small meal at home later.

Staying in is the new going out! If your next gathering is close to home, invite everyone over for a potluck and let the good times roll. Not only will you skip the waiting and markups at the restaurant, you’ll also have a wide variety of dishes without the big grocery bill.

Fun for the Kids

Kids home for the summer? Keep them entertained on the cheap with free or low-cost events around town. Free children’s festivals are abundant throughout the summer, so listen for the buzz on these local happenings. Some movie theaters show older kids’ films for just a dollar or two throughout the week, and many museums host free and reduced-price days for the little ones, too. Ask around and keep an eye on social media for event announcements.

Family Outings on a Dime

Out and about with the whole family? There are so many things you can do on a small budget. Scope out a local farm and do some berry picking – PickYourOwn.org is a great resource for finding farms near you. Take the family out for a picnic (spots to throw down that checkered blanket are nearly endless!) or head off for a lazy day at the beach. You could take little ones to a quintessential children’s spot — the zoo –or spend a day hiking in a state park or nature preserve. If you’re feeling really adventurous, you might plan out a weekend camping trip – although we won’t tell anyone if you just put up a tent in your back yard.

Staying in

Some days, you just want to stay hunkered down at home. If it’s one of those, stock up on citrus and let your kids open up their very own lemonade stand. This one’s a double whammy since it can be a valuable lesson in money management, too! If your kiddos aren’t the entrepreneurial type, you can always beat the heat by hooking up a sprinkler and letting them run wild. Feeling creative? Send them on a scavenger hunt around the house, or even team up with a few neighbors and scale your efforts. If you’re just feeling something simple, a classic movie night (complete with buttered popcorn, of course) is always a good time.

10 Ways to Stay Healthy on a Budget

Living a healthy lifestyle doesn’t have to mean sipping $8 designer juices outside your trendy (read: expensive) yoga class. While research from the Harvard School of Public Health does suggest that eating healthy can cost about $1.50 more each day, there are many ways to trim costs and keep healthy living affordable. Becoming more health-conscious on a budget is totally doable, and we’ll show you how.

Get Technical

There’s an app for everything, right? When it comes to maintaining a healthy lifestyle, there are loads of apps to help you stay on track. Don’t shell out a fortune on a dietician or a personal trainer – free apps like MyFitnessPal, Fitstar, Noom Coach, and FitNet can help you assess your personal needs and set you down a healthier path.

If you’re a fan of the blogosphere, there are countless blogs written for people trying to find that perfect balance between budgeting and healthy living. Find a blogger that speaks to you. Whether they share workouts, recipes, or just tips on general wellness, reading their posts on the reg can keep your goals top-of-mind.

Plan Ahead

Taking a little time each week to plan your upcoming meals can make a huge difference in how you consume goods in your household. Take a look at what’s on sale for the coming week, and then use those items as inspiration for your recipes. Once you’ve determined what you’ll be having, you can itemize each ingredient that you don’t already have in your pantry. Voila – there’s your shopping list for the week.

Meal planning is smart for so many reasons. It saves you time and money at the grocery store, reduces impulse buys, and takes the guesswork out of dinnertime. When you’re in a pinch, it’s easy to spring for overpriced convenience foods, but a bit of forethought will keep you prepared and away from the drive-through.

Change Up Your Plate

Eating healthfully and frugally may require you to change your perspective on the food you eat. Although meat is a great source of protein, it can also be expensive. You may consider buying cheaper cuts and preparing them in a slow cooker, creating a tender, flavorful dish for less. And while you know you should be eating plenty of fruits and veggies, actually getting them onto your plate is the important part.

Rather than focusing on taking away unhealthy foods, try to concentrate on adding healthy foods to your meal. Produce, whole grains and low-fat dairy are all good options for your family dinner. Research healthy meals and have fun deciding what to make together.

Know Your Produce

Eating fresh produce is an essential part of a healthy diet, however, there may be some scary truths hiding in those perfectly aligned rows of fruits and veggies at the supermarket. Many popular food items, such as apples and potatoes, can contain high levels of potentially harmful pesticides. The EWG’s Dirty Dozen list is helpful for those hoping to avoid those pesky pesticides by recommending which foods to buy organic. Their Clean Fifteen list also highlights produce that’s okay to buy in the non-organic variety, so you know where your extra dollars should go – and where they shouldn’t.

Shop Local

For many components of your healthy eating, you can say buh-bye to the big box stores and hello to locally sourced foods. Shopping at your local farmers’ market weekly will allow you to keep fresh produce on the table without the grocery store markup. You’ll also be supporting local growers and you’ll know exactly where your food is coming from.

Local foods aren’t limited to just fruits and veggies. Butcher shops and livestock farmers are excellent sources of fresh meat, eggs and dairy products. Use sites like EatWild to find farms near you.

Freeze it

So, you’ve stocked up on those in-season veggies and a few big cuts of meat – now what? Your freezer is your new best friend! Freezing foods you’ve purchased in bulk will extend their life and allows you to enjoy seasonal items year-round.

Your freezer will also come in handy for saving extra meal portions. Cooking large batches of food and freezing later will cut down on the cost per serving and also saves you time on future meal prep. Casseroles, soups and chili are crazy easy to make in large helpings, and they freeze well, too. Don’t limit yourself, however – think about the meals your family eats most often and go from there.

Keeping your freezer organized is key in storing foods. You’ll want to label meals along with the date prepared so you know just how long you’ve had that casserole (or was that a cobbler?). Use stackable containers and freezer bags to ensure your food is orderly and easily accessible.

Go Alternative

If you’re paying for a pricy gym membership, you may want to reconsider where your fitness dollars are going. While memberships can get you motivated to pump some iron, they may be eating away at your budget. Consider nixing the monthly fee and doing workouts at home – there are countless videos, guides and blogs curated for just that. Repetitive workouts are no longer a thing, as you can switch it up anytime you like!

Rethink Your Drink

It’s no secret that sodas and other sugary beverages are loaded up with all kinds of junk, but sometimes, even bottles slapped with a “healthy” label can have some secrets. Sports and energy drinks are often filled with sugar and calories, and unless you’re doing a major workout, you’re probably still burning less than you’re taking in. Do your wallet (and your waistline!) a favor and opt for water instead. Buy a BPA-free reusable bottle and bring it along wherever you go. The one-time cost will save you lots over time, especially if you frequently purchase bottled water and other pre-packaged drinks.

Life’s a Garden

Give your green thumb a go by growing some produce of your own. If that seems like a stretch, start by keeping an herb garden with seasonings you use often. Once you’re comfortable with it (and have proven you can keep your plants alive), try planting some of your favorite fruits and veggies. Better Homes and Gardens has a great guide on gardening for beginners.

An inexpensive starter plant or pack of seeds coupled with a little TLC can drastically reduce your grocery costs. Plus, growing your own food is super rewarding on its own!

Reuse & Repurpose

Leftovers are often met with some hesitation (especially from little ones), but they’re a great way to get the most out of your meal prep. You can also repurpose those leftovers to make new meals, like incorporating meats into new dishes or making a salad from ingredients left in the fridge. If you have fruit that’s a little too ripe, toss it in the blender with some ice & yogurt to make a tasty smoothie. Get creative – it’s fun, and it’ll save you money!

4 Ways to Save Money on Clothes

Strolling through your local shopping mall, it may seem that staying on-trend can cost a pretty penny. While freshening up your wardrobe can be both a necessity and a treat, it doesn’t have to break the bank. Curious? Read on to see four of our favorite ways to save on apparel.

Thrifting: 21^st Century Style

One of the most obvious answers to saving money on clothes is thrifting. But once you’ve scoured all the racks at your local secondhand store and the garage sales have packed up for the season, where can you turn? Luckily, with an abundance of online resources, you still have options.

Sites like eBay, thredUP, Twice and many others are goldmines for gently worn, high-quality clothing. You can filter by brand, size, style, color, price range – anything! You could even search for the exact shirt you passed up at the store last week. It’s a great way to find nice clothing at a fraction of the cost.

Sales + Coupons = More Savings

Sales are tricky things – designed to make us buy under the guise that we’re getting a good deal. This means we have to be careful when we’re scouting for savings to ensure we’re truly getting a fair price. One of the best ways to secure the best value on an item is to employ a grocery savings tip – combining sales with coupons.

Whether you’re shopping online or in-store, there’s almost always a coupon out there for a certain percentage off your order. When you use this in conjunction with a sale, you’ve got the perfect recipe for savings. When buying online, RetailMeNot is an excellent source of coupon codes, so always be sure to check before you skip the promo code box at checkout. Some brands even put codes on their social media pages or partner websites, so it’s helpful to click around a few different places before finalizing your order.

So, you’ve found something you’d like to buy, but you don’t want to keep checking for a sale on the reg – what should you do? Some retailers have built-in price tracking tools, but sites like Rack it Up will also do the grunt work for you. They’ll shoot you an email when your item is on sale, so it’s easier than ever to save on your wish list.

Spend More

When you’re trying to save money on clothes, spending more may sound like quite the contradiction. But, when you pay a little more initially for a high quality item, you’ll spend less in long-term replacements and repairs. Certain pieces, like jeans, tees and outerwear, are timeless basics that will always have a place in your wardrobe. A small price tag may make it tempting to purchase from a low-end retailer, but spending a little extra for a well-crafted item will truly pay off over time.

Capsule Wardrobe

Ever heard of a capsule wardrobe? It’s essentially a mix-and-match set of clothing that’s interchangeable to create a wide variety of outfits and looks. Capsule wardrobes are focused around a few main coordinating colors, which are often predominately neutral.

Building a capsule wardrobe can be an effective way to trim clothing expenses and reduce impulse buys. While it can have expensive startup costs, depending on what’s already in your closet, it’s another venture that may just pay for itself as you move forward. Get inspiration for your own capsule wardrobe here.

Nine Ways to Boost the Value of Your Home on a Budget

Whether you’re sprucing up your home to sell in the competitive summer real estate market, investing your tax return in some overdue repairs, or just giving your space a fresh new look, keeping costs reasonable may feel like an impossible feat. Luckily, you can still make a big impact by investing in a few simple upgrades that’ll keep your bank account at a comfortable level. Read on for nine inexpensive ways to boost the value of your home.

Curb Appeal

Impressions begin with the first look, so it’s important that your home looks fresh and well kept from the outside. Keep the lawn tidy and make sure all trees and shrubs are trimmed. If the exterior of your home is looking a little grimy, an afternoon with a pressure washer can really make it shine. If the paint itself is a little tired, a fresh coat can truly brighten up the whole block.

Charming Entry

Once guests or prospective buyers have decided they’re impressed with the exterior of your home, it’s time to ensure they feel the same about the inside. Make sure your front door has a nice set of hardware and a good coat of paint or stain. Take some time to give the entry a deep clean so the space looks fresh and inviting.

Break Out the Paint

When you’re in need of a quick change, a fresh coat of paint can certainly get the job done. Whether it’s an all-over color or just an accent wall, painting can totally transform a room.

Hit the Lights

Poor lighting can make your space look tired and unwelcoming. Simply opening the blinds can brighten up your home, but updating old fixtures and dim bulbs can make a lasting difference. New lighting isn’t costly, and a brighter bulb can bring definition to a room that’s lacking.

Keeping Up with the Kitchen

Often, the room in need of the most updating is the kitchen. Total transformations can cost thousands, but a few smaller updates can still have a big impact at a fraction of the cost. Painting older cabinets a modern color and installing new fixtures are just two easy ways to update on a dime. Adding a backsplash and coordinating your appliance colors can totally tie the whole room together.

A Better Bathroom

In addition to the kitchen, bathrooms are typically quite easy to update on a small budget. A few new fixtures can totally transform a dated restroom – even just a new towel rack and mirror can give a tired room new life. For an even greater “wow” factor, upgrade the sink to a more modern style and give old tile a makeover. Make your existing shower feel like a luxury spa with a rain-style showerhead – there are many affordable models that are easy to install on your own.

Cut the Clutter

Don’t have the cash to do lots of updating? Take a look around your home and think about what items you could do without. A cluttered home can make you, your guests and prospective buyers feel overwhelmed. Get rid of unused, unwanted items for an easy (and free!) way to clean up your humble abode.

Fix it Up

Leaky faucet? Burnt out bulb? Small fixes are easy to put off, but taking a day to knock them out will be a major relief. Make a list of DIY updates and finally check off those honey-do’s.

Energy Efficiency

Energy-efficient upgrades aren’t just trendy – they can do wonders for your utility bills and make a home that much more appealing to buyers. For a quick, inexpensive update, start by swapping incandescent light bulbs for LED or CFL bulbs. Plug up any heating and cooling leaks around windows, doors or other drafty areas. If you’ve got extra cash in your budget, upgrading to energy-efficient appliances can offer a lifetime of savings on bills.

Easy Ways to Go Green (and Save Some Green!)

This planet of ours certainly has a lot to give, and Earth Day is one of the best opportunities to give back. Living a more eco-friendly lifestyle is not only good for the environment – it can be good for your wallet, too! We’ve shared a few of our favorite ways to go green while saving some green.

Cut the Lights

If you don’t already flip the switch when you leave the room, now is a great time to make it a habit! While you’re at it, swapping incandescent bulbs for compact fluorescent lights can be a money-saver and an energy-saver. Even better — when it’s bright outside, open the shades and let some sunlight in to keep your home illuminated.

While you don’t have to break out a washboard and soap to do the laundry, you can save some energy by line-drying your clothes once they’ve been washed. You’ll increase the longevity of your favorite apparel and keep high energy bills at bay.

Spending Leaks

We know showers are a time of personal reflection and hatching brilliant ideas, but speeding up that lather and rinse can save you money on the water bill. Also, be sure to turn off the tap when you’re brushing your teeth or scrubbing dishes. Although water may feel like it’s an abundant resource (after all, it never stops running out of the faucet until you turn it off), it’s not as limitless as it may appear.

When you need some extra water, but don’t want to turn on the tap, consider setting up a barrel to catch rain – it can be great for washing the car or watering those indoor plants.

Reduce, Reuse

In a consumer-driven culture, we often find ourselves with much more “stuff” than we actually need. Instead of shopping for new clothes, organize a swap with other families and see how much you can repurpose. You can also donate unwanted items to help others in need and reduce potential landfill waste.

That one-time-use coffee pod may be handy, but is it good for the environment? It seems as if everything now has a disposable counterpart, but it’s always best to purchase reusable products when possible. Food storage, water bottles and bags are all items available in reusable form – saving you money and saving the planet at the same time.

Get Going, Go Green

We’re busy people. Always on the move; always somewhere else to be. All that travel usually means lots of time on the road – but it doesn’t have to be behind the wheel. Instead of driving everywhere, try walking or biking to your destination. Most major cities offer a robust public transit offering, so you could even take the train or bus when you need to get out and about. If driving is a must, at least see if you have a friend or coworker going the same way – carpooling is great for saving gas and money, and you might even get special privilege to use the HOV lane!

Tackle Financial Stress and Improve Your Health

Feeling stressed? We can all get a little frazzled from time to time, and now there’s an entire month dedicated to stress management and understanding. April 16 is celebrated as National Stress Awareness Day (we think it’s no coincidence it falls just a day after Tax Day), so we’re calling attention to the negative effects of financial stress in hopes that others can take a step toward improving their physical health by becoming more financially fit.

So, what’s happening when our finances have us stressed? When we’re constantly worrying about making it until next payday or struggling to pay down debt, those figurative “headaches” turn into literal headaches – increasing chances of suffering from migraines to 44%, according to a study by Purchasing Power. That same study found an even more startling statistic – all that pressure can cause a 500% increase in anxiety and depression; plus we’re two times more likely to experience a heart attack and three times more likely to suffer from ulcers or digestive issues as a result of that stress.

Stressing about money ultimately leads to even more trouble when we consider that those health problems invite hefty medical bills. It becomes a vicious cycle that can be difficult from which to break free. Those complications can also cause unexpected absences from work or school and shift your focus from what’s most important. Financial stress doesn’t go away when you leave the bank or close the checkbook, but you can learn to manage it.

It may sound cliché, but when you start feeling stressed, stop for a moment and just take a deep breath. Remind yourself to relax and try to have a laugh. It may feel unnatural at first, but you ultimately have the power to change your outlook. Treat yourself to immune-boosting snacks like blueberries, strawberries, whole grains or honey – even chocolate can be great for busting stress (in moderation, of course).

As for long-term changes, consider meditating and exercising more frequently. They’re both natural stress-busters that provide you with more energy and keep you feeling good, even when those little stressors are trying to take you down. Get to bed at a decent time each night and try to snooze for 7-10 hours. You’ll be more alert and better equipped in your day-to-day life.

Of course, you can’t get rid of financial stress by making lifestyle changes that totally ignore your money matters. Make a point to organize your financial life and determine what’s troubling you the most. Once you’ve identified those key stressors, you can make a real plan to tackle them and get back on track. Seek out the help of a coach if need be – they can help you deal with those big issues and toss that anxiety by the wayside.

Financial stress shouldn’t be anyone’s downfall. A few small changes can make a big difference in the way you deal with your anxiety … and your wallet. Always keep in mind that you’re in control of your money – it’s not the other way around!

Don’t be a “Fool” with Your Finances!

April Fool’s is a day for tricks and surprises, but when it comes to your money, a mismanaged wallet is certainly no laughing matter! In honor of the holiday dedicated to pranksters, we’ve shared five ways to avoid being a “fool” with your finances.

Save for Retirement

Unless you plan to work forever, you’ll need to put money away for your golden years. While saving money can be tough — especially when you’re already on a tight budget — those savings are fundamental to a comfortable retirement. If your employer offers a 401(k) match program, the even bigger mistake is leaving free money on the table. Start contributing to your plan, and make sure you’re at least meeting the company match.

Have a Debt Repayment Plan

Paying down a few credit cards and loans? Having a defined repayment plan is a must when managing your debt. Consider various debt repayment strategies, and then be sure to write down your action plan. Whether it’s tackling that high interest rate, or just knocking out that credit card with a low balance, having a set strategy will focus your efforts and is likely to save you some money in interest!

Don’t Pay for What You Don’t Use

Unused data on your cell phone bill, 300 channels with nothing on – sound familiar? You may be paying for expenses that you don’t even use! Take a close look at your cable, internet and cell phone bills to see if your hard-earned cash is going to waste. If you have other subscriptions, like magazines or newspapers, you might consider nixing those, too. Even if it’s only a few extra bucks a month, those can add up over time!

Keep Your Bank Account in the Black

This might sound like a no-brainer, but overdrafts happen all the time. Avoid those outrageous bank fees by keeping an eye on that balance. You can even set up alerts through your bank or third-party apps that let you know when your funds are getting low. With so many services out there to help, there’s no reason to get slapped with a returned check fee or overdraft charge.

Do a Daily Money Minute

Your money isn’t intuitive on its own – so never let it go on “autopilot!” Set aside a few minutes each day to review your accounts and ensure that all is as it should be. Taking a moment to do this will allow you to catch anything fishy with your money, like fraudulent charges or a low balance. You’ll always know just how much you have, and you’ll be prepared for anything!

10 Wise Ways to Spend that Tax Refund

With just weeks left until completed tax returns are due, many people are already cooking up ideas as to how they’ll use their refund check this year. While it may be tempting to take a lavish tropical vacation or buy a shiny new car, there are many other ways to use your refund that can improve your long-term financial stability. Take a look at our list of ten ways to wisely spend your tax refund this year.

1. Invest in Retirement

Whether you have a 401(k) through your employer, an individual retirement account or another way of saving for your golden years, putting some of that refund money toward retirement will pay off in the long run. With many retirement accounts seeing high returns, it’s a great time to build up your nest egg.

2. Start a Rainy Day Fund

… or add more to your existing fund! Ideally, you should have six to nine months’ worth of expenses saved, but it’s no secret that this can take a while to build up. Using your refund to boost those emergency savings can really pad that account – and you’ll thank yourself when the unexpected happens.

3. Pay Down Debt

Credit cards or student loans bogging you down? Relieve some of that financial stress and put your refund toward paying down those debts. While putting money in savings is important, high-interest debt can counteract those efforts. Your refund can be a great opportunity to get those balances down so you can start putting more in savings.

4. Get Serious About Saving

We’ll bet you have more than just one savings goal – so why put all your money in one place? Itemizing your savings is an excellent way to track how much you’re saving for each of your goals. Whether you split your money between different accounts or just use an online tool to break it all down, using your tax refund in this way can really jumpstart those savings.

5. Get an Education

Whether you’re planning to further your education or save for your child’s schooling, using your tax refund can be a good way to take advantage of 529 Savings Plans. An education is an investment that will last a lifetime, but the cost of attending college is only going up. Saving now will give you an advantage when that first semester rolls around.

6. Invest in the Essentials

Have you been putting off some necessary expenses, like a new set of tires or a trip to the dentist? Use some of your tax refund to take care of those needs so you can finally cross them off your list. Similarly, if you have an irregular income, you may also consider stocking up on some routine essentials like toothpaste and toilet paper. If money is tight during the year, you know you’ll still be able to provide the necessities for you and your family (and they’re cheaper to buy in bulk!).

7. Make a Donation

When you’re on a tight budget, charitable donations can often fall by the wayside. If you’re hoping to give back in the near future, your tax refund can provide a great means to do so. Choose a cause you’re passionate about, and don’t forget to claim the tax deduction next year.

8. Start a Business

Dreaming of being your own boss? Want to generate some extra income on the side? Your refund can jumpstart your entrepreneurial dreams and make them a reality. A little extra cash is a great opportunity to get your venture moving in the right direction, generate more income, and claim some small business tax deductions on next year’s return.

9. Update Your Home

A few updates to your home can be a great way to express yourself while also adding instant value to the home. Whether you need a new roof, a touch of modernity to your kitchen, or some energy-efficient upgrades, a home improvement project may be just the right fit for your tax refund dollars this year.

10. Treat Yourself

If you still have some of your refund available and feel comfortable with your financial situation, it’s okay to splurge a little. A summer getaway with your family or a nice dinner can be a great way to have fun with your extra cash — just be smart with what you have and don’t allow yourself to get carried away. Enjoy!