Waiting for that big tax refund to come your way? Certainly, you’re excited to figure out what you want to do with that windfall of cash.
Well, today we’re looking at some of the best ways to spend your tax refund. From fun splurges to sensible investments, there are a number of options.
Best Ways to Spend Your Tax Refund
Savings Account
Do you have a savings account with $1,000 in it? If not, getting started towards that goal is a good thing to do with your tax money. It’s good to have that kind of emergency fund squirreled away in case of an unexpected expense.
It can be difficult to answer sudden expenses like car repairs or broken appliances, so having a rainy day fund is important.
Bills
It can also be helpful, from a financial wisdom standpoint, to pay ahead some bills. If you own your home, paying ahead on your mortgage is a good idea. Putting yourself a month ahead on your car payment, electrical bill, car insurance or even your subscription services can all be a good move.
This not only gives you some space on your finances, but it also feels like you’re not “blowing” your refund. That said, by paying your bills ahead, you have a bit more spending money for things you want to buy.
Tattoo
Many people consider refund season to be tattoo season. Tattoos are exactly the right cost for the average tax refund. Between $300-$700 for the average tattoo means that it’s a great price range for getting new ink. There are a lot of reasons to consider spending your refund on a tattoo if you’re looking to splurge a bit.
Firstly, tattoos last for your lifetime. That means it’s money well-spent to get a tattoo that means a lot to you on your body. Secondly, it’s easy to overthink what you’re going to spend your refund on.
Why not get that tattoo you’ve been eyeing for years?
High-Interest Debts
High-interest debts are a huge pain. If you’ve got credit card bills or student loans that are compounding interest in the wrong direction, consider paying them down with your tax refund.
This way, you’re not only lightening your bills, but you’re also buying your future financial security. There are countless other fun or responsible things you can do with your refund, of course. However, no matter what you do, just make sure you spend your money in a way you won’t regret. It’s yours, after all!