Nobody truly enjoys preparing taxes, but tax refunds are a different story. Once you get your refund direct deposited onto your reloadable debit card, you can use the cash for whatever you want—whether it’s a fun indulgence or a responsible financial move. Consider choosing one of the following seven ways to spend your tax refund this year.
1. Take a vacation
You worked hard last year—why not take a quick break now using your tax refund? Whether it’s a weekend holiday or a two-week extravaganza, you’ll thank yourself for releasing some of that stress and getting away from the day-to-day schedule for a while.
If you choose to get your tax refund on a reloadable debit card, you can take the card with you anywhere in the U.S. and use it while on your trip. Plus, since you’ll get your refund faster than you would if you were waiting for a paper check, you can take advantage of any deals that might catch your eye.
2. Pay off debt
While it’s not as fun as a vacation, paying off debt can help you feel spiritually and emotionally lighter. Without a large debt hanging over your head, you can focus on building an emergency fund or saving up for a treat down the road.
Student loans, credit card debt, and other financial liabilities might need your attention. Do your best to pay them off ASAP as it will help reduce the total interest you pay.
3. Add to your tech
If you love to snag the latest gadgets and devices, your tax refund offers the perfect opportunity to indulge. Whether it’s a drone or a new phone, your tax refund can help add to your tech and give you a new toy to play with.
Of course, not everyone rushes out to buy the latest technology. You could also use your tax refund for another hobby, whether it’s a new yoga mat or DIY tools for home improvement projects.
4. Buy a car
Your tax refund probably won’t cover the cost of a new car entirely, but it might put a sizable dent in a down payment. Driving an older vehicle that could break down at any moment puts you at both physical and financial risk. Making sure you own a reliable car will leave you safer and more comfortable.
Once your refund hits your reloadable debit card, you can start shopping around for the best deals. Get multiple quotes for both car prices and interest rates so you don’t pay more than what’s absolutely necessary.
You could also replace something else that might wear out at any moment, such as an old refrigerator or that sputtering coffeemaker.
5. Keep some money for a rainy day
Everyone could benefit from having an emergency fund, and a reloadable debit card might be the perfect way for you to do it. Keep one card for emergency expenses and another for your regular spending, such as paying utility bills or shopping for groceries. This handy budgeting strategy will keep you from feeling tempted to touch your savings. There is a small monthly fee for using the Cash Back card (see Green Dot’s Simple Fees), so be sure to budget for that as well.
6. Enjoy a small shopping spree
Sometimes you just need a little retail therapy. People who have their tax refund direct deposited onto their reloadable debit card don’t have to wait for a paper check to arrive, stand in line at the bank, or wait for a check to clear. As soon as the refund hits their card, they can use the money to shop online or in-store everywhere Visa® Debit is accepted in the U.S., pay bills, or send money anywhere in the nation.
Plus, reloadable debit cards make it easy to shop online to your heart’s content. Whether it’s books, clothing, jewelry, or something else entirely, treat yourself to something you really want.
7. Make a donation
If you’re feeling generous (and can spare a little money), you might want to donate some of your tax refund to a worthy cause. You could also put it toward a fundraising effort for an upcoming marathon or other event that you’re participating in.
Giving your money to a charitable organization can make you feel good about your spending. Just make sure you cover your own needs first.
Tax refunds are fun to spend, and these seven suggestions can help you make the most of it. Don’t file your taxes until you have a reloadable debit card, though. You’ll need it for your direct deposit. Fortunately, it’s easy to get a card today (and check out their simple fees here)!