Tax Refunds How to Turn Money Into More Money (Investing Your Tax Return) Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Elle Martinez Published May 12, 2022 - [Updated Jun 7, 2024] 3 min read Reviewed by Jotika Teli, CPA Lena Hanna, CPA With tax refunds averaging over $3,000 in 2024, refund checks can have a significant impact on many Americans’ finances. If you’re looking for ways to maximize your refund, you’ve come to the right place. Everyone wants to make the most of their refund money, so here are five ways you can use your tax refund to add more money to your pocket! Table of Contents Pay Off DebtPut It in High-Interest SavingsStash Away Money in a Certificate of DepositInvest in YourselfInvest in the Market Pay Off Debt How will paying off debt make you money? High-interest debt, like credit card debt, can drain your budget every month. In addition, if you only pay the minimum monthly payments on credit cards, you’ll be overpaying for your purchases with all the interest payments added into those monthly minimum payments. If you were to pay off some of that debt with your tax refund, then those monthly payments you would’ve been paying can now go towards your money goals, which include having money for vacations, saving up for a house, or investing and watching your money grow. Think of it as giving yourself a raise! Put It in High-Interest Savings Interest rates have been going up over the last year or so. That means you can put your money to work. Depositing your money into a high-interest savings account can help you earn around ten times more than the average offers of banks. Shop around to find the best banking option for you and your money. Stash Away Money in a Certificate of Deposit Do you have a long-term goal like saving up for a house? Give yourself a running start by putting that cash in an account that can earn you more money like a certificate of deposit (CD). It’s a low-risk way to boost up the interest earned on money you’re going to need in a few years when you find that perfect house. Invest in Yourself You may be spending more time at home, so use that time you had spent on your commute and invest in leveling up your skills. There are many online options where you can gain a certification or experience with programs used in your field. While no one can predict the job market, you can increase your value by building your expertise. Another way you can invest in yourself is by diversifying your income with a side business or a side hustle. Invest in the Market If you haven’t been able to invest in the stock market in the past, you may be able to start now given that some stock prices are lower. While things are volatile in the short term (less than one year), if you look at the historical returns, you’ll find that investing in the stock market long-term (over one year) may be a wise financial decision. One way to build a diversified portfolio without having to follow individual companies’ performance is by investing in index funds. An advantage of index funds is the lower fees which means more of your money is working for you. It’s a win-win situation! No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Get started Previous Post IRS Reports Tax Refunds are Up This Year Next Post Tax Benefits Available for Victims of Natural Disaster Written by Elle Martinez Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second. More from Elle Martinez Visit the website of Elle Martinez. Follow Elle Martinez on Facebook. Follow Elle Martinez on Twitter. Leave a ReplyCancel reply Browse Related Articles Tax Refunds 5 Smart Ways to Spend Your Tax Refund Tax Refunds Spender or Saver? Tips For What You Should Do with Your… Tax Refunds Top 5 Smartest and 4 Dumbest Ways to Use Your Tax Refun… Tax Refunds Why Is My Tax Refund Lower Than Expected? Tax Refunds Offsets for Taxes: What It Means & What to Do Tax Refunds 6 Reasons it Pays to File Your Taxes Early Tax Refunds How to Turn Your Tax Refund Into a St. Patrick’s Day … Tax Planning Back Taxes Explained: What They Are & How To File Tax News IRS Opens E-file on January 23: Get A Jump on Your Tax … Latest News Debt Ceiling Deal Passed, Averting Government Debt Defa…