If you're like many Americans who received a tax refund this year, you have an extra $2,833 in your pocket. And while that might feel like a windfall, the reality is that your tax refund isn't free money; instead, it's money you have worked for, and money that you should put to work for you. Avoid the temptation to splurge, and consider ways this money could be used to best benefit your entire family. Here are a few suggestions.
Upgrade or Repair Your Home
Whether you ignore it or not, there's a good chance that your home needs some attention. Things like a leaking roof, failing hot water heater, and frayed carpet are all things that can diminish your quality of life or, even more concerning, cause permanent damage to your house. Consider using your tax refund to fix problems at home that you've put on the back burner.
If your hardwood floors are damaged, for example, you might want to invest in getting them refinished, which costs $1,684 on average. This work can include sanding the floors and removing discoloration and gouges. If you'd prefer a more affordable fix, your hardwood floors can simply be recoated, which is less labor-intensive than refinished flooring. Other items to pay close attention to that may be great candidates for your newfound home-improvement dollars include replacing the windows; having the HVAC, electrical, and plumbing systems serviced; getting a new roof; or installing a fence around your backyard.
Invest in Your Future
Even if your tax refund was much less, that doesn't make it any less valuable if you use it wisely. If you only have $500 to spare, you can start investing. According to Phil Town of Rule 1 Investing, the best way to invest is to first learn the process and then make sure to put your money into something you love and understand. This might be stocks or bonds, or something more hands-on, like opening a business.
Starting your own business is the most personal kind of investment, since it not only requires money but also time and dedication, too. There are many ways to start a business with $1,000 or less, and having a bit of capital in hand is a great way to give yourself a head start. ToughNickel.com's Tom Corson-Knowles offers numerous suggestions, from writing and publishing a book to selling farm-fresh eggs from the backyard. While some of these may seem outlandish, keep in mind that the wealthiest people always have more than one revenue stream, and sometimes they aren't the most conventional.
Splurge on Your Health
Let's face it: There's a very strong possibility that you're not spending as much time exercising as you'd like. Whether it's because working out seems inaccessible or you're simply too busy to carve out time in your schedule, something is holding you back. Living a sedentary lifestyle, however, can lead to a number of health risks, including heart disease, certain types of cancer, obesity, and even anxiety and depression. However, there are methods of fighting back.
According to The Everygirl, there are ways you can stay active without derailing your productivity, such as taking a walk on your lunch break, sitting on an exercise ball (which Amazon sells for $23.97), or taking a 10-minute break to do some quick exercises. If you're a business owner and have a bit more wiggle room in terms of what you can add to your office, look into portable equipment like a stair climber or under-desk elliptical.
Just to reiterate, your tax refund is not a bonus, and it isn't money the government gives you. It's cash that's been withheld from your paycheck throughout the year and has been sitting in an account somewhere doing absolutely nothing for you. However, now that it's back in your possession, you can put it to good use by making home repairs, investing in your financial future, boosting your health, or creating bonds and memories with your family that will last a lifetime.
Article submitted by Jim McKinley
