If you’re one of the many that receive a tax refund, here are fun and simple ways you can spend it that can help your overall financial picture and set your future up for success.
If you are new here, Hi! Hello, my name is Tillena. I am the owner and primary bookkeeper at Tillena Sigler’s Bookkeeping. We specialize in helping digital marketers and online coaches to refocus on their passions and their clients by managing their bookkeeping.
If you are a small business owner, these tips will apply to you as well! I hope this list gives you some inspiration on how to make the most of your tax refund while potentially putting yourself in a better financial position.
If you have questions, or want to share your unique strategy of utilizing your tax refund, let me know in the comments!
Also, be sure to stick around till the end if you are not receiving a tax refund this year… I will have some tips for you as well!
Here Are Five Fun & Simple Ways To Spend Your Tax Refund:
1. Pay Off Your Credit Card Debt
This is an easy opportunity to cut down credit card debt and dramatically reduce the compound interest.
2. Pay Off Some Of Your Student Loan.
If you have one, paying off a portion of your student loan will put you in a better position for this year.
3. Create An Emergency Fund.
Was the recent bill from your auto mechanic higher than expected? Worried about the weddings you have to attend this summer?
If you don’t have any savings but are debt-free, use this as a golden opportunity to start one.
4. Make An IRA Contribution.
Late on the retirement account game? Are you behind on contributions? Do you have an IRA?
Use this refund as a chance to open a retirement account and make a contribution.
5. Reinvest Your Refund Back Into Your Business.
Perhaps invest into hiring new personnel or a business coach or maybe even develop your money management team.
Investing in personnel is a necessary expense for any small business that wants to ensure its long-term growth.
Haven’t Filed Your Taxes Yet?
1. What Are You Waiting For?!
Girl, get it done. If you don’t have any obvious road bumps, and are just anxious about your process, I promise just getting this task done and off your to do list will make you feel so much better.
But, if you are feeling anxious about how you are currently preparing your taxes, whether you are doing it yourself or are using a tax preparer that you don’t mesh with, we encourage you to find another way.
Tax season does not have to be anxiety inducing.
When I was younger, I used to make myself physically ill by just the thought of filing my taxes. So, I completely understand the anxiety that can come when filing your taxes.
But, I was doing it myself through TurboTax. Ew.
Now, I hand my tax filing over to a HUMAN tax preparer, and I don’t feel anxious anymore.
2. Haven’t Done Your Bookkeeping All Year?
If the reason you are delaying filing your taxes is because you know your bookkeeping isn’t up to date and you aren’t sure what your numbers are… Well, we can help with that!
Schedule a free discovery call today and let’s finally get the unknown tax weight off your shoulders!
If you don’t know your numbers, you are one thousand percent missing out on deductions and playing a scary game with the IRS.
If you are guessing, or guesstimating, your numbers with no proof in way of financial statements and receipts, you are going to have a hard time if you get audited.
Highly, highly recommend getting this corrected sooner rather than later. Clean and catch up services can be a big investment that many business owners don’t expect. All that to say, getting your bookkeeping done once a year is NOT price effective.
3. If You Are DIY-ing Your Taxes
If you are DIY-ing your taxes this year, be sure to check out this free download, “12 Biggest Tax Write-Offs For Small Business”.
If you are missing one of these write-offs, you are missing out on deductions that could be saving your tax bill and therefore saving you money!
12 Biggest Tax Write-Offs For Small Business
Tax deductions are an essential way to minimize the amount of tax you have to pay, and good bookkeeping will ensure you get to keep those deductions if the IRS ever comes knocking.
4. Are You Worried You Won’t Be Able To Pay Your Tax Bill?
If you aren’t able to pay your tax bill because you either didn’t save for it or you didn’t make your quarterly payments, you are going to be ok!
But…
Get it done. File now.
The earlier you get this addressed and handled with the IRS the easier the situation will be. The IRS has payment plans available for this type of situation. But, if you wait until after April 15th, or your extension date, when your taxes are due… you will be doing yourself more harm than good. Please, get it done.
I hope you have enjoyed this article! Again, if you have any questions about getting your bookkeeping done, please send us a message. We are here to help you.
Tillena Sigler | Owner of Tillena Sigler’s Bookkeeping, LLC
We specialize in helping digital marketers and online coaches to refocus on their passions and their clients by managing their bookkeeping.
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