Many people view their tax refund as “free money,” and blow it on a vacation or shopping spree. But the reality is that your tax return is a part of your annual income. It is money you worked hard for. Our consumer loans experts encourage you to reconsider what you do with your tax refund this spring. Instead of splurging on material goods, try continuing your good fortune in a way that will give you a better financial cushion: Invest your tax refund.
Read on to learn how to invest your tax return and grow your income below:
How To Invest Your Tax Refund
We suggest investing your tax refund in these three ways:
1. Put it in a savings account
It may seem simple, but it’s effective. According to a 2016 GoBankingRates Survey, 69% of Americans have less than $1,000 in their savings account, and 34% have no savings at all. Even if you only put a few hundred dollars in your savings, you would be better off than 34% of Americans. If you invested your entire tax refund (the average of $3,120), you would be three times better off than the majority of your peers.
2. Make an investment
Perhaps you’ve wanted to make a large investment, but you’ve been waiting for that financial cushion to allow you to do so. Since your tax refund is money you didn’t technically have, use it to take a calculated risk. Invest the tax refund in real estate, a tech startup, or an up-and-coming stock.
3. Pay off a high-interest loan
Using your tax refund to pay off a high-interest loan can save thousands of dollars in the long run. It could also ease your financial burden because it saves you the money you would be using to make your monthly loan payments.
How To invest Your Tax Return: Additional Options
If you’re unsure about how to invest your tax refund even with the three options above, consult a certified financial planner. While it is up to you what you do with your money, finance experts will give you more insight regarding each option and guide you through your first steps. By making smart choices with your money now, you are setting yourself up for a comfortable financial future.
If you’re looking to invest your tax refund in a sizable project that needs additional funding, our experts will process your Minute Loan Center loan application and loan you money to launch your project successfully. Apply online or visit us at a location near you to get you started. We’ll help you apply for a loan!
Kevin brings over 15 years of experience in marketing, with a specialized expertise in growing online businesses. As the Director of Marketing at a leading FINtech company, he employs innovative strategies to enhance brand visibility and customer engagement. Kevin’s passion lies at the intersection of technology and finance, where he pioneers solutions that not only meet but exceed consumer expectations. His commitment to leveraging his expertise ensures impactful results and the building of lasting relationships in the digital landscape.
