It is that time again. Tax returns- it is your hard-earned money but still, it feels like winning a lottery. So, the desire to spend that money on expensive and unnecessary things is understandable. But check out these suggestions on how to use your money before you do that.
Pay off your debt
With the ever-increasing interest rates on different kinds of bank loans, it is becoming very difficult to be debt-free. You should consider paying off your credit card or education loan. You will be able to save your money by being debt-free.
Make an investment
Use your tax refund to earn more money. With the inflation rate increasing around 2-3% per year, it makes no sense to keep your hard-earned money in the bank account. Do the research, select the appropriate stock or ETF or managed index fund for you and start investing for your future. You will thank yourself for doing this.
Upskill yourself
It is critical to enhancing your skills in the current environment. Upskilling yourself gives you the flexibility to switch your career field or start your own business. Sign up for an online course that can improve your job prospects. The opportunities will be endless after that.
Create an emergency fund
Have you ever been short of money and needed to cut down your daily costs? Creating an emergency fund and putting some money into it from your tax refund should be high up there in your priorities. The money will come in handy during those rainy days.
Donate
I know this will not sound like a good idea to some. But helping those in need will do wonders for your mental wellbeing. Donating to a cause close to your heart will make you feel happy and fuzzy. Also, it might be a tax deduction during the next financial year.
Whatever you decide to do, it is a good idea to have a plan before you receive your tax refund. Because, as you might know, it will not take long before that money disappears again.
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