If you're one of the lucky Americans who receives an income tax return, you're probably reeling with excitement! Tax season is upon us and that sweet cash will soon be in your pocket and ready to spend.
But maybe you want to do things differently this year. Instead of buying a new TV or going on a mini-vacation with the money, maybe you want to spend it more wisely.
Now that's smart thinking. Here are 4 great ways you can spend your 2019 income tax return!
1. Create Your Emergency Fund
Saving money is undoubtedly one of the wisest financial decisions you can make -- aside from going back in time and investing in Google, of course. But even if you don't have a healthy savings account in place, you can easily get one started immediately with your 2019 tax refund.
But this first step towards savings isn't just about gaining interest and preparing for retirement. An emergency fund is about preparing for the near future and anything it might throw your way. Sure, you might not experience the thrill of shopping with that money, but the peace of mind of knowing you have an emergency fund to cover any unforeseen circumstances can't be beaten.
2. Pay Down Your Debt
Whether you have credit card bills, a car payment, or even a personal loan, taking advantage of your income tax return and paying down your debt is an incredibly smart financial decision.
Some individuals receive considerably large tax refunds that can wipe out a whole mountain of debt all at once. Others may only receive a small amount, but any money paid toward eliminating your debt means you will be that much closer to financial freedom.
3. Cut it in Half
Don't have debt to worry about? Already have an emergency fund in place?
Maybe you feel like spending your 2019 income tax refund on yourself. And if the above applies to you, you probably deserve it!
Still, you should consider what using half of that money wisely could mean for you. By putting half of it in savings or toward a smart investment, you can feel even better about spending the rest however you choose!
4. Invest in Your Future
As we detailed in a recent blog post, becoming an investor in the stock market can be a superb option for growing your personal wealth. If you are already financially secure enough to not have to worry about your monthly bills, pouring your excess into investments can pay off in amazing ways.
That is exactly why choosing to use your tax refund to invest in the stock market can be a great choice for your future. Whether you find a specific company to invest in or simply go the mutual fund route, educating yourself and making wise investments is almost always as smart as a simple savings account.
For more excellent financial advice, check back next week to read more from the experts at Atlas Credit!