It is once again that time of year when everyone’s tax returns start coming in. With that extra chunk of cash comes the question of what to do with the money. Whether you spend it on something fun or use it to pay back debt, make sure you spend smart! Here are some great ways to spend your personal or business tax return:
For your personal return:
1. Pay back credit card debt. Because credit card debt has high interest, it is best to pay it back as quick as you can. A few thousand extra dollars can be enough to get ahead on your payments and you’ll save a bunch in the long run!
2. Stick the money in a rainy day fund. Imagine your furnace goes out, or the car needs a repair. Would you be able to get it fixed without hurting your bottom line? It is good to plan for unforeseen events that may require a significant amount of money.
3. Contribute more to your retirement fund. Stick the money away for the future. It will gain a bunch with interest, and you’ll be glad later in life!
4. Prepay for a vacation. Put the money away to fund a vacation later in the year so you don’t have to use credit cards or blow your paycheck to pay for the trip.
5. Spend it! Tax returns are intended to get people to spend money and stimulate the economy. Use this to justify buying that fancy new television you’ve been eyeing!
For your business return:
1. Save it. Stick the money away to be used in case of emergency. It never hurts to have some extra cash on hand in case something goes wrong in the future.
2. Beef up your website. The web is where it’s at now. Keeping an up-to-date, attractive, and functional website can make a difference for attracting and keeping customers.
3. Invest in your location. Get some new office furniture, new decorating, or a fresh coat of paint. Having an attractive place of business can make a difference for keeping customers around.
4. Pay off debt. If your business has any small debts, this is a great chance to put money toward paying it off.
5. Do something nice for your employees. Get a fancy coffee machine or invest in some team bonding activities. It will boost office morale and your employees will love you for it.