So a few TMFA readers asked what they should do with their tax return this year. If you recall I gave some investment suggestions here and here but I wanted to follow-up with a few more ideas on a smaller scale. As most of you know I am a strong advocate of planned spending and investing. If the government can invest your money all year long to make a profit then you should do the same to build your own wealth.
Suze Orman recently addressed the financial state of the USA economy on the Piers Morgan show. There were a few things she said that I took note of but one piece of advice in particular resonated with me. She said that in order for the United States to rebound from this recession more individuals would have to become entrepreneurs and create their own job and jobs for others. WOW!
CALLING ALL ENTREPRENEURS: If there was every a time in history to hit the ground running and get your business, it’s now!
With that being said, #takemyfoolishadvice and use your tax return to fund your side business until it can become your full-time business. Apply these simple rules: 1) Develop a solid game plan for your business to turn a profit and recoup your initial investment in the immediate future. 2) Allocate a maximum of $500 to your business start-up cost and not a penny more. 3) If you can’t fully fund your side business with $500 then move on to something else. Remember this is just a side hustle with the sole purpose of creating additional income not a new financial burden. 4) Be fully committed to putting in the work required to turn a profit and be successful.
Side business ideas: Baby sitting, enjoy cooking? start hosting classes or catering for small social events. Love to workout? Become a personal fitness coach. The key is figuring out a way to let your talent/skill produce an income.
Another planned spending investment opportunity is having your vehicle serviced. Throughout the year major car repairs can be very costly and temptingly avoidable once minor repairs are made. But your vehicle IS also your money-maker. It allows you to get to and from that job or job interview, you need it. Furthermore you’re shelling out money on a car note, car insurance, annual registration, and high priced gas. #takemyfoolishadvice get your car serviced and fixed. Take care of problems now while the funds are available and before they become unmanageable. Think about the cost of losing your reliable mode of transportation AND having to buy/lease a new vehicle.
Remember the goal is wealth building not just savings. Let me know what you decided to do with your tax return in the comment section below.