What to NOT Spend Your Tax Return On

Tax season is under way which means tax returns are too. Though this may seem like a little extra cash, this is a great time to save and take advantage of the added bonus, even though you technically already earned it. This month, we’re listing some things you should NOT spend your tax return on. Be wise with you funds and invest smartly in yourself.

1. A new boat: If you’ve been interested in a boat and done your research, then by all means go for it. But if you just decided you want a boat on a whim, make sure you look into the costs of docking, storing, and maintaining a boat. This is not a cheap hobby.

2. A new car: Unless you need a new car, cars tend to be poorer investments since they lose a great deal of their value the second you drive off the lot.

3. Frivolous Purchases: This is an all encompassing category, but each person has their own vice. If you like expensive liquor, clothes, jewelry, tools, etc, this is the category for you.

Most of those objects have little return on investment, and a tax return is a great time to decrease any outstanding debt you’re paying off, save for future investments (i.e. children’s college or first house), or spend in something you truly need or have spent time thinking about, like an upgraded kitchen. Spend wisely this season and watch your investments grow!