What’s going on folks? It’s that time of the year. It’s tax season. Are you ready? I’ve had times where I received big refunds before. I’ve also owed money. Everybody’s situation is different. Many people in the country choose not to get a refund. If you plan on receiving one, then this post is for you. Below are five good uses for your tax refund.
Pay off debt
If you get a large enough refund back, you can pay off some debt. For some, this refund comes right on time. You can apply the money to any of your debts including credit cards or student loans. One year, I was able to pay off a personal loan a few months early because of the tax refund that I received. Every extra payment helps you eliminate the debt. Even if you don’t want to use all of the money to pay off debt, you should at least use a couple hundred off it for that.
The second thing that you can do with your tax refund is to save it. Everyone should have some savings. Things happen that are out of our control from time to time. You need an emergency fund. If you don’t have one, use the money from your tax refund to help you fund it. If you already have an emergency fund, you can cushion your savings or checking account. You can also save for other things such as a new vehicle, a new house or birthday gifts for your family.
Another thing you can do with your tax refund is to invest it. If I received a large refund, this would be something that I’d consider doing. You could take some of the money and invest in bonds or mutual funds. Depending on how much you get back you can take it up a notch. You could invest in stocks or small real estate. Investing is a way for you to continue to grow your money. If you’re interested in learning more about investing, check out Investopedia. They have a lot of useful information on that site. They even have a free stock simulator that you can sign up for.
Plan a vacation
If you’ve been reading this site for a while, you know that I love to travel. It is my anti-drug. Everyone needs a vacation from time to time. Another use for your tax refund is to book a vacation. Your vacation does not have to be expensive either. There are numerous websites to help you book your trips such as Priceline, Hotwire or Orbitz. On those sites, you can compare airfare and hotels. If hotels aren’t your thing, you can use a website like Airbnb. Depending on where you’re going, a room on Airbnb could be cheaper than a hotel room. You can even get a $35 off of your first booking with Airbnb. Check here for more details.
The final way that you can use your tax refund money is to fix something. Things get old and break every once in awhile. You can use the extra money on your house or car maintenance or repairs. For example, if you know the AC in your vehicle doesn’t work, use these funds to fix it. It’s better to take car of that now than to wait until it is scorching outside.
Those are just a few things that you can do with your tax return refund. I can’t tell you how to spend your money, but I hope that you take some of these ideas to head. The worst thing that you can do is get that refund and splurge it without nothing to show.