5 Ways to Spend Your Tax Refund

This blog post was written as part of a sponsored program for State Farm®. All views expressed are entirely my own.

As a business owner, I dread tax season. Gathering receipts, documents and information needed to file, can be a tedious task in itself.  For years, I have completed our tax returns using Turbo Tax and have been very happy with my results. It’s simple software that makes filing our tax return a lot less daunting for this busy momma. In fact, most people reported filing their taxes using Turbo Tax or a personal accountant.

If you have procrastinator tendencies like I do, you’re probably scrambling to ensure you meet this year’s April 18th deadline. The great news is that some of you will probably be receiving a tax refund this year, so today I want to give you a few ideas on how you can spend your tax refund. As a business owner, I have to make smart financial choices in order to ensure that my money goes further. And you can do the same by using your tax refund wisely and making it work as hard as you do!

5 Ways to Spend Your Tax Refund

Pay off debt

If you have student loans, credit card debt or any other personal debt, now is a great time to pay it down. If you’re receiving a tax refund this year, consider paying off debt instead of using it to upgrade electronics or go on trips. Even making one extra mortgage payment each year can shave off years of mortgage payments, and yield thousands of dollars in savings.

Invest in your dream

Dreaming of starting your own business? Or perhaps your dream is to update a room in your home? Consider using your tax refund to go forward and take the next step. The year that I started this blog was right around tax season. I was able to invest in my domain name, web hosting, and an inexpensive blog theme. It was the best investment I have ever made with my tax refund. I know that not everyone dreams of owning a business, but even a small sideline business can be a great source of income for your family.

Purchase life insurance

Life insurance is typically something we don’t want to discuss, or even think about. However if you’re a mom, you want to ensure that your family’s needs are taken care of in the event that you’re absent. As moms, we bring a lot of value to our home that goes beyond finances. We work, cook, clean, and provide things that would require money in order to be replaced. Not sure where to start? A State Farm agent can help you determine the level of coverage that’s right for you.

Save for the long-term

Tax season is the perfect time to consider working toward a long-term goal like starting an IRA to help save for retirement. Meet with a financial expert to understand your options, make contributions, and reassess your financial state. Whether you are saving for retirement, college or purchasing a home, saving your tax refund will help you reach your long-term goals faster.

Fund an experience

This can be anything that you and your family have been wanting to experience. We often hear how about the smart ways to spend our tax refunds, but sometimes it’s not all about money. In our home, we always make it a point to put some money towards an experience that our family enjoys. It could be a short trip to a family-friendly destination, or trying something we’ve always wanted to do together. The memories we’ve created have been invaluable. I’ve always believed that making wise financial choices is the smart route to take, but time doesn’t pause just because you’re saving or paying off debt. It’s OK to live a little.

There are tons of resources out there, including State Farm Learning Center which has several articles I found to be helpful, along with Nerd Wallet and Free from Broke.

Have you filed your tax return yet? How do you plan on spending your refund? I’d love to hear from you! Also make sure to check out the infographic below to see how others spend their tax refund.

 

This blog post was written as part of a sponsored program for State Farm. All views expressed are entirely my own.