To shop recklessly when suddenly having extra cash can be tempting.
It's understandable. The brain seeks quick dopamine kicks and we're triggered to consume here and now, says Ica's savings economist Magnus Hjelmér, who, however, advises against it.
He emphasizes that it's still tough economically and that the tax refund should be seen as part of the total economy, not as extra money. Number one is to review one's interest expenses, he means.
Interest Expenses
You need to be vigilant about high-interest loans. They take up a lot of space and make it hard to save. Amortizing when you have the opportunity is therefore a good idea, says Hjelmér.
He also reminds us that the interest deduction for high-interest loans, i.e., loans without collateral, will be halved before the next tax return and then abolished altogether. This means it's a good idea to plan ahead so you don't risk a tax shock next year.
Number two is the sacred buffer for savings economists, according to Hjelmér.
Many have eaten into their buffer during tougher times, but a buffer is important because it makes us less sensitive to the unexpected.
To get an idea of how big a buffer you need, you should look at expenses – rather than income.
Someone who rents can have 1-2 months' expenses as a benchmark, while for a condominium owner it's reasonable with 2-3 months' expenses, and for a homeowner with 3-4, says Hjelmér.
Savings Account
Having long-term savings on the stock market as a buffer is not recommended.
Your buffer should be on a savings account. It has become extra clear in days like these when the stock market falls, says he and continues:
A long-term savings should also be a monthly savings, rather than a larger one-time deposit on the stock market, since it's hard to time the market.
After expensive loans and buffers have been checked off, it may be time to think about other loans.
An extra amortization on any mortgage is not a bad idea. It can actually make a pretty big difference. Student loans, on the other hand, are the last loans we should focus on, since they are so favorable, says Hjelmér.
Can't we treat ourselves to anything then?
Of course, we should treat ourselves. If you feel secure with the points above, you can, for example, top up your vacation fund. But don't burn everything. The foundation of personal finance is to manage risks before they actually occur.
When the Tax Authority has decided on the final tax, the money is paid out as a general rule within a week.
8-11 April: Those who have approved their tax return digitally by 2 April, without making any changes or additions, will receive their tax refund.
3-5 June: Those who have filed their tax return by 2 May will receive their tax refund.
5-8 August: Those who have not received a final tax assessment in April or June, for example due to an extension to file, will receive their tax refund.
9-12 December: Those who have not previously received a final tax assessment or lack tax registration in Sweden will receive their tax refund.
If the tax refund doesn't show up as expected, it may be because the Tax Authority needs to review the tax return.
Source: The Tax Authority
