Five Wise Ways to Spend Your Tax Refund

This Year, Don’t Squander Your Tax Refund

Each and every year, my wife and I have had a habit of squandering our tax refund. From gadgets that we really didn’t need to vacations that we didn’t have to take, it seems like we’ve always had our tax refund spent well before we got it. This year, we’re taking a different approach to spending our tax refund and being one to preach what I practice, I’ve come up with five wise ways you can spend your tax refund too.

1. Pay Down Your Debt

First things first, if you have high credit card balances, unpaid car loans or other outstanding debts that are haunting your mailbox each and every month, you should apply your tax refund to those outstanding debts. While you may not experience instant gratification by spending your tax refund this way, you will experience a bit of financial relief.

2. Invest It

If you’ve been meaning to put some money into investments, but you never seem to have the cash to do it, now may be the perfect opportunity. Let your tax refund go to work for you by making some wise investments with it.

3. Enrich Yourself with It

While some people may view this as a way to squander your tax refund, I am a big fan of personal enrichment. If you have the time and inclination, see what interesting classes are being offered in your community. Whether you’re interested in culinary classes or you’d like to learn a little something about the arts, enriching yourself may the perfect way to spend your tax refund.

4. Donate It

Okay, again, this may seem like a fool-hearty notion to some, but many people might appreciate the idea of making tax refund time the opportunity to give beyond your normal means. With all of the disasters as of late, there is no end to the monetary needs facing worldwide relief organizations. By donating your tax refund, you can do your part to advance the recovery.

5. Improve Your Home

If you’re a homeowner, you may want to use your tax refund to make an improvement to your home that will increase your home’s value. For example, remodeling a bathroom won’t only increase the enjoyment you get out of your house, but you won’t really be losing the money you spend because the investment in your home with actually increase your home’s value!

Do you have any ideas for wise ways of spending your tax refund? If you do, please share it with us!