5 Uses For Your Tax Refund

 

5 uses for your tax refundWhat’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.

Save

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.

Invest

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.

Fix something

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.

What are some other things you could use your tax refund on?

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  1. I pretty do all of these things with my tax returns. It’s a great time of year to plan for the rest of the year.
    Krystle Cook recently posted…Tribes-A-Dozen Voila! Hallah Egg Bread Mixes Review & GiveawayMy Profile

  2. Mine definitely goes straight to the mortgage. We REALLY need to get those down!
    Becc recently posted…Suicidal Thoughts, Sickness, Health and Hope: A Personal JourneyMy Profile

  3. I am self employed so I have to pay quarterly taxes. I try to get my taxes to come out even so I rarely get a tax return. But last year I did and my tax preparer suggested that I apply it to my 1st quarter payment for the new year!

  4. I wish I got a tax refund 🙁
    Jacqueline Gum (Jacquie) recently posted…Count Your Blessings… Where’s The Justice?My Profile

  5. Great ideas, Jason. I think this year ours is going to home repairs.
    Meredith Wouters recently posted…On a Wing and a PrayerMy Profile

  6. I had to laugh. It has been a VERY long time since I have seen a tax refund. Why? I adjust my withholding to reduce it to zero or pay a little. Why do I do that? I use the extra cash flow to invest, thus making money on my money all year long. It took me a while to figure that out and it has really paid off. Just my thoughts. 🙂
    Susan Cooper recently posted…Easy Meatloaf: RecipeMy Profile

  7. No tax return for me, but holidays or long coveted items were the usual targets when I did. 🙂
    Debra Yearwood recently posted…5 Ways To Be Strategic, In Spite of DataMy Profile

  8. No refund here, either, sadly…but if we did get one, I love the vacation idea.
    Sharon Purvis recently posted…In Which I Ponder Why I Love AmericaMy Profile

  9. good suggestions, but most people want fun ideas like planning that vacation you mentioned. but what about investing starting a new business? good luck, max
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  10. Steve

    House work or purchasing something new for the home is how I usually use a tax refund. Although I also try to adjust my w4 so that I don’t get a refund next year.

  11. Ours is already spoken for : 0 We upgraded our renter’s kitchen as well as our bathroom, so the $ will go towards that.

    I do like the idea of using it to pay off debt, though. Saving and investing are both of course great options as well!
    DC @ Young Adult Money recently posted…How to Build an Emergency Fund and Why It’s a PriorityMy Profile

  12. I got tax breaks because I’m taking care of my mom and I cover half of her expenses. I plan to invest the money and hopefully I can do this intentionally. I mean, do it like a monthly thing. I’ve made some investments before and I haven’t touched it for a while. I’ll put in more money this year.