8 Amazing Ways To Spend Your Tax Refund
Hey, superstar. You cruised through tax season like the boss you are and now you’re getting a refund. Congrats! So, what are you going to do with all that extra cash? If it were up to us, we wouldn’t spend it all or save it all. It’s all about that balance. Here are a few solid ways to use that beautiful refund.
1. Start your first (or next) small investment.
When we say small, we mean it. Whether it’s $100 or just $5, try your hand at small-scale investing just to get the hang of things. Start with an easy investing app like Stash, Acorns or Robinhood to get started.
2. Pay off a credit card.
Got debt? Join the club! Be partly responsible with your tax refund by paying off one of those nasty credit cards you’ve been putting off for, like, years. Trust us when we say you’ll be a lot happier once that’s behind you. Plus, paying it off now can boost your credit score in the near future.
3. Start a dream fund.
Wanna go on a 15-day Euro vacation? Maybe you’re interested in learning the guitar for real this time. Throw a few hundo in a savings account. The sky is the limit with a dream fund, and you don’t have to put a limit (or a minimum) on how much you contribute to it.
4. Redecorate your apartment.
You know those pillows you’ve had since sophomore year of college? Yeah, it’s time you finally shell out the cash to replace them. Oh, and that bar cart you’ve always wanted? It’s time to spruce up your place a bit.
5. Put it toward a higher education.
Want to earn a certificate in something that either helps you along in your current career or takes it in a new direction? This is the perfect time to invest in continued education to keep your mind sharp and your skillset constantly growing.
6. Create a “treat yo’ self” fund.
It’s difficult to justify getting weekly (or even monthly) manicures, blowouts or new pairs of shoes. But with a hefty tax refund and the right budget, you can split that amount up into multiple months of extra spending money specifically for these occurrences. Sometimes you just gotta spring for the expensive Chinese place on Seamless, right?
7. Open a high-interest savings account.
You may already have a savings account, but do you know what your interest rate is? It could be next to nothing, which means your emergency fund isn’t growing too fast. So open a high-interest savings account to make money on that money every year without lifting a finger. You can use it to stash your tax refund every year. Before you know it, you’ll have enough money for that fabulous vacay or a brand new upgraded apartment.
8. Pay down your student loan debt.
Student loan debt can definitely get the best of us. When you have a little extra money to spend, it could be smart to add in an extra payment to help pay down the principal. Now, if you have a lot of student loan debt left, then a few hundred dollars might not make a huge dent. However, if you’re close to being done with it, why not use some of your tax refund to knock down that total so that you’re even closer to that finish line?
Whatever you do, consider spending and saving your tax refund in smart ways. Getting into good financial habits now can make all the difference in the long run.