Tax season is officially over and that extra dough is about to hit your account. When you see the equivalent of a month’s worth of pay magically appear, your first reaction is to spend it, right? But there are ways to be smart about that “extra” money. Here are a few things you should do with your tax refund instead of blowing it.
Transfer It to Savings
Put it all in the bank. Don’t touch it. Instead of treating it like extra money that won’t be missed if it goes missing, toss it in your savings account for a rainy day or whatever goal you’re currently saving toward. That feeling of watching your savings account grow is more fire than you think.
Well if you must spend it, don’t go overboard. If there’s a particular item you’ve been wanting to cop and it’s out of your usual budget, now is the time to make the move. But set aside a specific amount and stick to it (no more than 30%), using the rest for more important things. But in the meantime, buy that Gucci belt, king.
Diversify Your Portfolio
Invest in something. You’ve been hearing about cryptocurrency over the past few months and you’ve been wondering if it’s safe. Spoiler alert: It’s volatile AF and you should probably just stick to regular stocks. Look up some of your favorite companies and see if their stock is affordable and has some sort of steady growth.
Invest in Yourself
Got a passion project or side hustle you adore? Maybe now is the time to invest in yourself a bit, whether you need to cough up that dough to buy a new lens for your camera or finally create that LLC you’ve been meaning to start. Whatever it is, investing in yourself could help you get more money in the long run.