Believe it or not, tax season is officially upon us. Chances are you've probably received most of your tax forms in the mail, or they are available for your to review online. Before you know it, you'll be receiving your tax return (if you're one of the nearly 80% who receives one), and you'll be left wondering what to do with your extra spending cash! Well, before you go off and make an immediate purchase, here are some ideas for what you should do with your tax return this season. Yes, treating yourself is nice, but it's not always the best option for your return.
Pay Down Debt
There's little more satisfying than sending the last payment on a bill. It's so refreshing, and while it may not seem like an overly exciting thing to do with your tax money, it'll leave you with more money in your pocket at the end of each month. Score!
Start an Emergency Fund
Again, this is not something that you'll see immediate excitement from, but we're big fans of creating an emergency fund. Why, you may ask? Well, statistically speaking, more than half of Americans have less than $1000 in their accounts on any given day, and any emergency could be the difference between making ends meet and defaulting on loans. You'll be happy you have set aside money for unexpected expenses when the time comes. Trust us.
Give to Charity
Before you go off spending money on yourself, consider donating a portion of your tax return to charity. There are several non-profits that do a great deal of good in the world and they rely heavily on the donations they receive each year. Find a non-profit that aligns with your personal values and donate a portion back to them! It's a great way to know that your money is being used for a good cause.
Invest In Yourself
Whether you purchase a gym membership, decide to go get a checkup or do something to better your overall health, investing in yourself is a great way to spend a little bit of your tax return. When you feel good, you tend to perform better at your job and you have a better outlook on life. Do something nice for yourself that helps improve your quality of life.
Save For Retirment
The harsh reality is that none of us are getting younger, and retirement is a day closer than it was yesterday. If you don't have a ton of money set aside just yet, consider opening up a 401K and talk to a financial adviser who can get you started on the right track for retirement. Sure, you may not see immediate benefits from it (like buying yourself a brand new toy) but you'll be pleased to see how your money has worked for you when you retire.
Happy Tax Season!
-The Taconnet Team