How to spend your tax return

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The grass is sneaking out from beneath the blankets of snow. The world bursts with colour and vibrancy for the first time in what feels like a decade. The air smells like mud and new beginnings. In other words, it’s spring, finally! And that also means it’s tax time.

For some that means it’s time to part ways with some of your hard-earned cash, for others this is a time to rejoice because that means it’s also tax return season! Whether that return comes with one or many zeros, think of it as a blessing—it’s basically free money (ok, not really, but you know what we mean)—and you should use it for powers of financial good and not be tempted to just blow it all on something fun. Unless that’s what you want to do. And in that case, you do you.

But if you are trying to be a little more financially responsible, we have a few ideas on how you can spend that money in a way that won’t make you cringe in a few months’ time. 

  1. Save for retirement: Everybody has to start somewhere and everyone moves at their own pace. Whether you’ve been savings for years or need to get started, there is a ton of value in putting money away for future you. 
  2. Buy some art: Another idea might be to spend that tax return on something that will increase in value over time, like a piece of art. Not only would a new piece of art improve your mental health by adding a burst of colour to your life, you never know if you’ve invested in the next Picasso. Or Lewis. 
  3. Invest in your home: You could also use your return to invest in something else that could grow in value: Your home. If possible, use your return towards a down payment on your first home. Or, if you already own your own property, your return could go towards a project that might add value to your existing property, like that new deck or shower you’ve been thinking about.
  4. Buy something you need: Another idea is to use your tax return is to buy a big ticket item you need, but have been putting off. This could be something like a suit, high quality LBD, or anything else that you maybe don’t need all the time, but can come in handy over time and make you feel like you’re doing some major. #adulting 
  5. Donate to a charity: Maybe you’d rather invest in your karma. After all, it never hurts to help out those in need. 

Of course, there’s always the standard option of paying off your existing debt too. While it might not be as fun as investing in a painting or getting some new duds, paying off your existing debt is never a bad idea. 

Looking for more financial advice? Get in touch with your local credit union today.