Since taxes were due on April 18th, I’d imagine many millennials are expecting a tax return in the upcoming weeks. Before you book that trip to Vegas or buy the latest tech device, here are three ways you can use your tax return to build your wealth:
1. Make an Additional Student Loan Payment
Part of building your wealth is to decrease your debt. Making an additional student loan payment will allow you to pay off your loans faster. Depending on your loan service provider, you might be able to allocate your additional payment to a specific loan group. By doing this, you can pay down a loan with a higher interest rate.
2. Open a Brokerage Account
Warren Buffet once said, “Someone's sitting in the shade today because someone planted a tree a long time ago.” Most millennials might not have not a lot of money, however, millennials do have time. Just remember that investing is a marathon, not a sprint.
If you already have a brokerage account, you can use your tax return to purchase more stocks. Or, you can make a contribution to a retirement account, like a ROTH IRA.
3. Invest in Yourself
It’s important you invest in yourself as often as you can. This starts with your physical, emotional, and psychological health.
Aside from your health, you can invest in yourself by developing your skills. This ranges from taking a professional development course, getting a certification, to utilizing available training with your employer. If that is too much of a time commitment, you can still expand your knowledge by reading a book.
On a side note, if I would recommend these books:
1. Rework by Jason Fried and David Hansson (if you are an entrepreneur)
2. Think and Grow Rich by Napoleon Hill (the original book on self motivational)
3. The Monk and the Philosopher: A Father and Son Discuss the Meaning of Life by Jean-Francois Revel, Matthieu Ricard, John Canti, and Jack Miles.
How are you planning to use your tax return?
- RO
Disclaimer: This is a personal blog. Ryan Oda (#RS-75450) is a licensed real estate salesperson with Benn Pacific Group, Inc (#RB-19423). The opinions expressed here represent my own and not those of Benn Pacific Group, Inc., its agents, and or its affiliates. My thoughts and opinions can change over time. This blog is intended to provide a semi-permanent snapshot of a selection of various thoughts and opinions that may not be the same, or even similar, to those I may hold today.
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