It’s always tempting to splurge when you receive a tax refund. But with a little planning, that money can go a lot further. Here are five ideas from Rani Jarkas—a financial services executive with over 20 years of international banking experience—on what to do with your tax refund:
- Invest in yourself.
Use your tax refund to invest in your future by taking a course or attending a seminar on something that interests you. Not only will you walk away with new skills, but you’ll also feel empowered to take charge of your finances.
- Start an emergency fund.
An emergency fund is a must-have for anyone who wants to be prepared for life’s unexpected expenses. Use your tax refund to start one or add to your existing fund. The pandemic has taught us that it’s always better to be safe than sorry. So, make sure you have at least three to six months of living expenses set aside in case of an emergency.
- Pay down debt.
If you have high-interest debt, use your tax refund to make a dent in the balance. Not only will you save on interest payments—you’ll also feel lighter knowing that your debt is under control.
- Add to your retirement plant.
Even if retirement feels like it’s far into the future, it will come sooner than you think. Use your tax refund to add to your retirement savings so you can enjoy a comfortable retirement.
- Invest in a side hustle.
Do you have a hobby you’d like to turn into a money-making venture? Use your tax refund to invest in a side hustle and start earning some extra cash. From starting a blog to launching an online store, you have endless opportunities to make money from your passion.
Keep these tips from Rani Jarkas in mind, and you’ll be well on your way to making the most of your tax refund.