If you get a tax refund every year you’re actually giving the IRS an interest-free loan. It is, after all, your own money you’re getting back. But as long as you’re getting money every year around this time you might as well put it to good use.
Imagine if you could take your tax refund and turn it into even more money. I’m not talking about putting the money into a savings account so you can watch it grow as fast as grass grows. I’m talking about actually making some real money out of it. Here are 4 things you can spend your federal tax refund on that will actually earn you money.
Costco / Sam’s Club Membership
A warehouse club membership will set you back $40. You might have been holding off on buying one because you can’t justify the extra expense, especially when money is so tight. But now that you’ve got your tax refund you can finally convince yourself to join the club.
That $40 investment could translate into big savings for you and your family. Sam’s Club sells more than just food. They sell televisions, patio furniture, laptops and even clothing. Just making one large purchase can make you your money back and more.
Discounted Gift Cards
You can stretch your tax refund even more if you convert your cold hard cash into gift cards. Let me explain. People always receive unwanted gift cards every holiday season or for their birthday. Rather than let a $50 card go unused they sell it on a secondary market for $40. You then can buy that $50 gift card for only $45.
This of course works best when you buy a gift card from a store you regularly shop at. Don’t be concerned with making purchases through gift cards. Gift cards are much friendlier to use now than ever before. They don’t expire and depending on which state you live in you can even cash them in if the balance goes under $10.
Energy Efficient Repairs
You can take that tax refund and be extra green with it. You can spend some of it to lower all of your utility bills. You’ll not only be helping yourself but the environment as well. Here are some examples of some energy efficient expenses you can make.
If you want to lower your water bill you can buy a low flow shower head to use less water during a shower. If you want to lower your electricity bill you could switch your regular light bulbs for compact fluorescent bulbs. If you want to lower your gas bill you could hire someone to ensure your heating system is running efficiently.
Back Yard Garden
If you have some extra space in your back yard you might want to consider having your own backyard garden. What’s the point of having grass anyway? It requires water and doesn’t give you food. A garden, on the other hand, can look attractive and can help feed your family. So take that tax refund and invest into buying some seeds and a book on gardening. It’s a low-cost hobby with high rewards.
By growing your own garden at home you’ll reduce the amount of money you spend at the grocery store as well as the number of trips you make there. Have too many tomatoes growing? Trade with a friend who has an avocado tree. Have excess carrots? Trade with a neighbor who has an orange tree. Keep adding to your garden and soon you’ll be able to kiss those grocery store visits goodbye.