Tax season is in full swing. Most of us are waiting for our income tax returns. You probably have plans for that money already.
Even if you don’t, other people do. Everywhere you turn you see signs for what you can buy with your tax refund. Businesses on every corner are scheming on your refund check.
http://www.revenue.go.ke/vat/VATRefundsataglance.html
Most people just buy consumer goods that lose value quickly.Most people blow it on clothes, vacations, furniture or as a downpayment on a brand new car. Of course, you’re not like most people. You don’t want to do what everyone else does because then you’ll get what everyone else gets.
If you want to do something different with your tax return and get better results then here are a few ideas.
1- Fund your emergency fund
Maybe your tax return won’t be enough for a full 6 months of living expenses. It’s probably enough to get your emergency funds. started at least.
2- Start your own business
You can take at least a portion of your refund and use it as seed money for a side business. It should be enough to test out your business ideas that you’ve never been brave enough to try.
For less than kes100,000 you can create a business and start selling online.
3- Pay for a class to upgrade your skills
Investing in yourself will usually benefit you more than anything else. Instead of buying stuff you can’t really afford, improve on your marketable skills. Paying a few ten thousands for a class can lead to hundred thousands of money of extra income.
4- Fund a Hekima Savings Account in Co-op Bank Kenya for your child’s college education
If you haven’t put any money to the side for your child’s college education then you may want to consider this. You can use your refund to open a Hekima Savings Account There are no minimums to open and your refund would be a good start.
https://www.co-opbank.co.ke/banking/personal-banking/personal-accounts/hekima-savings-account
5- Buy a car for cash
I know this is supposed to be about alternatives to buying stuff that goes down in value. And nothing goes down in value as quickly as a car. Still, a car can be a necessity.
If you need a car and can’t afford a new one then paying cash for a good used one might be the best choice.
If you get as much as kes1mil on your taxes that’s enough to get you a decent car to drive for now.
6- Pool your money with friends to buy/ create a business
This one you may never have thought about. You may think that your income isn’t much and your tax refund won’t be much. What if you and 2 or 3 friends put your tax refunds together?
You guys might be able to buy a small business opportunity or create one from scratch. Maybe you could buy a hot dog cart or put a down-payment on a laundromat.
You never know. It could be the beginning of something big that will change several lives.
Whatever you do, choose wisely
Hopefully, one of these ideas connected with you and you’ll choose one. Or maybe this post just inspired you to think differently about how to spend your income tax refund.
Whatever you choose to do, make it count.
Feel free to post any more ideas that could improve your life going forward.