When tax return season begins, there seems to be a buzzing in the air–an electric charge felt by everyone who anticipates a sizable hunk of extra money in their bank account in the near future. Most people wait all year long to have a lump sum of money with which they can choose to go use on a wide variety of goods, services, and experiences. If it’s your first big tax return, you may have a difficult time deciding just what to do with your hunk of money. In this article you’ll find a gathering of different ideas and suggestions as to how you should spend your income tax returns when the time comes.
Firstly, when decided what to spend your income tax returns on, it’s important to stop and evaluate your current life standings. Do you have outstanding credit card debt or student loan bills that are backed up? Is your car in need of major repairs, or are you perhaps in need of a new vehicle altogether? Have you needed to replace the flooring in your laundry room and the pipes in your upstairs bathroom for a few years now, but just haven’t wanted to or been able to afford such costly repairs? Do you have unpaid medical bills? It may be tempting to want to blow your income tax return on something fun and enjoyable like a vacation or a new gadget, but if you have responsibilities that have been ignored and need taken care of immediately, it may be the smart thing to suck it up and your return. Although you’ll have to forfeit the Jamaican cruise, the newest iPhone, and that fancy leather bag you’ve been eyeing for months–you will experience a deep feeling of satisfaction knowing you’ve been responsible and done the right thing with your income tax return.
Another smart idea of what to do with your income tax return is to save it in an account that will accrue interest and build on your money for as long as it sits in the account. If you already have a sizable savings account or want to find other ways to build on your money, then perhaps consider looking into investing your money in the stock market by buying shares in successful companies in fast-growing industries.
If your credit card and student loans are paid off, your car is paid off and in good running conditions, and your house isn’t in need of any major repairs or renovations, then hey! You’re lucky enough to have dozens of options as to what to spend your money on. If you can’t remember the last time you bought yourself new clothes, go to the mall and get yourself a nice, good-quality, basic wardrobe and then throw in a few special pieces of apparel and accessories to make for the perfect shopping trip. If you prefer online shopping, hit up shops like Torrid, Forever21, and ASOS to find stylish apparel and accessories that will fill your closet and make you look and feel amazing!
Another way you can choose to spend your income tax return is to take an adventure and travel somewhere you’ve never been before! Book an Alaskan cruise through nearly frozen waters, hike your way through the Appalachian Mountains, stopping at bed & breakfasts along the way, or take a first-class flight to France where you’ll dine on haute cuisine, see the Eiffel Tower, and experience the magic of the French countryside in the spring! Adding life experiences that are exciting and memorable is always a good way to spend money. However you decide to allocate your income tax return, make sure you’ve considered these tips and thought it over thoroughly! Income tax returns only come once a year, afterall!