April 15 might seem far away, but if you are planning on getting a return, why wait? Get your taxes done now and take advantage of that refund. Here are 23 ways to spend that refund to make the most of that unexpected money.
Tax Refund Ideas
This money isn’t “free” since you have already paid this and usually more over the year, but this money is somewhat unexpected. It isn’t the money you count on every two weeks, or each month to get the bills paid. It is money that you can use to get ahead, without having to sacrifice something else in its place. It is money that you have been waiting for, but hopefully not spending on credit and planning to pay back. Don’t ever spend your tax refund money before it is actually in your bank account. So, to get ahead financially, here are some options of how to best spend that money.
- Open a savings account.
- Pay off a small debt.
- Add to a larger debt to pay it down, like an automobile payment or a mortgage.
- Invest into college accounts for kids.
- Use to pay for a vacation with cash, not credit.
- Buy necessities for the house, like cleaning supplies, toilet paper, diapers – those items that can break your grocery budget, but that are a necessity.
- Put money in an account for school clothes in the fall, for Christmas or for other events and expenses you know will be coming up.
- Use the money to increase your food storage – watch for case lot sales!
- Deposit into your emergency fund
- Open a retirement account or simply add to your retirement accounts.
- Purchase upgrades for your home, with this cash, not with a credit card like furniture, lights, paint or carpet.
- Donate to your favorite charity.
- Make necessary vehicle repairs.
- Enjoy a staycation with your family.
- Divide part of the money up between children and deposit it into each of their savings accounts.
- Open a CD to earn more interest than a savings account.
- Make a purchase you have been waiting to make like a new phone, laptop, new TV, etc.
- Use as a down payment to a new car.
- Make advanced pays on certain bills.
- Increase outside curb appeal of your home to increase resale value.
- Pay for dentist or doctor visits and co-pays.
- Use the money for tuition to start going back to school.
- Apply to a down payment for your own home.
There are a variety of good uses for your tax refund money. If you are smart, you will wait to see exactly how much money you are refunded before you start to spend it. Think about how to make this refund do the most for your financial situation. Get your taxes done and start enjoying the unexpected money!