Success
previewpreview

Use Your Tax Refund to Invest in Yourself

Buy Credits Return to Shop

2 Credits

In 2016, the average refund issued was $3,053, a slight increase from the previous year, according to Forbes.

View Content

Buy More

Category:

Content Preview

preview

preview

>Mark it down on your calendars: April 17 is Tax Day for filing our 2016 returns. In 2016, the average refund issued was $3,053, a slight increase from the previous year, according to Forbes.
That $3,000 could make a big difference in your life depending on how you spend it. You could use that chunk of change to pay down debt, for necessities like food and bills or you could invest your return instead.
Don’t get me wrong, paying down debt and paying for necessities are absolutely crucial. If you haven’t done that yet, you can stop reading right here, my friends. However, if you’re thinking about putting your money to work, read on for an investment that could make you $100,000 or more over the next 10 years.
Why Investing in Yourself Makes Cents
Of the many ways tech companies keep their employees happy, tuition reimbursements are one of the most innovative because it’s an investment that results in better employees. Take a page from their playbooks by using your tax refund as an investment in your education.
You can also consider investing in the stock market. CNN’s tax return calculator does the math for you: If you invest $1,000 at 8 percent (a hopeful stock market return), you’ll have $2,159 after 10 years. Not too shabby.
If you’re working for $10 an hour, full-time, you’re making $400 a week, pre-tax. That’s $20,000 a year over 50 weeks. If you can get a raise at your current job (or get a new job!) to $15 an hour, that yearly total becomes $30,000. Each $5 an hour more you can earn is another $10,000 a year. So if you only do that one thing, that’s $100,000 after 10 years. Compare that to $1,159 and see how investing in yourself can have exponential returns.
Here are three ways you can use your refund to learn more and be better positioned for raises, promotions and completely new jobs.
Learn from Others
You already know there are free online colleges and financial aid through sites like Coursera and Kahn Academy. With Coursera’s specializations, however, you get a focused curriculum to master any number of skills, even if it costs you (in-state costs can range from $300-400 per credit hour). Besides, putting down some money can be a form of accountability, insuring that you actually finish the courses.
If you want to get specific skills, look into workshops at an organization like General Assembly, which has a number of locations, as well as online courses related to topics like web programming, branding and design which can introduce you to new concepts at affordable prices (ranging from free meet-ups, cheap one-off workshops and pricier weekly evening classes).
Learn from Yourself
If you have an interest in business or entrepreneurship, there’s nothing like firsthand experience. Check out Chris Guillebeau’s $100 Startup for an amazing amount of resources and motivational anecdotes. If you want to see an actionable plan for launching a website, this redditor writes a month long guide to launching a project. He compares the amount he learned in that one month to a do-it-yourself MBA.
Create Your Own Opportunities
By earmarking some of your refund for future opportunities, you allow yourself to say yes more often. Put aside an amount in your monthly budget that’ll allow you to do things like take a mentor to dinner or drive to another city for a conference.
The temptation is to put money away for the future (or, let’s be real, spend it!), but you should consider spending the money in an intentional, effective way. Investing in yourself is one of the best investments you can make.

Get In Touch

WE CAN HELP