It’s tax refund time again!
That’s right—depending on which of the income tax brackets for 2022 you fall under, you could be looking at a sizable chunk of money. And now that you have it, you should use it to get closer to your goals instead of blowing it.
If you don’t plan how you will spend it, then it will just slowly disappear in your account, right? Well, if you have a budget, that shouldn’t happen, but you definitely need a plan for that money.
If you are in debt, that should be your first priority.
Now that all of that is out of the way…
Here are 33 quick tips, including some very unique tips, for spending your tax refund effectively and productively…
Build Your Foundation
Pay Off Debt
4. Use the debt snowball to off as much debt as possible.
5. Pay off credit card debt.
6. Pay off those student loans.
7. Pay off your vehicle.
8. Put money towards the principle on your mortgage.
9. Pay off those medical bills.
10. Pay all of your expenses for this month, and from now on start paying for next month with this month’s income.
11. Start saving for a big-ticket item.
12. Start or contribute to your children’s education account, such as a 529.
13. Start making debt-free car payments.
14. Pay your car insurance in advance (6 months, 12 months, etc.)
15. Buy gifts in advance for the holidays.
16. Stock up on non-perishable items.
17. Create your legal will.
18. Buy individual stocks.
19. Add an ETF to your portfolio.
20. Add one of the 3 mutual funds from FoolFunds.com to your portfolio.
21. Start a DRIP.
22. Make a large contribution to your company retirement account.
23. Give to your church.
24. Give to a charity or organization.
25. Spend a day downtown buying food for the homeless.
26. Pay off someone else’s debt (parent, child, friend, etc.).
Do Something for Yourself
Remember, if you’re in debt, the debt comes first.
27. Start a home business.
28. Go back to school or take a class online.
29. Take a vacation.
30. Hire a maid to clean the house for a few days or even a few weeks.
31. Do a home improvement project that will increase the value on your house.
32. Make your home more energy efficient.
33. Buy something that you have wanted, but not wanted to spend the money on.
I could go on for days, but 33 is enough for this year.
Do what is right for you. Debt should be your first priority.
Once you are debt free, you will have extra money all year, not just during tax season.
Photo Credit: Nick Ares