It’s tax season again!
Are you excited? Well, you should be. If you’re anything like me, you’ve been playing with your tax software to see where you end up this year, and if there are any other deductions calling your name. TurboTax and I are best friends right now! You can check out the TurboTax’s free offerings online as well.
This is when the rubber meets the road, and you figure out what to invest in with your tax refund.
Let me preface this by saying that your tax refund is NOT a saving plan, or investment strategy. You shouldn’t “count” on that money. In fact, if you’ve done your account correctly, you shouldn’t be getting a ton back. But in the event that you are getting money back, there are a few things that you can do with the refund coming your way.
Most freelancers know that it’s really hard to predict what your income will be any given year, so having a nest egg of 3-6 months of expenses in your bank account will give that peace of mind, and help you sleep better at night during the slow months.
This, while not the most exciting strategy, is great for you if you’re just starting out, or have gone through some of your contingency fund already.