Yay, you just got a tax refund! Whether it’s a small windfall or a substantial sum of money, figuring out what to do with it can be both exciting and daunting. What to do with your tax refund? Should you splurge on something fun, save it for a rainy day, or invest for the future? Here are 25 smart and fun ways to make the most of your tax refund.
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What to Do with Your Tax Refund
It’s tax time and you’re either paying taxes or getting money back.
As a self-employed person, I won’t be getting money back (I had to pay).
But there was a time when I worked for an employer and got a nice chunk of money back after filing taxes.
Some years I had student loans or car loans and I decided to pay some money down with the refund.
One year I put the money towards a trip to Spain.
Instead of just dribbling your tax refund away on lattes (note to self), I try to make a deliberate decision what to spend the tax refund money on.
Here are 25 fun and smart ideas of what you can do with your tax money if you get a tax refund:
- Treat yourself to a fancy dinner at your favorite restaurant.
- Upgrade your wardrobe with some fun new clothes (I just picked up a pretty white floral dress – who doesn’t love dresses with pockets? lol)
- Invest in a new hobby or skill, like photography or cooking classes.
- Plan a weekend getaway to a nearby city or beach.
- Start a rainy day fund for unexpected expenses.
- Splurge on a spa day for some well-deserved pampering.
- Upgrade your tech gadgets, like a new phone or laptop.
- Invest in your health with a gym membership or fitness classes.
- Explore local attractions and activities, like museums or outdoor adventures.
- Start a home improvement project, like redecorating a room or upgrading appliances (here are some budget-friendly ideas).
- Invest in stocks or start a retirement account for long-term financial growth (use this tracker to find out your net worth).
- Treat yourself to a shopping spree at your favorite stores.
- Upgrade your home entertainment system with a new TV or speakers.
- Donate to a charity or cause that’s important to you.
- Invest in self-care products, like skincare or relaxation items.
- Plan a fun night out with friends, like a dinner party or game night.
- Start a travel fund for future vacations or adventures (here are the best cheap ways to travel if you have big wanderlust but a small budget)
- Invest in educational courses or workshops to expand your knowledge.
- Treat yourself to a luxury experience, like a fancy hotel stay or a gourmet meal.
- Upgrade your car with new accessories or maintenance (I have an appointment with my dealership to do this tomorrow)
- Invest in a side hustle (here are 35 unique side jobs that pay well) or small business (here are 18 home business ideas you could start this week).
- Treat yourself to a spa day for some relaxation and rejuvenation.
- Start an emergency fund for unexpected expenses.
- Invest in home automation or smart devices for convenience.
- Plan a dream vacation or bucket-list trip (here are 18 budget travel ideas to explore the world)
What do you do with your tax refund? Do you get a tax refund? Share in the comments!
Pin the pic below on tax refunds to save it for later 👇
