5 Smart Ways to Use Your Tax Refund

You can use your tax refund as you please, but using it wisely will bring lots of future rewards. Create a list of goals and mark items which can be achieved with the use of your tax refund. Here are some ideas which may help you spend your refund in a smart manner.TaxRefundSpending

Invest

Consider investing in the stock market. Although doing so comes with risks, selecting the right company to invest in can be quite profitable. The best markets are technology and pharmaceuticals.

Clear Debt

Prepare yourself for a vehicle or home purchase by improving your credit. Go through your credit report, and decide which items on your credit report should be paid off.

Pay Down Loans

If you have vehicle loans or a mortgage, using your tax refund to pay them down is a great idea. You are reducing the interest that you’ll pay and the number of payments left on the loan.

Establish Credit

Making a purchase, such as a vehicle or even a cell phone plan of your own, does help establish credit. Leave your refund alone and use it only to pay for these items.

Save Your Sanity

Sometimes you just need a break from life. Saving your sanity with a relaxing vacation is a smart way to use your tax refund and may help you perform your job duties better upon returning to work.

Think about the things in your life which are the most important, set goals and use your refund in a way which will benefit you the most. Consider items which will benefit you for multiple years rather than short term.

Image credit: Tricia Dawson

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johnAbout john
Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Huddleston Tax CPAs of Seattle & Bellevue
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Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Seatac, Mercer Island, West Seattle, Auburn, Snohomish and Mukilteo. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Tawni Berg, CPA, Jennifer Zhou, CPA, Jessica Chisholm, CPA or Chuck McClure, CPA. Member WSCPA.