Most people squander their tax returns on stuff they don’t need. According to the National Retail Federation, more than 60 percent of Americans spend their refunds on a vacation, a major purchase, everyday expenses or “other.” Let this year be different. Use your tax return in a way that launches you forward and delivers benefits for the rest of your life.
Pay Off Debt
Your tax return might not be large enough to pay off all your debt, but it may be able to make a sizable dent. Determine which consumer debt is charging you the highest interest rate, and send that creditor your refund money. You could avoid hundreds in interest charges, plus it gives you momentum for paying off other debts. In the long run, paying down debt is usually a better idea than any other type of investment.
Build Emergency Fund
What was your last financial emergency? Whether it was a car repair, a new suit or a new roof, it would have been empowering to know you had the cash on hand. Put your refund into an emergency fund. The next time you have a financial emergency, you won’t have to charge it (or borrow from family), and that means less debt—and stress—for you.
Start Your Business
If you’re looking to launch your own business, now is the time to do it, and if this is the little bit of cash you need to get it off the ground, then go for it. If your tax refund doesn’t provide all the capital you need, try combining it with another form of financing, such as a small business loan. If you receive regular payments from a structured settlement, you may be able to sell your future payments for a lump sum of cash now. Visualize using these funds to help launch the business of your dreams.
Invest in Yourself
No one is investing in you other than you. Use your funds to hire a career coach or purchase a self-improvement course you’ve always wanted to complete. Is there a skill or certification you could acquire that will help you obtain a raise or promotion? Consider a leadership seminar or a business conference. Maybe it’s time you put you at the top of your priority list.
Start a Dream Fund
We all have dreams of doing something out of the norm. Maybe you want to buy a sailboat, go scuba diving in the Galapagos Islands or stand at the base of a volcano in Hawaii. Put your money where it will do you the most good for your soul: into your dreams. Knowing that you have set money aside to someday do the things you always wished you could do will make that dream a reality.
Need a better Plan?
Give Jay a call today at 866-594-9919 for a FREE 30 minute consultation.