Do you dread filing your taxes as much as I do?
Most of all I dread the amount of time it will take me to get the necessary paperwork ready to meet with my accountant.
With it being the first tax filing since the new tax cuts, we won’t know exactly how much it will impact our returns until the season is almost over.
Hopefully we end up with more money in our pockets that we did last year.
It is estimated that the average tax refund amount nationally will be close to $3,000 – which is up a little bit from last year.
Once you get over the initial excitement of getting money back, you are then faced with the decision of what you will do with the money.
For many of us I am sure there are bills, fun vacations, home repairs, or a list of other things that have already tried to claim this money.
Before you go completely down that road, I would like to propose an alternative to spending it.
What Should I do with My Tax Refund?
A few days ago I posted a blog article where we explore 5 areas you should consider investing your tax return.
Even if it’s only a small portion that you invest this year, it can still have a significant impact – especially if you continue to do it in the coming years.
In that blog post I share a text conversation I had with a good friend of mine. We explore the power of investing even $500 to $1,000 of his return into an Individual Retirement Account (IRA).
Whatever your plans are with this money, I hope you’ll consider the impact of investing it.
If you spend your return on “stuff,” chances are in 30 years you won’t even remember where it went.
If you instead invest that money into one of the 5 areas we talked about in this post, you’ll have something to show for it.
Simple steps like this can completely change your financial future.
I hope you enjoy.