Smart Ways to Spend your Tax Return
April 15 has passed which means your taxes are filed away for the IRS to review The biggest disappointment following tax season is learning that you owe money to the IRS, but when the IRS pays you it can be a huge day for your bank account. Not so fast! The hardest part is not spending it all at once when the return hits your pockets. Splurging on unnecessary items is what you should avoid when you get extra money from taxes. Here are smart ways to spend your tax refund without being wasteful.
A small sum of money goes a long way so whether your refund is just a few dollars or a few hundred dollars, consider donating to a charitable cause. Not only will the charity be gracious for your donation, but you can feel a sense of pride in knowing your money is helping someone else.
Make Home Improvements
As a real estate brokerage, we have to say it. Invest your money into improving your home! The homeowners who are planning to buy or sell soon should consider starting a project they’ve been putting off or hiring someone who can get the job done quicker.
For all the finance gurus of the world who own a plethora of stock, this idea is nothing new. Investing your tax refund into a stock could grow your money if you really know what you’re doing. Do your homework first and check out what stocks you should invest in before you choose to go this route.
Feed your Emergency Fund
The emergency fund is a quintessential idea for those who find themselves making impulse purchases. This fund is one that you don’t touch unless there is an absolute emergency. Adding tax refund money into this emergency fund will get you closer to your goal of saving 3 months worth of expenses.
Pay off Debt
Debt is a priority over unnecessary purchases many make with their tax return money. No matter how much debt you have to pay off, it’s always a smart idea to put extra money into getting yourself out of that sticky situation. You’ll thank yourself a few months from now when you’re debt free!
Start a Side Hustle
All of the business men and women who are stuck at their day job dreaming of pursuing their passion in life will appreciate this tax return investment. Invest in your passion or hobby by making it a side hustle with the potential to grow into something bigger than your day job. By seeding your dream company with this money, you may see potential in yourself you’ve never seen before.
Whether you invest in yourself, your bank account or your home, tax refunds are a great place to start. For those who aren’t so lucky this year as to get paid by the IRS, work on fine tuning those finances so you can get that extra bonus from the government next year. Happy tax return season!