genesis domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /services/webpages/f/i/financialpsychologycenter.com/public/wp-includes/functions.php on line 6114It\u2019s tax return season and that means a significant amount of money may be heading your way! American average tax refund for the 2020 tax year<\/a> was $2,827, with 91% of the refunds coming through direct deposit.<\/p>\n Direct deposit is convenient, but it also makes it easy to forget about your incoming tax refund. Thankfully, if you plan out your spending, you can stretch your tax refund to accomplish one or more of your goals.<\/p>\n It\u2019s all about mindful spending.<\/p>\n Simply put, mindful spending is being aware of how you use your money. This includes how, when, where, and why you\u2019re utilizing your funds. It\u2019s not about stopping spending. Instead, it\u2019s making sure you\u2019re fully present in your financial decisions.<\/p>\n With today\u2019s technology, it\u2019s easy to spend money without much thought. As Derek Hagen, founder of Money Health Solutions notes, \u201cthere should be a slight sting that happens when we spend our money. This is largely gone. When we link an account to an online store or app, we\u2019re not aware of our spending.\u201d<\/p>\n Here are three steps to get you started on your mindfulness journey.<\/p>\n Kick off your financial mindfulness by assessing your current behaviors. Hagen recommends using an account aggregator tool to link your accounts and see them all in one place. One example is Axos Bank\u2019s Personal Finance Ask for physical or emailed receipts. \u201cOnce you have the receipt, you can consciously look at the amount and mentally note how much you spent and what you spent it on,\u201d said Hagen. \u201cThe point isn\u2019t to judge or interpret; the point is simply to be more aware.\u201d<\/p>\n Wait a moment before you spend. Dr. Alex Melkumian, founder of Financial Psychology Center<\/a> in Los Angeles, recommends asking yourself the following before each transaction, big or small: \u201cWhat state of mind are you in? Are you impulse buying to satisfy an emotional need? Are you overspending to impress your community?\u201d<\/p>\n Wait 24 hours to make that purchase. If it\u2019s no longer top of mind, perhaps you can do without.<\/p>\n Your tax refund is a great opportunity to put mindful spending into practice. Whether you\u2019re looking to buy something fun, cover practical expenses, or add to your savings, think about how your choices work into your overall financial picture.<\/p>\n It\u2019s fun to reward yourself for your hard work. Your tax refund gives an opportunity to purchase something you\u2019ve been eyeing or earmark the funds for an ongoing treat. Let\u2019s say you receive a $2,800 tax refund and live in an area with 7.75% sales tax. You could use your refund to purchase:<\/p>\n Some expenses aren\u2019t as fun. But it\u2019s gratifying to know they can be paid without having to dip into savings. For example:<\/p>\n If you\u2019ve noticed your saving has tapered off, you may want to use your refund to create a new habit. This Choosing the right account can make a noticeable difference. Take advantage of high-yield savings<\/a>\u00a0and You\u2019ll also want to check in regularly to assess how you\u2019re doing. \u201cYour financial perceptions will change over time,\u201d said Melkumian. \u201cIt\u2019s good to check in on your perceptions of your financial situation throughout the year.\u201d<\/p>\nWhat Is Mindful Spending?<\/h2>\n
How to Practice Mindful Spending<\/h2>\n
1. Detect Spending Trends<\/h3>\n
\nManager<\/a> (PFM), where you can view all your accounts in one dashboard. Tools like PFM give a holistic view of your accounts so you can monitor your overall spending and savings habits.<\/p>\n2. Review Each Transaction<\/h3>\n
3. Pause Before You Purchase<\/h3>\n
Applying Mindful Spending to Your Tax Refund<\/h2>\n
1. Fun Purchases<\/h3>\n
\n
2. Practical Spending<\/h3>\n
\n
3. Prudent Savings<\/h3>\n
\ncould include:<\/p>\n\n
\naccount (IRA)<\/a>.<\/li>\nMake Your Tax Refund Stretch Even Further<\/h2>\n
\nrewards checking<\/a> accounts to keep your tax refund money accessible while helping it grow. You may also consider a debt consolidation loan<\/a> to reduce the interest paid on any credit card or other high-interest debt you\u2019re not able to wipe out with this year\u2019s tax refund.<\/p>\n