Did you know that last year, Americans’ received an average refund amount of over $2800? While obviously that number varies from each individual, knowing that your refund check could be almost $3000 can leave you itching to make some purchases. Splurging on a vacation or a fancy new piece of tech is always one way to spend your refund, but if you’re looking to invest a little more wisely this year, we’ve come up with three great ways you can get back as much as you give this refund season.
Pay Off High Interest Debt.
It certainly isn’t the most glamorous way to spend your tax refund, but paying off debt could certainly be the most profitable in the long run. Whether your refund check covers your whole balance, or just eliminates a healthy chunk, you’ll be spending less on interest, which means more money in your pocket all year long. Wouldn’t it be nice to have extra cash all year, instead of just at tax time?
Invest in Your Home.
Even if you don’t plan on moving any time soon, investing some money into your home can be huge benefit to you. Put in a new backsplash in the kitchen, replace some of the old sconces in the bathroom, or even redo the roof; anything that can increase your home’s value. If you do plan to sell the house, these small details can really increase your home’s sell-ability; if you don’t move, you’ve increased your home’s value, meaning you have a more established asset in your portfolio.
Give to a Worthy Charity.
Some people might treat helping worthy causes as a no-brainer, but for some of us, when things are tight, giving to charity isn’t exactly our first priority. When you do find yourself with extra income, consider giving back to your community. Plus, you’ll be able to claim the tax deduction when you file your taxes next year. (If you aren’t sure what charity to donate to, check out this great site that can help you search by keywords and state!)
What do you think is the best way to spend a tax refund? Let us know in the comments below!