Financial

Savvy Ways to Spend Your Tax Refund

Written by admin

You can find a variety of ways to spend your tax refund. From adding to your savings account to taking a vacation, the way you spend your tax refund is completely up to you. However, it can be hard to resist the temptation to treat yourself and spend your hard-earned refund on something more fun. With that in mind, here are some suggestions on how to spend your tax refund.

Take a vacation

Everyone needs time off from work once in a while, especially if you haven’t take a vacation lately. Time away from work gives you the perfect opportunity to refresh and recharge, which enables you to return with a new perspective and increased productivity. In fact, many people get their best ideas away from the workplace.

If you’ve been putting off a vacation, a tax refund might be the excuse you need. Depending on your budget, you may choose to opt for something more expensive, like a flight to a tropical paradise or a drive to tour wine country. For something more budget-friendly, check out the gorgeous beaches near The Mill Casino on Coos Bay, Oregon. Often called a “site for shore eyes,” the area has plenty to offer from Sunset Bay State Park to Horsfall Beach.

Invest in your house

Tax refunds are also a great excuse for taking care of fixes around the house that you’ve been putting off. Replacing old appliances before problems arise can save you money and energy in the long run. For instance, your tax refund will probably cover replacing your old fridge before it starts to leak, which would create more issues. Finding a reliable fridge repair company doesn’t have to be stressful — just do a Google search, such as “Oakland refrigerator repair.”

If your appliances are up to date, consider remodeling a room in your house that you don’t love. Bathroom remodeling is often relatively inexpensive and is a great way to add value to your home, update your home’s style, and adapt the room to your current needs. Whichever room you choose to renovate, keep in mind that the improvements will serve both you and your family for years to come.

You can also try your hand at DIY home improvements to spend less money. Consider landscaping your outdoor space to match what you want to get out of it. DIY landscaping is doable as long as you invest in proper equipment such as root grapples, which can help you move, stack, and lift heavy items around the yard.

Try something new

You may be tempted to spend your tax refund on dinners out, movies, or other things that will give you short-term pleasure. Instead, use your refund to do something you’ve always wanted to do that you’ll remember for years to come.

If you’ve always wanted to go skiing, your new funds can be used to make it happen. Invest in some ski lessons and quality skiing equipment. If you’ve always wanted front row seats to a baseball game, now’s your chance to buy those tickets.

Take time for yourself

Tax season is stressful for everyone, and most people have tension to work out once it’s finished. Investing in self-care is extremely important and makes you stronger in the long run. Taking some time for yourself affects your physical health by triggering your relaxation response and preventing the damaging effects of chronic stress. Time alone also allows you to reflect on everything you’ve accomplished over the past year.

After receiving your tax refund, use some if it to pay yourself back for all the hard work you’ve done in the past year. One great way to treat yourself is by investing in a day at the spa, a relaxing massage, or a yoga class.

You can also use your tax refund to accomplish that New Year’s resolution of getting more fit this year. Use the tax refund to join a gym, invest in some workout classes, or buy a new bike that’ll motivate you to work out more often.

Give to charity

The extra cash you receive from your tax refund offers a great opportunity to support local charitable causes. While you don’t have to donate all of your refund, donating some to a nonprofit can benefit your hometown immensely. To make a big impact, fund someone’s efforts in a 5K race.

Donating to charity will make you feel good about yourself and might even reduce your future tax burden. Gifts to qualified charitable organizations typically entitle you to a charitable contribution deduction against your income tax when you itemize deductions. In other words, you’ll be able to use the money you donated as a write-off on your next tax return.

Go back to school

Your tax refund isn’t enough to afford going back to school to get a new degree, but it gives you the chance to take a class or two on a topic you’ve always been interested in learning more about. You can take classes about nearly any topic online or at your local community college.

From academic subjects like history to more leisurely classes like ballroom dancing or introductory painting, the class you choose will help you improve yourself and learn more about yourself. Additionally, taking advantage of the Lifetime Learning tax credit can potentially lead to more future tax savings.

Treat yourself

As previously mentioned, self-care is important — especially after the stress that comes with filing your taxes. You can save most of your tax refund while treating yourself to small things you enjoy.

If you’re into shopping, many retailers offer promotions after tax reason. If you enjoy a glass of wine with dinner, use some of your refund to buy a bottle you’ve always wanted to try. Treating yourself to something as small as a coffee helps you reward yourself for surviving another tax season and leaves the majority of the refund in your savings account.

On the same note, funding your hobby by purchasing something just out of your price range also serves as a great reward for completing tax season. If you’re into art, treat yourself to a new sketchbook or higher quality paint than you typically use. Spending your refund on something that meets your current interests will help take your hobby to the next level.

Pay it forward

Another great way to spend your tax refund is by paying it forward to those around you. If you know your neighbor is going through a hard time, buy him or her a gift card to a favorite restaurant and slip it under the door. Try tipping extra at your local diner or surprise your friends at dinner by covering the bill. It doesn’t take much to make someone’s day.

While there are a multitude of ways to spend your tax refund, make sure you spend it on something worthwhile that you enjoy. Taking some time for yourself, using your refund to plan your next vacation, or paying it forward by helping out friends, family, or your local charity are all meaningful ways to spend your refund this season. All in all, it’s important to remember that you can have fun spending your tax refund while still being able to set some aside for savings.

About the author

admin

Leave a Reply

avatar
  Subscribe  
Notify of