a us federal tax 1040 income tax form with money and refund check

5 Smart Ways to Spend Your Tax Refund

Now that April 18th has come and gone, you’re probably eagerly awaiting your tax refund (if you’re going to get one). If you’re a spender, you might have already decided to use that money on your next house project or family vacation. If you’re a saver, you’re probably wondering if you should deposit it straight into your money market account or invest it in your Roth IRA. Either way, now is the time to start thinking about how to use your tax refund wisely. 

Remember, a tax refund isn’t a monetary gift from Uncle Sam. It’s the return of your own hard-earned dollars that you loaned to the government throughout the year. When you think about it that way, it’s a lot harder to spend it frivolously. Trust us—your future self will thank you for spending your tax refund wisely to make powerful money moves.

Five Ways to Spend Your Tax Refund:

1. Invest for retirement.

One of the best things you can do with your tax refund is to invest it for your future. That’s right—retirement. When you put this money in your Roth IRA or invest in mutual funds, the power of compound interest will take over and help you reach the retirement of your dreams.

2. Open a college fund.

Instead of your own financial future, use your tax refund to bless your kids with financial well-being. The earlier you start saving for their college education, the better. Open up a 529 College Savings Plan and put that tax refund to good use. 

3. Purchase real estate. 

Have you been thinking about purchasing real estate? Maybe you want to buy a vacation home, some land, or a rental property. Using your tax refund to purchase real estate is a powerful money move that could benefit you for years to come.

4. Pay off outstanding debt.

It may not be the most fun way to use your tax refund, but paying off debt is a huge way to help build the foundation of your financial future. When you pay off old debt, you’re able to utilize more of your monthly budget for things like giving, saving, and investing.

5. Build your emergency fund.

These days, having an emergency fund is a smart money move that you don’t want to ignore. When you build an emergency fund of three to six months of expenses, you’ll have more peace when “life” happens. And it happens to all of us: the cars need new tires, the roof needs replaced, or your company goes out of business. Whatever the event, an emergency fund will be there to help you get through it. 

Like we said earlier, a tax refund isn’t really free money. It’s your hard-earned dollars that you’ve been loaning to the government. Now that you’ve got it back in your pocket, why not make a dent in a big financial goal like retirement, blessing your family members, or even purchasing property? Invite a SageSpring Wealth Partners advisor to help you make these powerful money moves. Your financial advisor will take the guesswork out of investing, saving, and working to build your financial future. 

Contact your advisor today and they’ll help you come up with even more unique ways to spend your tax refund tailored to your goals.

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Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Beyond crunching numbers and investment strategies, at SageSpring, we’re about building relationships. When you encounter Founder & President of SageSpring, Jeff Dobyns, it’s easy to understand why this is at the very heart of who we are as a firm. You won’t find stuffy formalities with Jeff; instead, you can expect to find him sharing a warm smile, communicating a compelling vision, or patiently untangling life’s complex challenges with clients. He believes in truly getting to know clients, understanding their aspirations and priorities, and navigating their financial plans with a tailored, comprehensive approach. Our team members have often been caught taking notes on Jeff’s effortless relationship skills from a distance, and we admire them for striving to learn from one of the best. 

Jeff’s financial expertise and wisdom are the perfect match to his innate people skills. Jeff holds the prestigious CERTIFIED FINANCIAL PLANNERTM certification, Chartered Life Underwriter (CLU®), and Chartered Financial Consultant (ChLU®) designations, and has held executive positions with financial planning firms for more than two decades. 

His dedication extends beyond the office to the boardroom and the local community, where Jeff is passionate about giving back. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. Jeff actively supports other initiatives in the community by sitting on the board of The Signatry of Middle Tennessee and the Halftime Institute of Nashville. 

Witnessing his four children, Gracyn, Hunter, Tanner, and Logan, excel on the field is almost just as rewarding, if not more, than celebrating the victories of seeing his clients overcome obstacles and build wealth. Spending weekends boating on the lake, hiking mountain trails, and fishing with his family are the moments Jeff cherishes most. It’s this grounded perspective that reveals the true meaning of wealth for Jeff: not just numbers on a page, but the freedom to create experiences that enrich your life and the lives of those you love. When you choose the Dobyns McMillin Wealth Team, you choose more than financial expertise. You choose a partner who champions your dreams, celebrates your victories, and walks besides you on the path to achieving your unique goals.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER TM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.