The Smartest Places to Spend Your Tax Return
Tax refund season has arrived. An unexpected windfall of cash burning a hole in your pocket is bound to give way to an ample amount of soul searching. Before spending a cent, we recommend taking time to reflect on one’s own long-term personal and career goals. No matter where your age, income, or interests lie, here are some ideas on how to spend your hard-earned refund now!
Unpaid bills and looming credit add unneeded stress to everyday life. Use your new surplus to get out of the red. Paying off debts will have you feeling refreshed and ready to move forward with a clean slate. Take stock of where and how you’ve overspent in the past and develop a strategy moving forward that will keep you well the black.
For homeowners, home improvement projects increase property value and pay dividends in the long run. Consider upgrading outdated appliances or add soulful embellishments in the way of crown moulding to luxe hardware. Even smaller projects can have a huge impact. Spruce up the place with a new paint colour or refurbish a beloved piece of vintage furniture. Feathering your nest is a rewarding task that you’ll be sure to enjoy the benefits of daily.
Be it placing funds in a tax-sheltered account, contributing to a 401K or high-yield savings account, or purchasing stock, contribute to areas that will grow your investment over time. Choose your contribution in accordance with your own personal long-term goals and income level. A forward-thinking approach to finances will create a sense of ease and well-being in the present.
If you’ve been looking to buy a new car or make a real estate purchase, now is the perfect time. Boosting an initial money-down investment will ensure a smaller mortgage or payment cycle down the line.
Have a new business venture or killer idea that needs some startup capital? Reward your entrepreneurial spirit and funnel those new funds toward seeing the idea through to fruition. It takes money to make money. Investing in goals is the only way to grow, so put your money where your mouth is.
By all means, take care of the top priorities first. Once you’ve given your bills and savings a little love, splurge a little. While temptations to makeover your bedroom or welcome some new additions to the closet abound, we recommend instead channeling extra dollars into a enriching getaway or staycation of choice. Travel broadens the mind and feeds the soul. Who knows what new adventures and opportunities a fabulous trip will bring…
Choose a charity close to your heart and give generously. Contributing to a worthy cause provides immeasurable benefits for the community at large. What could be more rewarding than an investment in making the world a better place? There’s the added bonus of claiming a tax deduction too.
How will you be spending your refund this year? Tell us in the comments below.