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The Absolute Best Way to Use Your Tax Return

By: Michael Millington


It’s tax time yet again. This means many Americans are looking to use their returns for something they’ve had their eye on. Some people like to use their returns to go on vacation or to have a moderate shopping spree. However there are many who don’t have a plan with their return, or don’t plan to do anything beneficial with what they’re getting back. However, there is one particular use for your return you should pay attention to.

 

Investing in Yourself

 

The idea of investing in yourself can mean many different things, but the overall sentiment remains the same. If you’ve been managing your money properly, you might be working with a monthly budget. If you’re smart, your budget doesn’t include things like bonuses, unexpected income or a tax return. So when your tax return comes around, you won’t have it already spent.

So how do you invest in yourself?

Investing in yourself is a process that requires you to honestly assess your personal and financial well being. They are two halves of the same coin, both equally essential to your survival but handled in very different manners. Once you know where you stand on both fronts, you can tell which one (if either) needs your attention.

 

Invest in Your Financial Self

Investing in your financial self can help set you up for a great future. In order to invest in your financial self, you must know what your monetary needs are. If you have debt, look to eliminate it with your return. If your credit is suffering, put your return towards its betterment (securing a loan or credit card, etc.)

If you’re not in financial need but you still find yourself lacking in that area, consider other options to achieve fulfillment. Open a new savings account for a new savings goal. Start your own retirement fund, even if you have a 401k through your job, and have an extra amount of money for your golden years. Build a stock portfolio if you’re interested. Make your money go to work for you.

 

Invest in Your Personal Self

Investing in your personal self isn’t as deep or profound as it might seem. If your finances are completely (or at least adequately) shored up, then consider putting your return towards other things. Before you jump straight to a frivolous idea, think about what you may need.

Does your personal space need redoing? Make a list of things you can change/get rid of/fix and put your return towards it. Maybe a wall needs painting or you have an appliance that needs replacing. Don’t put it off. Get it done now. If you haven’t done so yet, consider getting homeowners or renters insurance for your belongings to avoid “what if” scenarios. Also, don’t underestimate the idea of giving to charity. Not only will it be a positive addition to your taxes, it will help the less fortunate and make you feel good about what you’re doing.

 

The best thing to spend on is yourself, but how you spend will always be important. Prioritize your needs and wants so that when tax time comes around, you’ll know the absolute best way to use your tax return.

 

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