April 15th. To some people it means d-day. For others it means a big windfall. What exactly is so special about April 15th? It’s the deadline for filing your taxes. It means d-day for some people because they wind up owing Uncle Sam money. Other people typically get a big windfall in the form of a tax refund. If you’re one of those people then let’s talk about what you should do with that money. Don’t go around talking about how you’re gonna “make it rain.” Instead use that money to prepare for a rainy day. Here are a few things that you can do with your tax refund that can help set you up for a stable financial future.
Invest in a business.
Have you always wanted to open up your own business, but never had the funds? Instead of going out and getting your nails done, put the money you got from your tax refund into a business. You could start a consulting business or teach a class about something you have expert knowledge in. Having cute nails may make you feel good, but you can’t feed anyone with a set of fingernails.
Buy some stock
If you’ve been eyeing a certain stock, now is a great time to buy it. You have money that you didn’t expect to have anyways so why not invest it in something that can mature? If you are new to picking stocks, there are plenty of articles that can help you get on track to investing in stocks.
Start a rainy day fund
Most financial experts call this an emergency fund. I prefer to call it a rainy day fund because if you say emergency, one will happen. Ideally you should have at least six month’s worth of expenses in this fund. However you can get it started with whatever you get from your tax refund.
It is always fun to get extra money in a lump sum. Instead of doing something frivolous with your refund, do something fiscally responsible. This will get you on the path to a stable financial future.