7 Smartest Things to Do With Your Tax Refund this Year

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Will you be receiving a tax refund this year?

Sure you could blow it all on stuff you won’t remember in a year.

OR you can boost your financial future.

A tax refund may not seem like much, but it can make all the difference on your path to financial freedom. Every step on the journey counts!

Key Takeaway: Use all the money for one idea or split it up between several. Do what works best for your lifestyle and goals.

1. Pay off Nagging Debts

First, if you have debt weighing you down, give yourself the peace of mind of paying it down (or off). You’ll feel a huge relief, improve your credit score, and boost your financial future.

And you’ll no longer be robbing your future self!

Use the free debt trackers to see your progress >>

2. Boost Emergency Savings

Do you have 3-6 months in cash for emergencies? If not, put your tax refund towards your financial security.

best emergency fund money challenge and free tracker

Of course, hope for the best in life. But you’ll also never regret being prepared for the worst.

Try an emergency fund challenge if you have a lot to save.

3. Invest in Retirement Accounts (401(K) & IRA

Not only does this benefit your future self, but it also may lower your tax bill now. You pay less now while giving yourself a gift for later!

Plus, your money has years to accumulate and benefit from compound interest. It’s the gift that keeps on giving!

See more benefits of saving to learn why saving for retirement is such an amazing decision.

4. Contribute to a health savings account (HSA)

What is an HSA? It’s a tax-advantaged savings account you can use for qualified medical expenses. Things like deductibles, copayments, prescriptions, and even some over-the-counter medicines.

By putting money into your HSA to use, you

  • can save significantly overall
  • don’t have to dip into your regular savings

5. Invest in Your Future Self

invest in yourself examples for women featured image

There are many great ways to do this. Here are just a few:

  • Add money to an educational savings fund for yourself, your children, or other family members.
  • Invest now in added professional development courses and certifications.
  • Start a small business or invest in an existing one to generate additional income streams.

Educating yourself makes you more valuable in your field – leading to higher impact and income.

See more epic ways to invest in yourself >>

6. Save for a down payment

Use your tax refund to save for a new home or investment property. You’ll build equity and wealth over time. Plus, if you save 20% down, you’ll avoid the extra PMI insurance that borrowers like to stick on low-equity mortgages.

If you already live in a home, make home improvements to increase property value.

Grab a free home downpayment savings tracker >>

7. Donate to Charity

Finally, using your tax refund to support positive causes is a great way to make a profound impact AND practice the art of generosity.

It trains your mind to believe that money isn’t just meant to be hoarded. It’s meant to change the world.

See more financial abundance exercises to start training your mind.

What if your Tax Refund is $5,000+?

You’re letting the government hold too much of your money for you. Look at your withholdings and tweak them so that you keep more of your own money during the year!

Then, use that extra paycheck boost towards any of the amazing ideas above.

woman looking at her calculator, smart tax refund strategies

What’s Next?

Next, sign up to the Wealthy Woman Newsletter for ongoing ideas that build your cash stash every day. You’ll love how empowered and inspired you feel, plus gain access to great freebies.

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