By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

123mm.xyz

  • Lifestyle
    LifestyleShow More
    8 Moving Hacks That Make Packing Up So Much Easier
    8 Min Read
    Summer Dinner Recipes for When It’s Too Hot to Cook
    2 Min Read
    All the Frozen Pastas At Trader Joe’s, Ranked
    8 Min Read
    Easy Dinner Recipes For When You Don’t Want To Cook
    3 Min Read
    How to Decide on a Wedding Budget That Works for You
    8 Min Read
  • Finance
    FinanceShow More
    Productivity Tips for When Summer Is Calling Your Name
    9 Min Read
    How Mindfulness Can Help Level Up Your Finances
    9 Min Read
    Money Questions Newlyweds Should Ask Each Other
    8 Min Read
    Expert Financial Advice Everyone Should Follow
    11 Min Read
    Meet Evernote: Our Best Kept Secret for Staying Ahead of the Workplace
    8 Min Read
  • Sex
    SexShow More
    The Sex Position to Try Based on Your Enneagram
    9 Min Read
    5 Habits That Can Boost Your Sex Life
    9 Min Read
    Why Are Milenials Having Less Sex?
    8 Min Read
    Does Size Really Matter? We’re Breaking It Down
    7 Min Read
    10 Sex Positions To Try When It’s Too Hot To Function
    10 Min Read
  • Sport
    SportShow More
    Why 2022 Should Be the Year You Start Weight Lifting
    9 Min Read
    The Best Fitness Tips From Shay Mitchell’s Trainer
    14 Min Read
    The Workout Motivation Tips Our Editors Swear By
    8 Min Read
    Fitness Tips To Follow if You Hate Working Out
    7 Min Read
    6 Ways to Feel More Toned By Tomorrow
    7 Min Read
  • Tech
    TechShow More
    What is Deepnude and How to Protect Yourself
    4 Min Read
    OnePlus Nord CE 2 review
    15 Min Read
    Nubia Red Magic 7 review
    19 Min Read
    Realme 9 review
    17 Min Read
    Breville Barista Max review
    12 Min Read
  • Contact
  • English
    • Русский
    • Українська
    • Polski
    • Deutsch
Reading: 7 Things Successful Women Use Their Tax Refund For
Aa

123mm.xyz

Aa
  • Lifestyle
  • Finance
  • Sex
  • Sport
  • Tech
  • Contact
  • English
Search
  • Lifestyle
  • Finance
  • Sex
  • Sport
  • Tech
  • Contact
  • English
    • Русский
    • Українська
    • Polski
    • Deutsch
123mm.xyz > Finance > 7 Things Successful Women Use Their Tax Refund For
Finance

7 Things Successful Women Use Their Tax Refund For

Dilan Shields
Last updated: 2023/10/30 at 6:31 PM
By Dilan Shields 8 Min Read
Share
SHARE

There are never any real fans of tax season (besides your accountant and the IRS, of course) when it rolls around each year. Although tax season can feel daunting, it’s a good time to gauge where your money is going each year and how much of it is coming back (and hopefully, a good chunk will come back).

Contents
1. Pay down debt2. Build up your emergency savings fund3. Begin investing4. Start your side hustle5. Donate to a charity or cause6. Improve your home7. Treat yourself to something special

If all goes well, tax season can mean getting some extra money in the bank for many of us; the average tax refund this year is $2,323, according to the IRS. These refunds come at a crucial time for many right now, as inflation in gas prices, living expenses, and even groceries are stretching many homes financially.

Have a little money left over from your tax return this year? Here are a few ways you can maximize the extra few dollars from your tax refund.

1. Pay down debt

If you received a tax refund this year, a great way to use it is to pay down some of your debt. Some good areas to tackle are credit card balances, personal loans with high interest rates, car loans, and student loans.

Paying down these debts using the extra funds from your taxes helps you avoid the pesky interest that continues to accrue on your accounts on a monthly and sometimes daily basis. By making extra payments or paying off some debt completely, you’ll also see your credit score start to rise. No longer staring at a hefty credit card statement will be a huge weight lifted, too.

More Read

Productivity Tips for When Summer Is Calling Your Name
How Mindfulness Can Help Level Up Your Finances
Money Questions Newlyweds Should Ask Each Other

2. Build up your emergency savings fund

Your savings is a crucial part of your finances and budget, giving you the cushion you need for unexpected financial emergencies. If you received an expected (or even better, unexpected) windfall from your tax refund, consider beefing up your emergency savings fund.

Set aside some funds and put it into your savings account for a rainy day. Traditionally, an emergency savings fund houses six to nine months of living expenses in case of an unexpected financial difficulty, like losing your job or unforeseen medical fees. That six to nine months is a lofty goal, of course, but using your tax refund to get started or boost the savings you do have is smart choice. Future you will be glad you did.

3. Begin investing

If you haven’t started investing, using the funds from your tax refund is a great way to get in the game. There are so many ways to invest, from increasing your 401(k) contributions to putting your money in cryptocurrency. Many online trading sites offer first-time investors incentives, from a low-cost entry fee in order to open up your portfolio to education and resources to use to learn more about the stock market and trading.

If you’re looking to use your tax refund to invest, educate yourself on the risks of each type of investing strategy. Find the best investment strategy that works for you to start or continue your investment portfolio.

tax-refund-uses-teg-in-article-1

Source: Color Joy Stock

4. Start your side hustle

How about using your tax refund to make more money? Invest in yourself by using your tax refund money to start or fund your side hustle. Spend it on the resources and tools you need to enhance other streams of revenue. Purchase and set up your home office for your freelance gig or your own business if it requires it. Use your refund to buy professional equipment to kickstart or enhance your side hustle.

Invest in online sessions, trainings, and other resources using your tax refund to learn as much as you can about your interests and how to turn them into a lucrative business to increase your streams of income. Using your tax refund on your side hustle is a great way to flip and multiply your money.

5. Donate to a charity or cause

A few extra dollars in your pocket can go a long way for someone else. Consider investing in someone else by supporting a cause or charity with your tax refund. Your monetary donation can help improve someone else’s life.

Start with assessing charities and causes that are close to you and giving more to those causes this year. Not sure where to put your money? Ask family, friends, or coworkers to suggest some important causes you can contribute to.

Don’t forget to take advantage of your company’s gift matching program if they have one available. Employee gift matching programs typically match a certain percentage or all of your contribution to an approved charity, event, or cause, which doubles the donation made to that charity. It’s a great way to give back even more, with the help of your company.

Charitable donations made this year can also go toward your itemized deductions for next year’s tax season, so use your tax refund to give back to others, and it will come right back to you next year. It’s a win-win for everyone!

6. Improve your home

Still working around that leaky faucet? Need extra funds to finish that project around the house? Consider using your tax refund to make much-needed improvements to your home. Improving your home can increase your home’s value over time, adding to your equity and your overall wealth.

Using your tax refund on your home can have benefits for next tax season too; some energy-efficient home improvements like installing solar panels to your home or replacing major appliances like your water heater could be written off as a tax credit next year. Improving your home to sell it soon can also be used on next year’s taxes. When you sell your home, you are able to write off the profits from your sale and add the renovations you made as well to apply to your taxes next year.

7. Treat yourself to something special

Let’s be honest: You worked so hard last year. Treat yourself a little with the money back from your tax refund. Whether you’re overdue for a spa day, looking to travel and take a much-needed vacation, or still eyeing those new shoes in your Amazon shopping cart, splurge a little on yourself with your tax refund.

Take time to enjoy the fruits of your labor (literally!) with a little treat for yourself this tax season. Even if it doesn’t help grow your wealth, spending some refund dollars on self-care is essential to your physical, emotional, and mental health. This year, budget out a few dollars from your refund to use on yourself. We know you deserve it!

Dilan Shields 20/11/2023
Share this Article
Facebook Twitter Email Copy Link Print

Editor's Pick

How Mindfulness Can Help Level Up Your Finances
Why Canva Is My Go-To Hack for Decorating My Home
How to Have Hot Sex—Even In Isolation
5 Habits to Keep You in Shape, According to a Fitness Pro
The Lazy Girl’s Guide To Tax Season

More Popular

Sport

Why Rest Days Are Crucial For Your Workout Routine

By Dilan Shields 6 Min Read

What to Do If Your Partner Doesn’t Go Down On You

By Dilan Shields
Sex

I Got Ghosted After Sex—Does That Mean I’m Bad in Bed?

By Dilan Shields 10 Min Read
- Advertisement -
Ad image
Sex

How Your Attachment Style May Affect Your Sex Life

Perhaps summer love is in the air—or maybe I’ve just been watching too many reruns of…

By Dilan Shields
Lifestyle

The Best Journal Prompts for Each Enneagram Type

The Enneagram test can be an enlightening tool for self-discovery. Knowing your type gives you insight…

By Dilan Shields
Sport

10 Ways Yoga Drastically Changed My Life

Thanks to mainstream media, many of us know yoga as a workout that involves breathing, different…

By Dilan Shields
Sport

5 Habits to Keep You in Shape, According to a Fitness Pro

As a strength and conditioning coach, fitness takes up most of my daily life, between coaching…

By Dilan Shields
Sex

How Can You Fix a ‘Bad Kisser’?

Remember when everyone said we’d remember our first kiss forever? Well, I wish I could forget…

By Dilan Shields

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?