What will you do with your Tax Refund?

As Ryne and I prepare our taxes, we are in debt of what we should do with our tax refund.  Last year, we used our return to put on a down payment of a new vehicle.  The year before we used that money to go on vacation.  This year is a different story.

As we look at our financial situation and the debt we owe, we are just tired of owing others.  We want to be debt free and be financially comfortable.  We have a couple of options of what we can do, but no matter what it is, we are going to pay off something.

Once have one of our debts paid off, we will be looking at putting that money into a Snowball Effect. We have two two serious options that we are looking a 1. the monthly payment is $43 or 2. the monthly payment is $125.  A no-brainer would be saying pay off the $125 debt.  Well, it will all depend on the amount of refund.  The payoff of the $125 dollar debt is twice the amount of the $43 debt.

Regardless, we will have $43 or $125 to put in toward our next debt that we would like to pay off. The challenge is to make sure that money with going towards debt, not other daily expense. One trick that I use it on my budget form is to add the overage, in this case, $43 or $125, and add it to the monthly minimum right away.

I know that I am just excited to get something paid off,  A small accomplishment can make a huge weight feel like it came off our shoulders.