Put Your Tax Refund To Good Use With These Smart Moves

Put Your Tax Refund To Good Use With These Smart Moves

May 31, 2022

Put Your Tax Refund To Good Use With These Smart Moves

When tax season rolls around, many of us start dreaming of all the ways we can spend that big refund, and while buying all those items off your wish list may seem enticing, it’s a good idea to think about how you can put it to good use. Whether you want to invest, start saving to purchase a house, or fund a small business, there are several wise ways you can utilize your tax refund this year. If you’re ready to start thinking about retirement planning or are interested in investing for the future, Beacon Wealth can help you make the process as easy as possible. Here are a few ideas on how to make your tax refund work for you:

Start something of your own

Starting a business comes with a lot of steps to consider, but it can also provide quite a bit of freedom if you’ve been feeling stuck or uninspired. Depending on the type of business you’re interested in, there will be varying startup expenses involved, so your refund will come in handy for equipment, taxes, license fees, and supplies. If your refund isn’t enough to cover all your needs, you may be able to find outside funding through a loan or investor. Make sure you have a solid business plan written up, as this will show them the details of your products or services, how the business will be structured, and your financial projections for the first year. You’ll also need to plan out marketing expenses, but this will be made easier with free online templates that will allow you to create business cards with your choice of colors, fonts, and images.

Do something just for yourself

If you’re not quite ready to start a business but want to do something that’s just for you, consider using your refund to pay for tuition to go back to school. There are tons of online programs available these days that make it easy to work, take care of a home and family, and learn at the same time. Just make sure the university you choose is accredited and offers competitive tuition rates. If you think you might be interested in starting a business down the road, going back to school for a business degree is a great way to get started.

Start an emergency fund

Going back to school is a wonderful way to do something that’s just for you, but you can also think about how to give yourself peace of mind. If you own a home or are worried about rising prices, starting an emergency fund can relieve some stress. You can take all or a portion of your refund and start a special savings account that’s solely for home repairs or maintenance, car repairs, or other large costs that may pop up without warning.

Make some changes

Thinking of selling your home sometime soon? Use some of your refund to make a few budget-friendly changes around the house and boost its value so you can get the most out of the sale price. Major renovations can be costly, but you can update things like faucets, lighting fixtures, and flooring without breaking the bank, and they’ll make a big difference to potential buyers. Do a little research online to find out what buyers in your area are looking for so you can prep your home to maximize the sale.

There are lots of great ways to put a tax refund to good use, and you don’t have to pick just one. Split up the money and allocate it for a few different things so you can make the most of those funds.

Ready to talk about investments? Contact Beacon Wealth today.

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