5 Smart Ways to Spend Your Tax Refund

Hopefully this year’s tax season results in a nice refund check.

If that’s the case, you want to use your tax refund wisely.

In other words, the money is probably burning a hole in your pocket, giving you the urge to head to the mall, your favorite online shopping sites, and/or your favorite restaurant.

Before you succumb to that urge, we thought we’d assemble what we think are the top five smart things to do with your tax refund.

How to Spend Your Tax Refund Wisely

1. Pay Down High Interest Debt

Have you ever calculated the interest you pay on a large purchase made using various forms of credit? If so, you probably noticed that if you only make the minimum payment each month, by the time you pay off the item, you will have essentially bought two of whatever it was you purchased.

As such, paying down (or better yet paying off) high interest debt will literally save you hundreds or even thousands of dollars in the long run.

An important thing to consider, however, is the interest rate. If it’s high, chances are you’re best off paying it down. If it’s low, you should weigh what you’re paying in interest against what you potentially could be making if you were to invest the money instead. Math will definitely be your friend in finding the right answer.

2. Create an Emergency Fund

There’s nothing like an unexpected medical bill, car repair, or appliance replacement to wipe out your checking account, drive up your credit card debt, and send your finances into a tailspin.

To help prevent and unplanned expense from throwing your life off track, consider using your tax refund to start an emergency fund.

For sure, it won’t make that root canal more pleasant. However, being able to pay cash for the procedure and avoid credit card interest can certainly make it less painful.  

3. Treat Yourself

Have a European trip you’ve been dreaming about since you took French in high school? Been itching to take up the guitar? Tired of looking at the 1970s décor in your kitchen?

A tax refund, especially a decent-sized one, can certainly go a long way toward realizing your dream. Granted, a snowboard might not be as “responsible” of an investment as a mutual fund. But if hitting the slopes in Colorado makes you feel happy and fulfilled, it’s money well spent.

4. Donate to a Worthy Cause

If you’re fortunate enough to have your financial portfolio built up, it may be a good time to help people who are not so lucky.

An added benefit is that many charitable donations are tax deductible, helping to ensure a sizeable refund for you next spring.

5. Invest in Your Health, Productivity, and Overall Wellbeing

There’s no smarter money than money you invest in yourself. Whether investing in yourself means a personal trainer, yoga classes, a meditation retreat, massage therapy, or a bicycle you can ride to work every day, it has the potential to pay dividends in ways you might not even consider.

If investing in yourself is the route you choose to take, we suggest you consider a standing desk or standing desk converter in your investment plan. People all around the country agree that they’re great for helping you stay productive, active, engaged, and ultimately more fulfilled.

Standing Desks: A Smart Way to Spend your Tax Refund
Studies have shown that standing desks can help enhance energy and focus, both of which are shown to increase productivity. Stand Up Desk Store offers a full range of full-sized standing desks, as well as standing desk converters that allow you to enjoy standing desk benefits without replacing the desk you already own.

We hope you found these tax refund investment ideas helpful! Happy Tax Season!