11 Smart Ways to Use Your Tax Refund

If you deducted more than was needed from your pay throughout the year, tax season can deliver one of the biggest annual “bonus checks” you might receive—even though it’s not technically a bonus since it’s your money you’re getting back in the first place.

Going through the actual process of filing your taxes can be tedious, but if you end up receiving a refund once it’s all said and done, it can be exciting to think about how to use the money. It’s easy to daydream about taking an exotic vacation, buying a new TV, or splurging at your favorite restaurants, but are those the best money moves you can make?

Planning ahead before you receive your tax refund can help you avoid the temptation to spend it completely frivolously.

Instead of splurging on something you want, consider putting your tax refund towards something you need—or better yet, toward something that can help improve your overall financial situation.

That’s not to say there isn’t room for a bit of both fun and responsibility—there are plenty of ways to incorporate both. But planning ahead before you receive your tax refund can help you avoid the temptation to spend it completely frivolously.

To help you decide on the best way to allocate your refund, here are 11 powerful moves to make with your tax return before that money starts burning a hole in your pocket.

1. Fund a retirement account

It’s impossible to know what the future holds, but one thing is certain—having money grow passively in the background for whenever you need it is probably a good idea. Getting into investing can be intimidating, but modern technology is making it easier to make this valuable financial move.

Stash is an investment tool known to be especially user-friendly for first-time investors. It’s easy to sign up, and you can add money to your account as little or often as you’d like in increments that make sense for you. With as little as $1, you can start investing and building your portfolio. You can even learn a thing or two about investing along the way.

Though all investments come with risk, when you start as early as possible and with whatever money you can, you’ll have more time on your side to potentially grow your portfolio. Using your tax refund to invest in your future could be a wise choice no matter how much it is. As we mentioned, even just $1 is enough.

2. Invest in real estate

...

Keep reading on Quick and Dirty Tips