Making a list of the things we want to buy with the money from our tax refund is esay, but it is much smarter to think of ways to make that money pay off. Investing in ourselves is an option to consider.
Paying taxes is often a chore that isn't overly exciting, but when the tax refund check arrives it can bring some joy. Spending this money is tempting, but here are three ways in which this money can bring you closer to your financial goals by investing in yourself.
1. Invest in your business or side hustle
If you are starting your own business or another side hustle, investing your tax refund in your project is a great idea. Although the costs to start up a business or side hustle may not involve large expenses, you may need to spend money on a website, products or advertising.
These may not be very expensive things and your tax refund check may be able to pay for all you need to you get started.
2. Expand your knowledge
Even though investing in your business or side hustle could be considered an investment in yourself, this is not what I’m talking about.
Your career or any business or side hustle you start, depend on your knowledge and expertise. Investing in courses, books, conferences, seminars or postgraduate studies are always a good idea. You can use your tax refund check for further education and your ROI can be enormous.
3. Invest in your HSA
Your success at anything depends on your health, so taking care of it is essential. If you have a HSA or are looking to open one, you may want to invest your tax refund money there. This is a way to ensure you are covered for future medical expenses, but is also a way of putting your money to work.
HSA account have some major tax benefits and this is how it works: Pre-tax money goes in (or your own contribution that is deductible), you owe no taxes on growth, and you owe no taxes on withdrawal for medical expenses. So not only do you take care of your future health but can get more tax benefits in future years too.