Have you found yourself staring wide-eyed at the ATM screen with a feeling of having just received a big fat Christmas bonus and wondering why you suddenly have money in the bank? You most probably have been granted with a tax refund. Acquiring unplanned money will surely make you want to ask the question: “What should I do about this?” Here are ten ways to make wise use of your tax refund.
1. Pay debts with high-interest rates.
Now is an excellent time to get your loan account moving and get it out of your hair once and for all. If the refund is not sufficient to cover your current debts, pay the ones with high interest first. If you do not have overdue debts as of the moment, prepay loans or mortgages. It will give you the pleasure of financial relaxation for a time.
Saving has many apparent reasons. Keep the money for future use. Put in a time deposit. Open a new account. You may also want to build an Emergency Fund, Retirement Fund, or College Fund for the kids. The refund will surely be an excellent way to start.
Capitalizing on a refund is a unique way to start making it more. Put some in insurance with investing policies. Check a stock market that would most likely double your money. Many money-making activities will augment your repayment. Choose the one you think can be most profitable.
4. Open and start a small business.
Use the money as an asset for doing small business. Make a feasibility study to assure your return on investment. Just imagine how your money will grow when profit starts rolling in. This is undoubtedly an excellent way to make more of what you received.
5. Utilize it for your home, car, and appliances.
You might have faulty or old appliances that you have been planning to change when you get that extra cash. Now is the time. You can consider improving or making some home renovations. Your car might need some tuning here and there. Your refund can be used so that your monthly budget will not hurt too much.
6. Invest in yourself.
You might want to enroll in an art course that you have been eyeing on. Use some of the money to learn a new musical instrument. Purchase new sporting equipment for a new sport that you want to try. Join a baking workshop as you can use these skills to start a bakery of your own in the future.
7. Make that long-planned vacation happen.
For sure, you have been planning on a trip that needed ample saving to materialize. Now that you have the means to do so seize the opportunity. This blessing does not come all the time.
8. Delight yourself.
We all have needs and wants. Give in to – not one – but both of them no matter if it is practical or not. Buy that something that you need but cannot afford before. Push yourself to satisfy your “want” for something. It is not every day that you will submit to your heart’s desire.
9. Put some in your career.
Consider putting some in the job you have chosen. This may be in the form of products or learning. If you use a computer for work, this may be the time for you to purchase one that is updated and performs better. You can also search for seminars to learn more about your job and career. Your work performance will surely deliver agreeable results in the form of promotion or salary increase.
10. Give back to the world.
Tax refunds may seem like a gift to some people. You can donate to a charitable institution. Visit an orphanage and buy them books. Share to an animal shelter for food and vitamins. Give to a particular society recently affected by natural disasters. Just give. It doesn’t have to be the whole amount.
No matter how you choose to use your tax refund, always take into account what will make you happy. Everything follows after that.