Getting a good refund back from your taxes can really brighten your day, week, month or maybe even your year. The question of what to do with it can lead to a lot of different options, and the size of the actual refund will determine how many options you have at your disposal. Before you decide on taking a trip to Vegas, here are a few options.
Put it into Savings
Maybe not the most exciting option, but definitely the most practical, saving your tax return (or a majority of it) can be the most responsible thing you can do with it; especially if you have big plans for the future.
Take a Vacation
You’ve worked hard for the money you got back, so it stands to reason that taking a little rest and relaxation time for yourself could be a very attractive option. Taking the time to go on a trip can rejuvenate you for the next year until your next refund comes in.
Buy a Car
New and used cars are a very popular choice for spending a tax refund. If your car is barely cutting the mustard these days, maybe it’s time to do yourself a favor and put a down payment on something that is both practical and a bit of a luxury item. It doesn’t have to be an expensive car, but just one that you can rely on. Having a good car to call your own can make a big difference in your life.
Invest it
A lot of companies offer stock options as well as great RRSP or TFSA options, so if you’re a savvy business-type, this may be an intriguing option. The old saying goes that you should “make your money work for you”, and this option does just that. Be careful on how you invest; like gambling, there’s no guarantee you’ll see that money again.
Spoil Yourself
If your refund is really good, treating yourself to a little something is not a bad thing. If you’ve got your eye on a new big screen television or a brand new iPad, there’s no reason that your refund check couldn’t go to that.
No matter what you decide to spend your money on, if you choose to spend it at all, the important thing is that you are happy with the decision you made. After all, you won’t be seeing one for a full year.
AndrewWBradley.ca Financial Services