Many of us dread tax season each year, but it provides an opportunity to assess our finances and potentially receive a tax refund. The average tax refund this year is over $3,200, offering a financial boost to many households.
If you have some extra money from your tax return, here are seven ways successful women maximize their tax refunds:
1. Pay down debt
Use your tax refund to pay off high-interest debts such as credit card balances, personal loans, car loans, or student loans. This can help you save on interest and improve your credit score.
2. Build up your emergency savings fund
Boost your emergency savings fund with your tax refund to have a financial safety net for unexpected expenses. Consider aiming for 6-9 months’ worth of living expenses.
3. Begin investing
Start investing with your tax refund, whether it’s through increasing your 401(k) contributions or exploring other investment opportunities. Educate yourself on different investment strategies.
4. Start your side hustle
Invest in your side hustle by using your tax refund to fund resources, training, or equipment to grow your additional streams of income.
5. Donate to a charity or cause
Support a cause or charity that is important to you by donating a portion of your tax refund. Take advantage of any gift-matching programs offered by your company.
6. Improve your home
Use your tax refund to make home improvements that can increase your home’s value. Consider energy-efficient upgrades that may qualify for tax credits.
7. Treat yourself to something special
Indulge in self-care or a special treat with part of your tax refund. Take the opportunity to reward yourself for your hard work and dedication.
