Tax Season is upon us, and you are wondering what to do with your tax refund once you receive it. Tax refunds are a great way to get a head start on several financial goals.
Save towards Emergency Fund
The rule of thumb is to put away at least 3 to 6 months’ worth of expenses. If you already have an emergency fund set aside, add more to it. After all, you never know the magnitude of your next emergency. If you do not have an emergency fund, start now.
Plan a Vacation
Set aside your tax refund and research which country/city/state you can explore with the exact amount or less. Perhaps there are places you want to visit, and now may be the time for the opportunity. It is always a good strategy to stick to a budget when planning any vacation.
Invest in the Stock Market
Investing is a great way to have financial stability. Your money works for you while you are asleep. Since your tax refund is money that is usually unaccounted for, research some of the companies you love and begin to invest in them. Stash and Robinhood are both great platforms to start investing. If you are a beginner and need help to get started, sign up here for my 1:1 coaching session
Save towards a Big Purchase
Another way to make your tax refund useful is to save it towards a big purchase. Having a downpayment towards a big purchase can save you a lot of money over time. If you are planning on buying a new house consider putting your tax refund towards that goal or a new car.
Pay-Off High Interest Credit Card Debt
Since credit cards are unsecured debts, they usually have high-interest rates. Credit cards, unlike a mortgage or a student loan, are never tax-deductible. So why keep a high balance on the high-interest credit card when you can throw the extra money from your tax refund towards it.
- If you are a beginner and are looking to learn how to invest and analyze stocks, click here to book a session. I teach how to identify good stocks to invest in and how to create a diversified portfolio. This is one of the best things you can do for yourself or someone you love to reach financial freedom.
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Very insightful. I was torn about whether I should put money down towards my wedding or money towards a much needed vacation. Thank you so much for the information. I will be tuning in.
You can definitely save towards bot, just have a budget in mind and get the ball rolling
Good read! Completely forgot I can use my tax return towards that one flight ticket I’ve been dreading splurging on. Gracias for the reminder!
I am glad I was able to serve as a reminder 🙂
Thanks you so much
This was great !
Thanks you so much !
Thank you for stopping by 🙂