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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 Dobyns
Jeffrey T. Dobyns

CFP®, CLU, CHFC

President, SageSpring | Financial Advisor, RJFS 
615-861-6102

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Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Jeff Dobyns is President and Founder of SageSpring Wealth Partners. Passionate about serving his clients, he strives to truly get to know them, understand their goals, and provide them with financial confidence before developing and executing ongoing, strategic financial plans. 

In order to meet the highest standards of professionalism and ethics in the industry, Jeff is a CERTIFIED FINANCIAL PLANNER™ professional, a Chartered Life Underwriter, a Chartered Financial Consultant, and a participant of the Dave Ramsey SmartVestor referral service program.

Jeff has held executive positions with financial planning firms for more than two decades. He served as VP of Investments of Lykins Financial Group CPAs before founding SageSpring in 2002. Jeff has been recognized for his unwavering commitment to his clients, and as a leader among Raymond James financial advisors, earning membership in Raymond James Chairman’s Council every year since 2008.

Jeff devotes considerable time and resources to a number of causes. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. He is on the advisory board of The Signatry of Middle Tennessee, which works with families to increase their charitable giving to their favorite causes, as well as the advisory board for Halftime Institute of Nashville, an organization that coaches marketplace leaders to discern and engage in their life purpose. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. He is a past board member of Porter’s Call, a Nashville charity that provides free counseling for musicians and their families, and the Martha O’Bryan Center, which empowers those in poverty to transform their lives through work, education, employment, and fellowship.

Jeff and his wife, Amy, are grateful to be raising their four children, Gracyn, Hunter, and twins Tanner and Logan at Christ Presbyterian Academy. Jeff enjoys being outdoors with his family- boating, hiking, skiing, hunting and fishing.

Ramsey Solution’s relationship and agreement is between SageSpring Wealth Partners only. Raymond James Financial Services, Inc. is not affiliated with the solicitor arrangement between Ramsey Solutions and SageSpring Wealth Partners.

Membership is based on prior fiscal year production. Re-qualification is required annually.  The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of an advisor’s future performance. No fee is paid in exchange for this award/rating.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.