Tax season just came and went. While most people dread this time of year, there are others who look forward to it. Many people benefit from tax season and actually receive tax returns. If you happen to be one of those lucky individuals, instead of spending it on that new item that’s been in your Amazon shopping cart, try one of the four alternative methods listed below on how to spend (or save) that money.
Four Alternative Ways to Spend (or save) your Tax Refund
- Double down on your monthly loans. Whether you have mortgage loans, car loans, or any other loans, pay back two months’ payment. This may not sound as great as upgrading your cell phone or buying that new flat screen TV, but by paying back an extra month you will accumulate less interest and be debt free a month earlier than anticipated.
- Invest. Maybe you weren’t expecting to receive a tax return and have been thinking about investing. This could be your time to be a little risky. Research the stock market and learn about what stocks have been successful, which ones haven’t, and which ones will be successful in the future. This tax return allows you to invest money you didn’t think you had in the first place. MyMazuma has several resources that can walk you through the investment process, and advise you on less risky approaches when making an investment.
- Spend it on something useful. Although we usually go for the new and shiny items, sometimes we have to buy the items that are a little dull. Do you need a new dishwasher? Or, what about a new home paint job? Whatever it may be, put your tax refund towards it. This way it doesn’t seem like a huge expense wasted. I know it may not be the “most fun” purchase, but hopefully it’ll make your life a little easier.
- Create an emergency fund. Life is unpredictable, and because of this, having an emergency fund is essential. An emergency fund not only helps you pay for unexpected expenses, it also relieves the stress of not having money available or a payment plan. Although we never want to think about the unfortunate events ahead of us, it’s always wise to prepare for them.
There are multiple other ways that you can use your tax refund. I’m also betting that you can think of a lot more intriguing ways to spend that money… But let’s be honest, if you use your money in one of the four ways listed above, you’re probably going to be pretty thankful in the long-run.