It’s that time of they year. You made it through the holidays and you are looking forward to the New Year ahead. Tax season is now upon us and if you are like 75% of Americans, you will receive an income tax refund.
This extra cash is like a windfall. The average tax return last year was approximately $3,000.00. That is a nice chunk of change, one that can be used to make a real difference in your life.
Now is the time to prepare…how are you going to spend your money? You can use that money for so many things and depending on your current financial situation, there are some great, smart ways to spend your tax return.
Pay Down Debt
If you have debt, it is a great time to pay down your high interest debt and relieve yourself of the burden and free up your disposable cash moving forward.
Invest in Yourself
It is always a great idea to invest in yourself and enrich your life. Perhaps there is a class you have been wanting to take to better your career opportunities or for a hobby or interest that brings you joy and happiness. Investing in yourself and creating life balance is always a win.
Americans are always due a vacation. We as a country do not prioritize our down time and the main reason is that the cost of a family vacation is often out of reach. Your tax refund can be a way for you take that long overdue vacation to recharge and spend quality time with family and friends.
It never hurts to have a nice nest egg, family emergency fund or to contribute to your retirement savings. Starting a savings account or adding to your existing savings can give you the piece of mind that you are working and building your savings for your future needs.
Start off the New Year by using your refund to create a better future and fantastic year ahead.