Got Your Tax Refund? Here's Some Ways to Use It!
There’s not many things more exciting in life than a tax refund, right? We look forward to it every year and make big plans for how we are going to spend it. While it is very easy to spend on unnecessary purchases, here are some smart ways you can use your tax refund. No worries – we made sure to include some fun ways, too. 😉
Maybe you’ve never invested before, or maybe you’re an investment expert. Regardless of your previous experience, using your tax refund to invest really isn’t a bad idea. It’s money that is already there, so it doesn’t take much effort to put this money into an investment account. If you want to dip your toes in the water with investing, considering opening up a 5-month Share Certificate with Education First FCU and start earning money on that investment! After 5 months, you can either take this money out (along with your interest earned) or continue to reinvest it. Learn more here.
Pay Down Debt
Debt: the dreaded four-letter word. As painful as it is to put your money toward paying off debt, it will be one of the smartest financial decisions you make. The longer you accumulate your debt, the more you will pay in interest. Therefore, the sooner you pay it off, the more money you'll have in your pocket. If you have a large amount of debt, use your tax refund to cover as much as you can. You will thank yourself later!
Plan for a Vacation
We told you we’d include some fun ways! 😉 Money spent on traveling is never wasted, so consider using your tax refund to fund your next vacation. Maybe you’ve been dreaming of visiting the Colorado mountains or basking in the Caribbean sun! With spring break around the corner and summer not far behind it, now is the perfect time use this money as payment for the trip. Also, check out these travel budget tips to ensure you get your money’s worth for the trip.
Add to Savings for a Large Expense
You may be expecting a large expense within the next year - such as buying a new car, doing some home repairs, or paying for school. If you know you are going to be making a large financial investment, set your tax refund aside to help with this purchase! When it’s time for you to buy, this extra money will help go a long way.
Enhance Your Skills
This is one of our personal favorites: consider using your tax refund to invest into something that will enhance your skills. Maybe you’ve been wanting to learn another language, or how to use Photoshop, or even how to build something. Whatever it may be, using your tax money to fund these classes or projects is a great financial investment for you and your professional career.
Sure, you can spend your tax refund on unnecessary purchases, but choosing wisely will ensure you are investing into your financial future.