| The time has come once again. For some it is a time | | | | those numbers. |
| to get excited and ponder all the possibilities. For | | | | 3. Buy or start a business. This suggestion is not for |
| others, it's a time to bite your nails, grind your teeth, and | | | | everyone. Most of the people I talk to say they do not |
| wonder how you will come up with money. If you are | | | | have enough time to start a business, or they have |
| a good planner, business owner or just lucky; tax time | | | | some grand fear about what a business really is. The |
| can be a good opportunity to get some cash back into | | | | truth is there are many businesses you can start and |
| your pocket with your personal tax refund. For myself, | | | | work at part time. I currently have a vending business |
| I enjoyed several thousand dollars back this year. If | | | | and an online marketing business that I run while still |
| you do find yourself with some extra cash back at tax | | | | working full time. It can be done. Some business ideas |
| time, you may be wondering what to do with it. It is | | | | include:a. Vendingb. Online marketingc. MLM companies |
| actually possible to spend your personal tax refund | | | | I chose the above businesses because I know they all |
| and compound the effects to make more money. | | | | can be done part time and with minimal upfront costs |
| Don't be like most people. The average person will | | | | compared to other businesses. Most MLM companies |
| take their personal tax refund and blow it on liabilities. | | | | provide excellent training and mentorship. Usually a |
| They will buy things like: boats, TV's, unnecessary | | | | couple hundred bucks will get you all the training and |
| clothes and generally things they do not need. If you | | | | resources you will need to get started. I can also tell |
| want to get a better grip on your personal finances, | | | | you from experience that you can run an online |
| then your personal tax refund is a great starting place. | | | | business for less than one hundred dollars a month. Do |
| The thing that is funny is if you invest and spend your | | | | some research and see what you like. |
| money correctly early on, later you will be able to buy | | | | 4. Buy real estate. Here is the basic idea: Use the |
| all the boats, TV's and clothes you can handle. Spend | | | | money from your personal tax return as the down |
| your money wisely and the effects will compound: | | | | payment for a rental property. Rent the property out |
| 5 Ways to Make More Money Spending Your | | | | and let it pay for itself. I give this suggestion because |
| Personal Tax Refund | | | | this is one that my wife and I have done. We got back |
| 1. Pay off debts. This seems like a no brainier, but not | | | | enough from our taxes to put down 5% on a $320, |
| to everyone. Some of my past clients actually saw | | | | 000 4-unit rental home. The rental income from this is |
| their personal tax refund as extra money in their hand | | | | about $37, 500/year. We got a lot back form taxes |
| even though they had thousands of dollars in debt. | | | | because I am heavily invested in step #3. There are |
| Lets say you have a department store card at 28.8% | | | | many tax advantages to having a business, especially |
| interest that you are paying the minimum monthly | | | | if it's a home-based business. |
| balance of $50 on. If you put $2, 000 onto that card | | | | 5. Pay down your mortgage. This one is pretty simple. |
| you would save yourself $12, 481.62 in interest. $50 a | | | | Put your personal tax return directly onto the principal |
| month with a $2, 000 balance would take you 300 | | | | of you mortgage, assuming you have that option. I |
| months to pay off that card. Seems worth it to me to | | | | would only say to do this if you have no consumer |
| take your return and pay off that card. | | | | debt. It would make no sense to pay off a debt at 5% |
| 2. Invest It. This all depends what your definition of | | | | while still carrying debt at 18%. Putting money directly |
| investing is. You could top up your work pension | | | | onto the principal of your mortgage could save you |
| contributions, or invest it in mutual funds. You could | | | | thousands of dollars over the long term. |
| take your personal tax refund and put it into stocks, | | | | There are a number of different options you can |
| bonds or any other paper asset. If you are | | | | choose from when it comes to spending your personal |
| uncomfortable with the current market situation, you | | | | tax return. Don't be like most people and blow it on |
| could leave it in a high interest bank account or buy | | | | things you don't need. If you can afford to then by all |
| GIC's. The whole idea is to make your money work | | | | means, however, statistically only about 5% of the |
| for you instead of spending it on necessary items. | | | | population can afford to. Your tax return is a great |
| Sticking with our example: $2, 000 put into a mutual | | | | opportunity to get ahead financially if spent wisely. Find |
| fund that earns 8% annually would give you a vale of | | | | out what works best for you and use this opportunity |
| $14, 680.35 in 25 years. That is more than seven times | | | | as a springboard for financial success. |
| the value of your what your original refund was. I like | | | | |