first vat return what can i claim

How do you make the most of a tax refund?

The first thing many people think of when they get their tax refund is to splurge on themselves and treat themselves. This is understandable, but it does not make the most efficient use of your money. It would be better for you to invest in yourself through a variety of targeted investments that will grow over time. Here are some suggestions:

1) Invest in your home – whether it be renovation or building up your net worth in the short-term, this will improve how all aspects of life work for you in ways that can’t be simple words or numbers on paper. You can even use the excess of your refund to pay for the renovations you would like to make.

2) Invest your money elsewhere – If you are strapped for cash and need some extra, a worthwhile investment is in a savings account for yourself. Yes, all budgets have to include new clothes or pots and pans, but don’t forget about protecting your future self’s well-being now and in the future. Take advantage of all tax refunds by setting up a regular automatic transfer from your bank account into an individual retirement account (i.e., 401k) or money market fund.

3) Invest in others – You can still be generous with your money if you do not splurge it on yourself. You could look at other ways to improve your life by helping someone else whose situation may be worse than yours. This will make you feel good about yourself, help someone else, and benefit society as a whole. Although this is not the conventional way to treat a tax refund, it is a great way to prove that you can be selfless with your money and still benefit from doing so.

4) Invest in a college fund for your children – This might not seem like an investment, but it would be if you set up a plan to invest regularly over the years (and definitely before any tax refunds).

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