How to Spend Your Tax Return This Year | Tax season is always a time of the year with much fanfare and excitement. The average U.S. tax return in 2020 cashed in at a whopping $2,707! That’s a lot of additional spending power that Americans are able to capitalize on, just by the merit of paying their serialized contributions with every paycheck.
Using this infusion for the benefit of your family or lifestyle is another matter altogether. While a small minority of recipients typically pushes this return straight into investments, many others pay off credit card obligations.
Still others save for retirement or choose to splurge on a holiday or extravagant shopping spree. A day at the mall among your favorite stores and service providers, such as a stick on nail visit or full manicure, might sound like a fantastic day out to many.
The best way to utilize this additional cash often lies somewhere in between these singular options, though. Allocating these funds on a variety of necessities or using the refund to jumpstart a renovation project both offer excellent advantages to homeowners looking to maximize the utility of this quasi-surprise addition to the bank account. Selecting a big picture project or allocating a portion of your refund to a number of pools can help you to jump ahead of any cash flow issues you may have been experiencing and remain there until the next April check arrives.
Invest for the Future
Investing is a great way to leverage your tax return into a fantastic financial position. Using a trading strategy that will produce growth over time is the perfect way to lock in profit with this unbudgeted capital. Traders love the opportunity to take advantage of a sudden windfall, and tax season provides perhaps the best addition to portfolios of any time of the year.
With a library of perennially durable trading strategies and a portfolio with diversified assets, building wealth for the future can be as simple as modest monthly savings that are boosted by yearly contributions of a portion or the sum of your tax return.
Durable Home Improvement Projects
Remodeling is a great way to boost your home’s value and improve your quality of life at the same time. Building a chef-quality kitchen is one great way to improve your comfort and happiness at home. Homeowners love adding stainless steel appliances and state-of-the-art cooking utensils, like a new set of knives with razor sharp blades. High quality kitchen appliances give home cooks a time saving and enjoyable experience in the kitchen. After all, this is a space that you use on a daily basis, so making it comfortable and enjoyable is a great use of additional capital (with the addition of a new chef’s knife, paring knife, or granite countertops).
If durable stainless steel appliances and cooking surfaces already grace your culinary space, the improvement of your knives might be the perfect addition. Knives are a staple in the kitchen, and a sharp edge is the pinnacle of home cooking and professional, chef-created dishes alike. Knives provide the initial contact with many of the meats, vegetables, and other foods that you will eventually consume.
Adding a set of knives (a bread knife, paring knife, chef’s knife, and others) that are durable and offer unparalleled sharpness can help cut down on your cooking time as well as the frustration that often accompanies home chefs who seem to endlessly grate through onions, garlic, or carrots with a dull set of knives. Bringing in replacement blades that can slice your foods can help make for a more enjoyable cooking experience and improve the quality of your finished product as well. Knives are a great addition (and are often incredibly affordable) with the funding made available with your tax refund.
However you choose to use your tax refund, make sure it’s targeting quality of life changes that will provide long term benefits for you and your family.