There are many sensible ways to spend your tax refund – like saving for your retirement or paying down bills. If you have a large amount of debt, you should use your tax return to pay that down before spending it on anything else. Another option is, if you don’t have a cushion or nest egg, now is your chance to begin building one. Here are a few more ways to use your tax return, which will benefit you in the long run.
Invest in your happiness
Instead of spending your refund on short term pleasures, like dinners out or fancy coffee in the morning, use your tax refund to build something meaningful. Take a class at the community college near you, to learn new skills. If there is a class that will help you further your career, take it! If there’s something you’ve always wanted to learn how to do, now is the time.
Shop for yourself
Think before you shop, maybe there is something your home really needs, like a new fridge, or maybe you need a new outfit for job interviews. This is the time to buy things that will better your quality of life. At this time of year, retailers offer seasonal sales to push people into spending their refund checks at their stores. Use this to your advantage and get good deals on the things you want.
Take a Vacation
Think of somewhere you’ve always wanted to go. A meaningful vacation is something that is worth your money and time. This is your opportunity to fortify bonds with friends or family that live far away. Take a trip to see your best friend from college, or your cousin you haven’t seen in 10 years! Meaningful trips like these renew bonds with the important people in your life, who you may not get to see everyday.
Your health is the key to your happiness. If you want to live to an old age, you have to be healthy. The best way to start is to exercise, especially if you work in a sedentary job. You might have even considered working out at some other point in your life, but don’t know the first thing about where to start. Now is the time to get a gym membership and learn how to work out the right way. If gyms aren’t your thing, you could use your tax refund to buy a new bike or sign up for a group exercise class like Pilates or Zumba to get your heart rate up! By spending the money on this, it may encourage you to get more exercise.
Become a Giver
Giving back to your community or the world at large can renew your zest for life. Give to a charity, donate to a local school, or donate to an animal shelter. Non for profit organizations like these need all the help they can get from community members like you! Knowing that you’ve made an impact on someone’s life can be its own reward.
If you would like tips on practical ways to spend your refund, you can check out our other article on this topic here .