It’s that time of year again! April 15th came and went and hopefully we all got our taxes done in time. While paying Uncle Sam is probably no one’s idea of fun, it is exciting when you get your tax return back. But what should you spend this cash on?
There are lots of ways to spend your tax return (some smart, some spontaneous). Below are some great ideas:
- Create an emergency fund. You never know when an unexpected car or house repair or medical emergency might happen.
- Add it to your savings account.
- Pay off some debt. Credit cards and loans can carry hefty interest rates, so eliminate your debt if you can.
- Add to your retirement fund. Whether you’re still working or living in retirement, planning for retirement expenses is a smart way to use your return.
- Plan for a “rainy day.” If the kids or grandkids ever need something, you can give them some extra cash without breaking the bank.
- Contribute to a college fund for the grandkids or take some classes for yourself.
- Invest it.
- Use your refund to kickstart a new business. Although it’s expensive, even a little bit of extra cash can help you get started pursuing a product or service you’re passionate about.
- Prepay your mortgage. This will be great to help reduce your payments and interest left on your house payments.
- Tackle some renovations for your home. Maybe you’ve been thinking of redoing your bathroom and installing a walk-in tub.
- Buy life insurance to help protect your loved ones and family incase of an unlikely event.
- Visit a friend in the hospital and bring them flowers or a meal.
- Donate to a charity or a cause you are passionate about.
- Donate supplies to a local elementary school.
- Pay it forward all day for people, whether in a drive through line or at the grocery store
- Go on a personal shopping spree for some instant gratification.
- Sponsor someone in a group or who may need help, such as someone running a race for charity, someone struggling with addiction, or someone planning an outreach trip.
- Go to a local food bank and cater lunch for the day.
- Buy hygiene items, jackets, or blankets for those in homeless shelters.
- Book a solo vacation.
- Plant a garden in the backyard, help yourself go green, and give back to the environment.
There are lots of ways to spend your tax refund. Whether you want to give back to your community, buy some things for yourself, or make improvements to your bathing experience, do something special with the extra money you may receive.