What You Can Do With
Your Tax Refund Check
You might be asking yourself what you should do with your tax refund check once it comes in. We have a few suggestions that can help you get started building generational wealth for your family. Let’s take a look at how you can use today to plan for tomorrow.
Down Payment on a House
Are you looking to buy a house one day? Saving your tax refund money is an excellent idea and will help you toward achieving your goal. Down payments are not cheap, however, you might be able to find a program in your area that helps Black and brown families have an easier time purchasing a home. No matter what your tax refund might be, saving to buy a home is still a good idea. It might take you a few years to get to a place where you can afford it, but waiting a few years is worth owning a home in the end. The key to any long-term goal is patience, and if you hold that key, it won’t be long before you’ll be holding the keys to your own home.
Another way to save your tax refund is to invest it. Here at Financial Joy School, we are staunch advocates of investing your money, and there’s nothing holding you back from investing your tax return. If you’re not sure what to invest in or where to even start, we have a few suggestions.
Follow the links to read our blogs on these subjects, as we have written extensively on them. Investing is like planting seeds that grow over time to become a vast harvest. Your best bet with investing is to choose funds, bonds, and stocks that are strong during a recession and will give you the biggest returns.
Some people even invest to save for that down payment on a house. Why? Because in a few years’ time, you’ll have even more money than what you put into your stocks, which helps you purchase your home a little sooner.
Plan for Retirement
If you have a retirement account, such as a traditional or Roth IRA, consider investing your tax return for retirement. These accounts only allow you to invest up to $6000 per year if you’re under 50 or $7000 per year if you’re over 50, but if you choose the right mutual funds, you’ll watch your retirement funds accumulate as time goes on.
Saving for a home and investing in the stock market are the two fastest ways to build generational wealth and bless your family out of poverty. It’s tempting to take a few thousand dollars and have a little fun, such as go on vacation or buy the kids something nice, but consider your long-term goals and remember—the key is patience. By saving and investing today, you’ll give your family a bright and wealthy future tomorrow.
To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.