fbpx

7 Ways to Invest Your Tax Return


by Don Smith

All products and services featured on this site are independently selected by our authors and editors. If you buy something through links on our site, we may earn an affiliate commission.

Many are thinking about the fun toys they'll get with their tax returns in the first few months of each year. That's one way to live life, and I'm the first to admit that it's fun to blow money, but it's also an excellent way to get stuck living paycheck to paycheck. 

If you want to break that cycle, you need to think about how you can invest any extra cash you get. Here are some ideas for how to use your return so that it brings you even more money or happiness in the future.

Ideas for Investing Your Tax Return

  • Debt: If you have any high-interest debt, get rid of it. With average credit card rates of 19%, it's a guaranteed return on your investment.
  • Coaching: I'm starting to get a regular stream of people signing up for private coaching, saying they will begin as soon as they get their tax return. I'm biased, but having helped many significantly increase their income or scale their business, I think it's a fantastic investment.
  • Education: The right education or certifications can also dramatically increase your earning potential producing tens of thousands of dollars in additional revenue every year.
  • Stocks: The stock market is usually the first thing people think of when investing money. It's one of the few genuinely passive investments, and putting extra money into your investment accounts is usually a good move any time you can. The only downside is that it is one of the weaker investments with a long term average annual return of only 7% compared to investments in increasing your income which may produce returns of 1000% or more as outlined in “The Insane Math Behind Investing in Yourself.”
  • Rental Property: Rental properties continue to be a good investment in many areas and have made many people millionaires over the years.
  • Private Business: A full forty-seven percent of millionaires are business owners, according to an article in the Economist. Many of my clients are investing in their business with their tax returns.
  • Vacation: Not all returns can be measured in dollars and cents. Sometimes taking time out with your spouse or family is a wise investment and one that will be remembered much longer than any toy you can buy. If you are happy with your current financial health and work-life balance, seriously consider this investment.

Will you invest your return this year in things that will bring you more money or happiness in the future? Or will you waste it on something you will forget in a few weeks?

About the Author 

Don Smith

Happily married with five kids, Smith owns a technology company, is the founder of this site, has served on the board of directors for multiple companies, and loves playing soccer, hiking, and mentoring.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Coffee only takes you so far. Any drink or supplement works outside-in. Synthetic energy boosters create a quick, intense burst but lag

Read More
3 Natural Energy Boosters

This morning I found out that I weigh the same as my personal trainer. We're roughly the same height as well, and

Read More
Numbers Don’t Lie but They Rarely Tell the Full Story

Is passion a lie? We've all heard quotes like “Do what you love and you'll never work another day in your life.”

Read More
Is Passion a Lie?

Every human being is like a branch sprouting from a massive tree. Every race appears to be a different cluster of branches

Read More
Stop Cutting Limbs from Your Tree

The practice of looking within in order to get rid of all that is bothering us and know ourselves better is called

Read More
The Importance of Self Introspection

“An ant has no quarrel with a boot.” ~ Loki, Avengers Observe the news. But not for too long. Observe politics. But

Read More
Do You See Yourself as an Unlimited Creator or Mindless Insect?

I went from pier guard to pro blogger and island hopper by following some rules and breaking other rules. According to many

Read More
The Thing About Rules

If I get rich, doesn't that make someone else poor? That's what society tells us, right? Maybe that's true.  But maybe not!

Read More
Is someone else getting poorer when I make money?

A year from now, will you be WISHING that you started today?   Or will you be GLAD that you started today? What

Read More
Start Today: What 1 Percent Change Looks Like

My mother in law passed away last night after a prolonged illness.  My uncle passed away a few weeks ago after an

Read More
Hug Change Because Flux Is the Only Constant

Are you an expert in relationships, health, finances, business, or other areas of personal development? We are looking for guest bloggers to

Read More
Calling for Guest Authors in the Personal Development Space

I scanned a few “life problem” type posts on Google. Career pressure came up as one such problem. People fear losing jobs.

Read More
1 Way to Address Career Pressure

SUBSCRIBE

Get new articles and course discounts from leading providers every Friday in your inbox with your free subscription!

>