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10 Smart Things You Can Do With Your Tax Refund

10 Smart Things You Can Do With Your Tax Refund

It’s that time of the year again and you’ve been pretty diligent with your taxes, so you find yourself with an extra $2000 on your hands and you start wondering what to spend it all on. People often get confused when they get a relatively large sum of money and end up spending a good chunk of it without really knowing where the money went.  Well, spending your tax refund might be pretty easy, but it if you want to use this money wisely I suggest you take a look at some of options listed below.

Figure standing on money

    1. Pay off school loans

    Student loans can affect your life plans and even your partner’s plans for that matter. These loans can never be discharged, even in bankruptcy, and if you delay paying, your tax refunds can be seized, wages garnished and credit ruined.  Of all the debt you may have to pay, student loans should take top priority.  For young married couples, the problem can be doubled if both have student loans. Even if you are currently single you’ll want to pay off your student loans as quickly as possible, so you can move on with your life and worry about more important things.

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    2. Enhance your child’s college fund

    It’s never too early to start thinking about the future and when it comes to giving your child the best education you can afford, it’s good to start planning well in advance. A thousand dollars can be a nice starting point and help you get the ball rolling, so to speak. Check out your state’s 529 plans.

    3. Put it in your savings account

    Putting money into a savings account allows you to have peace of mind. When faced with potential problems and emergencies you will feel a lot less stressed out if you know that there are a couple of thousand dollars sitting on your account. Major home or car repairs, injuries, or an infestation in your home can come at the worst of times ,and having that little extra money saved for rainy days will reduce your stress immensely.

    4. Focus on big ticket buys

    Instead of frittering your tax refund away on a bunch of insignificant things that will be gone or unwanted in a short time, you can focus on investing in some big items that will last,  like a new fridge, a big screen TV, a new car or even a gaming console for your kid (or yourself). These purchases are good investments since you use them every day and they will last a long time.

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    5. Take a bite out of your credit card debt

    When it comes to debt, an extra $1000-$2000 can really help you move forward and start that debt-destroying tactic you’ve been trying to implement for a while. You’ve probably already discovered that paying just the minimum every month doesn’t reduce your debt by much, if any. Paying off a smaller debt first and then moving on to the next one until everything is paid off is a sound tactic, but with this sudden boost to your funds, you can focus on high-interest debt first and take a huge chunk out of it, saving yourself hundreds or even thousands of dollars of interest in the long term.

    6. Get a better cell phone

    Technology is getting better by the day, it seems,  and staying stuck with an old phone and a mediocre plan is far from ideal. If you use your phone a lot, and most people do, a tax refund can be a great opportunity for you to upgrade to a brand new cell phone and get a cell phone plan that fits your needs. If this means that you can get rid of a land-line phone, or keeps you from needing a laptop, it can save you money in the long run.

    7. Do some house maintenanc

    There are always a lot of things that need fixing around the house, things that we usually put off because we don’t have the time and money to deal with them. A tax refund is the perfect incentive to get some of the work done. You can repaint the house, fix the plumbing, buy some new furniture, get a couple of new lamps for the living room, get a new carpet, remodel your bathroom, improve security with a sturdy front door and new windows, invest in some landscaping, buy more energy-efficient appliances, etc. Your house is probably your largest investment, and taking care of it pays off.

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    8. Invest in acquiring new skills

    Having a range of useful skills doesn’t just look good on your resume – it can help improve the quality of your life or even help you earn a bit of money on the side. If you’ve always wanted to play an instrument or sing you can join a class or go to a vocal coach. Maybe you want to invest in a defensive driving course that will greatly improve your driving skills and lower your car insurance costs.  You could take a cooking course or buy a decent camera and start learning about photography. These skills can increase your enjoyment of life, and might also increase your income.

    9. Invest in your health

    Let’s face it, most of us need to take a good hard look at ourselves and make a few changes when it comes to our health. With some extra money on your hands you can afford to,join a gym, consult with a nutritionist,  and hire a personal trainer.  Maybe you’d like to combine acquiring new skills and healthy exercise by joining a dance or martial arts class. Investing in your health also means fixing your teeth, getting a checkup at the doctor’s office and stocking up on some supplements like D3 and fish oil.

    10. Allow yourself some luxury

    Sometimes you just have to give in to urges and pamper yourself a little, especially when you have a good opportunity to do so. You can use your tax refund to go on a little romantic trip with your partner, wine and dine at some higher-class restaurants for a while, take the kids to Disneyland or anything else that allows you to live life to the fullest and recharge your batteries. This way you are investing in your mental health and strengthening the bond between you and your loved ones. The important thing is to use only a portion of your tax refund on indulgence and dedicate the rest to things that will improve your life long-term.  Finding this balance is the key to enjoying your windfall.

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    People are often tempted to go wild and start spending their tax refund willy-nilly, losing hundreds of dollars on insignificant items bought on impulse. Try to fight this temptation and look into some of the smart options listed above that will help you put that extra money to good use.

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    Last Updated on August 15, 2018

    30 Fun Things You Can Do This Summer Without Spending Much

    30 Fun Things You Can Do This Summer Without Spending Much

    Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

    Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

    Video Summary

    1. Visit a strawberry festival

    Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

    2. Have a picnic

    Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

    3. Camp in your back yard

      The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

      4. Take long walks

      Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

      5. Break a world record

      Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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      6. Go on a bike ride

      The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

      7. Join a gym class

        The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

        8. Find a new hobby

        The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

        9. Join a sports team

        Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

        10. Make a slip ‘n slide

          Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

          11. Make a treasure hunt for your kids

          Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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          12. Visit a free festival

          Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

          13. Visit the zoo

            Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

            14. Take a road trip

            Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

            15. Play ultimate frisbee in the park

              Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

              16. Make your own ice cream

              Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

              17. Invite your neighbors over for a BBQ

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                When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

                18. Get a summer job

                For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

                19. Attend a charity event

                Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

                20. Visit a national park

                National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

                21. Visit your local comedy club

                  Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                  22. Make your own hammock

                    Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                    23. Read in your new hammock

                    Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                    24. Watch a movie outside

                    Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                    25. Take a hike

                      Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                      26. Learn how to fly a kite

                      As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                      27. Work out at the park

                      American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                      28. Take your dog to the beach

                        One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                        29. Make a summer smoothie

                        Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                        30. Attend a free yoga session at the beach

                        No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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