Tax Refund Rich: 5 Things You Need to Do Now With Your Tax Refund

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Tax Refund Rich

adjective. a term used to describe those individuals who have temporary enhanced cash flow due to the receipt of a tax refund. You can often spot these individuals doing an excessive amount of shopping, bottle popping in the club, and wearing top of the line hair extensions between the months of February and April.

 

LADIES, LADIES, LADIES it is the best and worst time of the year, what time is that, Tax Time! Right now, some of you are beaming with excitement anticipating the tax refund that is going to hit your bank account. However, some of you are dreading the time you have to hand Uncle Sam over some MORE of your money. For those of you ladies who are about to get a boost in your bank account, this is for you. Here are five things to do with your tax refund.

 

1) Start a business
My favorite B word, business! If you are going to obtain financial freedom, it is wise to have multiple streams of income. One of the best ways to do that is through a business. There are a plethora of business ideas and structures to choose from, whether it be direct sales, affiliate marketing, franchising, traditional home based business, or a brick and mortar business. Find a business model that works for you and get started now.

2) Invest
Have you been interested in investing, but never had enough funds to do so? Take that tax refund and put it to work! There is nothing like having your money work for you. Of course, before you jump out there and start dropping money and the first hot stock tip, do your research. It’s easy to lose your tax refund if you do not know what you are doing. I cannot emphasize this enough, do your research! Morningstar is a great resource for investing newbies. The world of investing is vast, from bonds to mutual funds to real-estate. Figure out what works for you and your cash-flow and get to investing!

3) Take a vacation
Listen, you cannot live your life with all work and no reward. Travel and vacations are important for your physical and mental health. When you feel good, you work better, which ultimately leads to an improvement in your personal finances. Depending upon the amount you receive from your tax refund, take a portion of it and put towards a nice vacation. Not a Motel 6 type of vacation, but a resort-on-the-beach-with-room-service type of vacation. I recommend Jetsetter or DunHill Travel Deals. Both of these sites, have great high end vacation packages for great prices.

4) Save
Is your savings account looking bleak right now? Fill it up! A tax refund allows you to make additional boosts to your savings throughout the year. Some people have trouble saving the recommended 10% of their monthly income every month. A tax refund can provide the opportunity to catch up on your savings goal for those times when you miss the mark.

5) Pay off debt
Sorry doll, you know we had to talk about the big bad D word. What better way to make a dent in your debt but with a tax refund? Imagine having one less credit card balance on your financial statement? What could you do with the extra savings throughout the year, now that you do not have to pay that monthly credit card bill? That could be extra savings, extra splurge foods or extra nights out with the girls.

There you have it, 5 great ways to use your tax refund effectively right now!

 

MissCFO Takeaway: Use your tax refund wisely. Don’t subscribe to the the tax refund rich crew.

 

MissCFO : Are you expecting a tax refund this year? If so, what are two things you are planning to do with it?

 

Make sure you like, share and comment below with your answer.

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Tiffaney Graham

Tiffaney is a proud alumna of Spelman College, former financial analyst and financial literacy teacher. When she is not running MissCFO, she can be found cooking in the kitchen with her love, playing with her boys or plotting out her next world adventure. Keep up with her at
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