IRS has pushed tax refunds back until February which can be a good thing or a bad thing depending on you. Today, I wanted to break down how to invest your tax refund wisely so you are reaping the benefits not just for a couple weeks but throughout this entire year. Too many people receive refunds of a thousand or more and it goes to things like a trip, car or a tv. Things that truly do not hold their value or help you in the long run.
Save 10% Of Refund
First things first, saving 10% of your tax refund is one of the smartest investments you can make for yourself. Either utilize your current banking establishment or start doing the market research for an online savings account. Saving 10% every time you make or earn money builds a lifestyle choice verse feeling like a chore.
Pay Off Your Debt
This is something I am very adamant about. If you have the coinage to remove the debt from your life do it. Oh well, you don’t get the luxury handbag or fancy 60-inch tv. The peace of being debt free is completely beautiful. Pull out your debt tracker to outline the money you owe to others. Remember it’s all about doing the smallest to largest in snowball effect so you can feel the momentum with paying it off.
Pay For Service In Full
If you have been wanting to hire a business consultant or get your website done by your dream designer invest the money in full. This way if later on, you hit a hiccup in your finances you are able to continue on with your project. I had clients in the past have everything going fine then the next thing you know life happens. Consulting is truly an affordable luxury, but at times it’s truly necessary to go higher in your business. Any service business owner would appreciate you paying your contract in full. Just make sure you handle all the legal stuff.
When my clients come into a little extra money that pads their bank account, I always suggest treating themselves. I am not telling you to go buy a Louis Vuitton bag or something really expensive. However, you can go to the outlet mall and buy you some nice pieces for your wardrobe. Or you can take your treat money and spend it with another small business.
Invest In New Technology
Before purchasing my two-year-old MacBook Air, I had a super old Macbook pro that was gifted to me. I am beyond thankful to have that to use, but even more thankful for a faster-running computer. I use to be that person who updated their iphone yearly, now I know better. However, if your iPhone screen is cracked and you can barely use it, the time is now to upgrade since you have the money.
Update Your Branding
Funny story, Imperfect Concepts website has changed yearly because I am always wanting a fresh facelift to make my audience wow. I believe in branding that resonates with them and their audience. In the past, I have seen clients pick trendy designs when it came to their branding within a year or longer they wanted to change their entire brand and more. If you have been eyeing a graphic designer or some build it yourself options on Creative Market take the time to invest in it.
You should be able to do at least two of these six tips on this list with your tax refund. Make the wise investment to set yourself up for success this year.