Are you excited about getting a return on this year’s taxes? Tired of not haveing nothing to show for the biggest check you get a year? This year take a stand, make a change, and make your tax return work for you this year. The good thing is you have options on where you want to spend your tax return and how you want it to work for you. Do you want security? Maybe you want to pay less throughout the year on bills?
Make a big purchase of a NEED paying in cash.
Need a new car this year because yours is on its last leg? Use your tax return to allow you to pay cash for that new to you car. You can get a better deal when paying cash, you won’t have a monthly car payment, and you can opt for a cheaper car insurance plan allowing you to keep monthly costs down.
Stuff your emergency fund
Open a saving account to hold $1000. Using your tax return to get that first jump into building your emergency fund painlessly. If you have already built up your first $1000 in your savings add to it and work up to 3-4 months living expenses. You never know what will happen in life and having money to cover medical expenses, keep you afloat during job loss, or fix that flat tire so you can get to work can be a relief.
Pay ahead for an easier year
Pay one or more of your bills off in full for the year. By doing this you can skip paying that bill all year long giving you more money in your budget each month. This is a great way to make life easier on yourself. Imagine how much easier life would be if you could go all year without a power, water, or other utility bill? That extra money in your pocket each month can make a world of a difference. I have even seen families pay all or most of their yearly rent with a large return taking away or cutting down the monthly biggest expense they have.
Invest your tax return and make it work for you
Start investing in stocks and bonds with your tax return. A large initial investment can pay off pretty fast and give you a larger return than a savings account. The trick is to not invest more than you can loose and to have a savings started first.
Start a side business or invest in one you have already started to help it grow. It can be pretty nice to take the return you got from over paying taxes and turn around and make a step towards changing your situation. It can be freeing to know that one day you will only have to answer to yourself.
Build a stockpile
While I have some great tips to starting a stockpile when you don’t have a lot of money I can’t tell you enough how awesome it can be to take a portion of your taxes to start your stockpile. You can get a huge jump on it without using much of your taxes. Then grab some gift cards just for using on sales at the supermarket to build onto your pile.