Tax Refund? 6 Fantastic Ways to Improve Your Life!
It’s over. Your tax battle has ended. With an average tax refund for a Coloradan at about $2,500, now it’s time to have a blast! And of course, we have suggestions to help you do that.
Eat Your Vegetables!
Wait a minute. How are these financially responsible options, “Having a blast?” Well, you realize this is a credit union’s blog, right? Seeing our members improve their financial situation is very exciting for us. Sometimes the most straightforward choice is simply the best one.
1. Build Your Safety Net
We’ve talked before about how you need an emergency fund. Here is your chance to get a jump start saving for unexpected costs. Avoiding debt and preparing for future problems is like removing future anti-fun.
2. Removing Debt Shackles
If you owe on loans or credit cards, you can use for refund on decreasing your debt-to-income (DTI). Even if you are looking at not paying it off for a long time, that early boost can save you money in interest down the line. Be aware that early repayment penalties do exist on some loans. Be sure to check with your current lender for any penalties.
3. Life Goals
Tuck that money away for a future life milestone. This could be a down payment on a house, college, children’s daycare (which can rival the cost of college), or retirement. Don’t get overwhelmed by all the things that you’re “supposed” to be saving for. Don’t worry about hitting these milestones when you’re “supposed to.” But your tax return can be the first step towards progress with a goal that is important to you. Whatever your goal might be, we can help you with your savings.*
Ok, but what if you want to actually spend some of that sweet moolah. All work and no play, right? Don’t worry. We’ve got you covered below.
4. Mad Skills
Take a class in something cool. If it’s a skill that could help your career, even better. A passion hobby could be an investment as well. Interested in making an obscure form of Japanese porcelain? That could lead to a nice side hustle. At the very least, do something that will improve your physical or mental health.
5. Find Adventure
Visit a place you’ve never been to, watch a concert, or go see a play. While happiness over new toys will fade over time, fun experiences keep you happy longer. The world is full of events and places waiting for you to find.
6. Buy Something!
This is the one you’ve been waiting for, right? Treat. Yo. Self. Keep in mind that shiny new things don’t stay shiny. If it’s something you’ll end up replacing with next year’s refund, break the cycle now. There are plenty of life improving thingsthat you never thought about.
*Accounts are federally insured by the NCUA for up to $250,000.