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Reinvesting profits tax return

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Login Self-Study Courses. Financial Modeling Packages. Industry-Specific Modeling. Real Estate. Professional Skills. Finance Interview Prep. Corporate Training. Technical Skills. View all Free Content. What is the Reinvestment Rate? In This Article. Email provided. Your Download is Ready. Inline Feedbacks. X Please check your email. Learn Financial Modeling Online. Paperwork and crunching numbers can be a headache, but for some people, tax season has a silver lining—getting a tax return.

Do you save it? Spend it? Invest it? Of course, saving your tax refund is always a good idea. Your tax return may be the last bit of funds you needed to make your purchase or get you closer to your goal. What if your refrigerator stops working? What if your car breaks down? What if you lose your job? While we hope none of these things happen, the truth is that life happens. Having an emergency fund can be a huge life-saver and give you peace of mind in the meantime.

You can also put your tax refund into your retirement account. Disclaimer: at Leesa, we're not financial planners—sleep is more our thing, so we recommend talking to a professional for advice on finances and savings. They can point you in the right direction and help you make smart decisions with your tax refund. Put your tax refund toward paying down your debt. While this isn't necessarily a fun way to spend your return, it is a smart way to use your return. If you have multiple credit cards with debt, consider paying down the one with the highest interest rate first.

Can you pay one or two cards off in full? Another good use for your tax return is putting it toward your mortgage loan. You may be able to pay off a chunk of your mortgage loan with your tax return money. Again, we're not experts in this, so talk with a professional to see what your options are. Do you have student or car loans? Yep, you guessed it. You can put your tax refund toward paying these off, too.

Do you have a faucet that always drips or a toilet that always runs? Using your tax returns to fix things around the house is another smart option. Not only will these improvements fix immediate, short-term problems, they can save you on utility bills in the long-term, too. Invest your tax refund in home updates and renovations. Many updates will add to the value of your home and help you build equity!

Maybe it's finally time to update your master bathroom or upgrade old appliances to new, energy efficient models. This is great for you, as the homeowner, and can also benefit you when it comes time to sell. The same thing goes for your car. If you never got your bumper repaired after your fender bender or need new tires, invest you tax refund in your car. Again, this fixes the immediate problem and can benefit you down the line.

Put your tax return toward… you! Do your research to find the best sale or deal so that you get the most bang for your tax-refund buck. Depending on the size of your tax refund, you may be able to make a bigger purchase or investment like the renovations and upgrades we talked about before! When we say "big purchases," your mind most likely goes to appliances, furniture or a new car, but what about reinvesting in your rest?

That all starts with the right mattress.