That time of year is here again.
Tax refund season!
Your W2’s have come in the mail and you are off to file your taxes and get that refund money.
You have been eyeing that new shirt, that new car, that vacation, those new shoes for MONTHS! Soon a deposit will hit your bank account and you will finally be able to afford it. Ready to shop till we drop… right?
WRONG!!! For a long time I have seen friends, family members, and colleagues spend their tax refunds on luxury items from nice new material items to vacations. The money comes…and then the money goes. Then tax season is over. May rolls around and everyone is back to living paycheck to paycheck wishing for some disposable income.
Well friends, that dreadful cycle can end this year!
This year you need to invest that tax refund so that it will make money for you throughout the year.
“But Georgie, I don’t know anything about investing money”
That’s totally fine because with modern day technology everything is a Google search or a Youtube video away. In this post, I will go over 5 different ways you can invest your tax refund so that in a few months from now your $2,000 investment can grow to $4,000 or more!
1. START AN ONLINE BUSINESS
There are various online businesses you can start from a clothing store to a drop-shipping service. Starting a business is one of the more risky investment options because you cannot just start the business and expect it to run itself ( unless you are in a position to hire someone to run it ). That initial investment is getting your business set up, plus adding some automation features will give you the leverage you need to generate passive income. For example with a drop-shipping business, once you set up all the automation, people can order products and it gets shipped directly to their house without you ever having to touch any products. But the key is putting in the hours of work to set up those systems.
You can attend the GSD University to see our online classes that goes over setting up a business.
2. INVEST USING ROBINHOOD
Robinhood is an app where you can purchase stocks without additional charges. You just buy the stock for their actual price. This is a great app used by both beginners and experts who want to invest. What stocks should you invest it? Think about what companies are currently growing in demand, what companies do you work with? what companies do you purchase from? You can also see stock trends and growth rates on the app. It even shows you how much a specific companies stock has grown over the years. Start out slow and watch your stocks grow. Sign up here http://share.robinhood.com/georgig
Related Article: Combatting Financial Anxiety Part 1
3. INVEST USING ACORNS
Acorns is similar to Robinhood where you invest your money into stocks but the difference with Acorns is that it selects the investments for you. The way Acorns works is that they round up your purchases to the next dollar and then invest the rounded up excess. For example, you purchase a cup of coffee for $1.21. Acorns will then round up to $2 and invest the $0.79 into your account. You can also invest lump sums into Acorns at once ( this is what you would do with the refund) then slowly but surely that money will start compounding and growing beyond your original investment amount.
Sign up here https://acorns.com/invite/HU63EE
Remember investments take time! Let the money sit and grow
4.TAKE A SKILL BUILDING OR CERTIFICATION COURSE
Investing your refund in some form of educational program will not only grow your value and open more job opportunities for you, but it will also allow you to command more pay in your work.
5. JOIN A MICRO-LOAN SERVICE
There are platforms out there that allow you to loan money to others and earn interest when they repay you that loan. Essentially you become the bank. Using one of these systems can be a lot more reliable than loaning a friend the money because you can’t guarantee it will be paid back, by when, and most likely won’t be getting any interest on top of the loan. Here are 6 thriving Peer to Peer microloan platforms.
6. [BONUS] DEBT CONSOLIDATION
The first five options focused on what to do to spend your money to make more money but what if you are in debt. As most of us didn’t learn about credit until we ruined it, it’s important to build up credit and get out of debt so that when you invest your money a debt collector can’t just come and take it all away. When your debt spirals out of control and gets too hard to handle, you want to consolidate that debt so you can pay it off to one collector instead of multiple. This way you can just pay one person, once a month and rebuild your credit. Here is a full review of the debt consolidation process from Bankrate, they explain what debt consolidation is, how it works and resources to help the process
IN CONCLUSION
Over the years my tax refund has invested into things such as:
- Driving lessons so I could get my drivers license and get work opportunities that required a drivers license
- Starting my businesses which have earned tens of thousands
- Investing in stocks through Robinhood and Acorns
- Participating in Peer to Peer loan programs that allowed me to save even more and get even more back in the long run
Now that you have the knowledge and FIVE different ways to spend your tax refund does that shopping spree still make sense? What is one shopping spree today and then none for the next 12 month vs investing that money and 2 years from now being able to go on shopping sprees whenever you like without having to penny pinch?
“But Georgie, I don’t think I can do any of the options above”
Well hello my friend as I mentioned in the beginning, more results are only a Google search or Youtube video away.
Don’t have the time for all that but still confused about what your investment plan should be? No problem.
Let’s chat schedule a free 15-minute consultation with me and let’s help you create a plan. I can even connect you with some financial planners in my circle.
I want you to live a life with more financial freedom and that starts now, don’t spend your tax refund… Invest it!
by Georgie-Ann Geton © All rights reserved