6 Ways to Put Your Tax Refund to Good Use This Year

6 Ways to Put Your Tax Refund to Good Use This Year

While no one likes doing taxes, the tax refund makes it all worth it. It can be tempting to go out and spend all that money right away. After all, it’s your money! But there are many better ways to use the money and maximize the benefits of your refund. Consider using a small portion of your refund for something fun and funneling the rest into savings, investments, and debt repayment. At AccuTax Pros, we want you to get the most out of your refund! Here are 6 great ways to use your tax refund this year.

Pay for a Major Home Repair

Is your home in need of a major repair? The longer you put it off, the more expensive the problem will get. Your tax refund is an excellent way to fund major home repairs so you can avoid going into debt over maintenance issues down the line. Need an old roof repaired or replaced? The cost can range substantially depending on the type of work you need done, the roofing materials used, the size of your roof, and local labor costs. You can use websites like Angi to find local roofing companies and read customer reviews. Just make sure your contractor is certified and insured!

Invest for the Future

Investing is another great way to use your tax refund. Consider investing your refund for both short- and long-term financial goals. For example, if you want to save up money to buy a new car in a few years, put some of the money in a high-interest savings account. If you want to contribute to your retirement plans, consider investing in index funds for long-term growth. Don’t hesitate to talk to a financial advisor if you’re not sure where to start!

Build Your Emergency Fund

While investing for the future is important, make sure you also have some money squirreled away for emergencies. Your emergency fund should be easy to access, unlike many long-term investment options. According to Wells Fargo, it’s a good rule of thumb to save at least three to six months of living expenses in your emergency fund just in case you lose your source of income.

Pay Down Credit Card Debt

By using your tax refund to pay down high-interest credit debt, you’ll reduce both your debt balance and your monthly interest owed. This will enable you to readjust your household budget and put more of your income towards your savings goals. Paying off credit card debt can also boost your credit score, which can qualify you for a balance transfer credit card with a long, interest-free period.

Advance Your Professional Skills

If you want to advance your professional career, consider spending your tax refund on some online courses. You could take courses on writing, public speaking, networking, branding negotiating, or any specific skills you need in order to advance in your industry. Investing in yourself is an excellent use of your tax refund!

Start a Business

If you need some money to get your business idea off the ground, look no further for funding than your tax refund! You can bring all kinds of business ideas to life for less than $1,000. For example ToughNickel suggests buying items in bulk and selling them online, monetizing a hobby, becoming a business consultant, or working as a life coach.

Don’t let your tax money go to waste this year! Instead of spending your refund on a few new outfits or a fancy new gadget for your kitchen, consider putting it towards your future! Pad your savings, invest in your retirement, repair your home, pay off some credit card debt, or learn some new skills. You won’t regret it!

Are you looking for tax preparation help? AccuTax Pros is a team of tax professionals who can help make tax time a breeze and ensure you get the refund you’re entitled to! Book an appointment today!