If you’re receiving a tax refund this year, you may be tempted to splurge and spend it right away. However, it’s smart to stretch your refund as long as it can go. Think of it like your work paycheck. From your paycheck, you assemble, organize, and ensure all of your bills are paid and that you have the basic necessities taken care of. Your tax refund is no different. With your return, you want to make sure you organize and disperse your money in the right places because it’s money that you’ve earned, and worked hard for. Below, you’ll find 4 productive ways to spend your tax refund this year.
1. Invest in yourself
What better way to enjoy the fruits of your labor than to invest in yourself. This could look a few different ways. It may be using your refund to help purchase that home or car you’ve been wanting. It may be taking a much needed vacation and taking some time off work. Or, It may be going back to school and taking a class for a certification you’ve had your eye on. There are no wrong answers when thinking about how you want to allocate your funds. Whatever investing in yourself looks like to you, don’t be afraid to take the opportunity this year.
2. Start your business
We all know how difficult it can be to start a business. It takes time, dedication, and most importantly money. Take this moment to think about what’s stopping you from having your business. More times than not it’s the financial part that hinders us. Using your refund to help jumpstart your business is a proactive way to set yourself up for success.
If you don’t want to start a business from scratch, consider starting a franchise. Buying a franchise opportunity means buying a recognized name, which saves you marketing expenses. Franchises also come with training and support, so it is okay if you lack experience owning a business. Some franchise opportunities, such as OctoClean, can be extremely affordable. Visit our price guide to determine if you have the capital to start an OctoClean Franchise.
3. Pay off debt
When it comes to debt, we all know how easy it can be to find ourselves in a hole that we can’t get out of. Making only minimum monthly payments on your credit cards can cost you more over time. Using your refund, or at least part of it, could help substantially when it comes to bringing down your debt. Take this opportunity to catch up or even get ahead of some of your bills.
The best thing to do if you’re contemplating how to spend your refund this season is to save. 2020 truly showed us how uncertain times can be, so it is essential to have an emergency fund that can help alleviate stress in those uncertain periods of our lives. Saving at least a portion of your refund will only benefit you and prevent you from making unnecessary purchases. If you already have an emergency fund, then it doesn’t hurt to continue to add to it.
All in all, using your tax refund responsibly is an investment that can help you build a better financial future and fund opportunities that matter to you. Receiving a refund puts you at an advantage, but if you’re able to use it wisely, you’re off to a great start. If there’s ever an opportunity each year to jumpstart your business, travel, or even save, it’s during tax season and you don’t want to miss out.