Every year, millions of Americans receive a surprise financial boost from the government in the form of a tax refund. While it might be tempting for you to head out to around Texas and Oklahoma and spend that whole check on a fun weekend, you should consider what the money could do for your future finances.
After all, if that check is sizeable enough to make an impact on your bank account, it could actually be life-changing — in the best way possible!
Here's how you can spend this year's tax refund wisely:
1. Separate the Funds
If you keep your tax refund mixed in with your normal bank account, it will probably get spent like the rest of your money. Instead, create a separate bank account or a savings account and place it there. That way, you can more easily create a budget for the refund.
2. Start an Emergency Fund
We firmly believe everyone needs an emergency fund. It's money you can rely on when times get tough, such as if you or a partner lose a job. One of the smart things to do with your tax refund is to put it all into your emergency fund and continue to contribute whenever you have a little extra money. Ideally, an emergency fund can cover up to six months of expenses.
3. Put It Toward Retirement
Another one of the best things to do with your tax refund is investing in your retirement account. Even if you're in your 20s now, you're never too young to start saving. This will end up as the best use of your tax refund if you put your money into the retirement account every year to accrue value.
4. Make an Investment
When you're wondering how to spend your tax refund this year, the answer may be to make that money go farther. Investing in the stock market can increase your refund in the short term, giving you a higher return than some other wealth management options.
5. Fund Your Career Improvement
You earned the tax refund by working hard, so put your tax refund hard to work for you. If you're wondering what to do with a tax refund, put the money toward self-improvement and take a continuing education class that will help you excel. You could also go on a trip to learn more about your field or take a course to learn a new skill.
6. Pay Off Debt
Inspect your overall finances. Do you have any pressing debts? What about a payday loan or personal loan on a repayment plan? Make sure to split up some of the money from your refund and dedicate it to paying off these debts.
7. Make Smart Purchases
Instead of blowing the rest of the money on frivolous items and entertainment, think about the future. Could you use better insulation in your house for the summer heat? Could you put a down payment on a new car? Always choose what to do with tax return money and your expenditures wisely.
Once you've made these smart choices with your refund and you know you're set for the near future, spend the rest on yourself. You've earned it!
And remember, if you haven't gotten your refund yet but you need money immediately, you can always go with a personal loan from Atlas Credit. Customers throughout Texas or Oklahoma should know they always have the option of a loan of up to $1,400 on a 5 to 12-month repayment plan. Call us today, apply online or visit one of our many locations throughout Texas and Oklahoma!