It’s that time of the year again. Spring is here, you’re busting out the shorts/sandals combo, you’re going out more often, and you finally filed your taxes. Let’s assume for the sake of this article that you’re going to get some money back this year. Let’s look at your options.
What are the best ways to use your tax return? What are five killer ways to use your tax return for a something totally cool?
Take a trip.
I’m not shy about promoting travelling the world or taking some time to go on a trip. If you happen to get some money back you can plan a little trip. This should depend on the size of your return and your other finances. There’s nothing like experiencing something new or just getting away to recharge your batters after a tough work schedule. What’s a better time to go on a trip then around this time of the year? Just remember to have a drink for me.
Create an emergency fund.
If you’ve never really had the chance to build your savings, you can use your tax return to create a little cushion in your bank account (or an emergency fund). It’s important that you start saving for a rainy day in your 20s because you really don’t know what life can throw at you sometimes. I can’t help you emotionally, but I know that financially it always helps to have some money saved up just in case.
Start your own business.
These days you can easily start a business with less than $1,000. I’ve shared in great detail how you can start an online business. The best part is that all you need is a little bit of money, some spare time, and a passion. I’m pretty sure that you can at least get 2/3. This tax refund can be the boost that you need to start working on that project that you’ve had on your mind for a long time.
Pay off debt.
Chances are that you have looming student loans or some debt from your first student credit card. You can suck it up and use your tax return to deal with this debt. It’s not a fun way to spend this cash, but it beats having so much debt to think about constantly. If you kill some debt off right now, you can use your savings from the summer for some of the options on this list.
Save for your retirement.
If none of the other options are attractive to you (you must be boring), you can use your tax return to finally start saving for retirement. I know that thinking about being old is the last thing on your mind at 24, but we all grow old eventually (we don’t all have to grow up).
You don’t have to put all of this money into your retirement. You can keep it simple and put only $50 or so in so that you at least start a retirement account.
You can also choose to close this window and spend your tax refund on a new outfit. It’s your life. It’s your money. I’m just here to promote a few killer ways you can spend your tax return this year.
In casey you missed the tax dealing, you need to check out our previous piece on what to do after the day to file taxes has passed.