To Spend or to Save – A Tax Question

As we move closer to spring, we also edge closer to Tax Day. The deadline to file your 2017 tax return is Tuesday, April 17, 2018.

Although this year allows for two extra days from an ordinary tax year, there is no shame in filing now. As a credit union and a proponent of saving, we would suggest investing your return. We can show you the best ways to get the most in return. However, we’re going to buck tradition and talk about ways spending your tax refund makes sense. Of course, we always suggest you spend wisely after you get your ducks in a row – if you’re not in debt, have an emergency fund and have ample retirement in which you’re contributing consistently. If that’s you, indulge.

Experiences

Studies show experiences, rather than things, bring more joy and happiness to a person’s life. Go zip-lining, consider an art or sport class, or travel with friends or family. Building memories beats buying stuff.

Education

The business world is always evolving. Keep up-to-date or take classes in something you wish you would have way back when. It might help you stay employed, get a better job or simply be more marketable should you lose your current one.

Refurbishment

Replace those old floors you’ve hated for eight years or paint the house. Spending your tax refund to make long-needed repairs to your home might make you fall back in love with the place. Or, in a worst-case-scenario, it ups the property value when you sell.

Health

Flip for the personal trainer at the gym to get your body healthy. Or put money towards healthy ingredient-and-recipe meal kits to help build healthy eating habits.

Charity

Find a cause you care about and give a portion or all of your tax return. Whether it be journalism for democracy, saving animals, education or feeding the hungry, when you find a cause you can stand behind, gifting the money feels great.

Regardless, if you decide to spend your tax return or save every penny, do so in a mindful way. Make effective use of those hard-earned dollars because they are your hard-earned dollars and not a freebie from the government.

As a member, you can save $15 on TurboTax federal products. Visit TurboTax to take advantage of a perk of being a TCU member. If you decided not to take the path of the above written blog, may we suggest investing? Find out more about IRAs and how Travis can help you get set up.

TurboTax IRA center