Tax time is often seen as a time of stress, and it certainly isn’t without plenty of that, especially if your filing process is complicated (such as if you own a small business, for example). Still, the aftermath is often a great time for people across the United States as each one starts seeing their tax refund deposited in their bank account. Everyone can use some extra money, and this is doubly true in a time when everyone is facing the economic impact of Covid-19.
Many people see their tax return as money to splurge on something fun or special for themselves, and that’s perfectly fine. Others simply save the money or seek to use it for something more practical. No matter what your motivations are, here are just a few smart ways that you can use your tax return this year.
1. Repay Debts
While far from the most exciting options, one of the smartest things you could do with your tax refund is to get it working on any debts you might have. Using it to attack your highest interest rate credit card, if applicable, is a good strategy to start getting out of debt and repairing your credit score. For any homeowners behind on their mortgages, this is a great time to get caught up. You could even use this money to work ahead a bit to give yourself some breathing room in the future.
2. Get into cryptocurrency.
If you’re not worrying about debt but are instead looking for a new way to invest, you don’t have to be an expert in finances or computers to get into cryptocurrency. In fact, you can start getting into Bitcoin (BTC), Ethereum, and other cryptocurrencies with a simple crypto wallet and trader platform. With the right strategy guide on trading Bitcoin for profit, you can start learning the basics of technical analysis, day trading, or any other strategies that interest you. Great online guides can answer questions you may have about the price of Bitcoin, the easiest way to get into the Bitcoin trade, and anything else you need to know.
3. Fix up your kitchen.
The kitchen is often called the heart of the home, and family and guests alike are typically drawn to it. Because of this, homeowners generally want it to show well. A tax return can be the perfect financial boost to take care of some small improvements to make your kitchen look chic.
You don’t have to worry about replacing expensive appliances if you don’t want to. Instead, a great way to modernize your kitchen is to simply remove cabinet doors and opt for the open shelves look. You might be surprised how much a new color scheme and some fresh paint can change a small kitchen as well. You can make a huge difference without spending a lot of time or going for higher price items.
4. Change up your personal style.
This falls more into splurging territory, but everyone needs to upgrade their style now and then. This could include spending your entire tax return on a new wardrobe if you’re really looking to step out. Alternatively, you could just spend a bit of it on some nice beauty products. Even something as seemingly small as nail stickers can make a statement. Treat yourself to a mani/Pedi day, and think of ways that you can support your new look.
5. Take your career to the next level.
Do you want to get away from the traditional 9:00-5:00 rat race? Have you always wanted to start your own business but just didn’t feel like you had the financial cushion? A good tax return could be that cushion as you get started on turning your dream into reality. Don’t quit your day job just yet, of course. No one says that you have to quit your current job in order to start planning for something better. A fresh cash infusion may be just what you need to push yourself to the next step of your professional life.