6 Smart Ways To Invest Your Tax Return Instead Of Blowing It
In 2019, the average tax refund was $2,869, which is almost an entire month of income for many Americans. A sudden influx of cash makes it so tempting to splurge, but does that align with your long-term financial goals? As savvy responsible women, we have options besides breaking the bank on a new pair of heels, a lavish vacay, or a designer purse.
Have you thought about how you will use your lump sum of money this year? It's not too late to make smart financial decisions. If you want to invest in your future, then learn the best ways to invest your tax return instead of blowing through it.
Start Or Grow A Business
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You may be a founder or thinking about becoming a founder. Either way, an investment in something that's all yours is a great way to spend your tax return. In 2019, there were 30.7 million small businesses in the U.S and nearly 80% of those businesses employ only the founder. Business is booming! Instead of spending your money on material things that give you instant gratification, use your tax return to start or grow a business that helps you in the long-term.
The majority of businesses are started using personal savings. You never know what could happen. You could turn your tax return into a profitable business that pays for the luxuries you didn't splurge on this year.
Create Or Expand An Emergency Fund
If you haven't created an emergency nest egg, then this is the perfect opportunity to finally create one. You don't have to dedicate all of your tax return to an emergency fund, but it would be smart to dedicate at least a small portion. If you already have an emergency fund, it doesn't hurt to expand because emergencies are truly unpredictable. It's better to be safe than sorry.
Invest in Career-Building Certifications Or Continuing Education
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The most successful business leaders in the world all have different paths, but they tend to agree on one thing. Learning is key. When the average person has 10 jobs by age 40 it's easy to understand why highly accomplished people preach the importance of staying competitive by continuing your education. This doesn't mean you have to run to the nearest university and spend a ton of cash. Continuing your education is as simple as taking an online class, buying helpful books, or gaining a certification. Whichever method helps you to acquire knowledge to better yourself. Whether it's for financial gain or to fulfill a passion of yours.
Leave Your Debt Behind
Paying off your current debt is a fantastic way to spend your extra cash, especially if your interest rates are sky-high. The less debt you have, the less accrued interest.
This is the perfect time to pay off existing credit card debt, especially debt that you acquired in anticipation of tax season. Or, contact your student loan servicer to make an extra student loan payment. Ditch the monthly minimum this month, so you save money in interest costs. Just make sure to prioritize debt with the highest interest rates.
Invest In Valuable Stocks
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Investing your money now could potentially make you rich in the future! According to an analysis by Rubicoin (digital educational investment platform), had a person invested the average tax refund of $3000 in Netflix, Apple, and Amazon over 10 years, then their $30,000 investment would have turned into $220,000! Now that's a good return on your investment.
Just think, with the proper research and strategic investment decisions, that could be you. Stock ownership is a great source of passive income. Make money while you sleep! Investing in stocks is perfect for someone who isn't scared of taking on risks to potentially reap the benefits in the future.
Save To Buy A Home Or Increase Home Equity
If you want to leave behind the days of renting or living at home, use your tax return towards a down payment on a house. Start the journey towards saving enough money to cover a down payment and closing costs for your home. Next year, you could be sitting in your very own place decorated to your liking!
If you already own a home, then use the extra cash to increase your home equity. You can make extra mortgage payments or make a direct payment to the principal. Paying down housing debt can help to lower interest expenses over the length of the loan. The more home equity you have, the less you owe while gaining more value in your home. Unlike many other forms of debt.
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Aaliyah Sydonie Williams is a lover of pomegranates, intimate concerts, fluffy socks and all things R&B. She's a founder of a college advice blog, Her Little Corner, where she dishes helpful advice for college students to slay their college experience. When Aaliyah isn't eating at Starbucks, she's studying for her courses in finance, discovering new spots in the city, and brushing up on her photography skills. Keep up with her at Aaliyah Williams (@aaliyahsydonie).
Beyond Burnout: Nicole Walters' Blueprint For Achieving Career Success On Your Own Terms
Nicole Walters has always been known for two things: her ambition and her ability to recognize when life’s challenges can also double as an inspiring, lucrative brand.
This was first evident more than a decade ago when she quit her job as the corporate executive of a Fortune 500 company during a Periscope livestream. “I’m not sure if there’s an alignment of [our] future trajectory. I’m going to work for myself. I'm promoting myself to work for myself,” she said at the time before flashing a smile at the viewing audience. As she resigned on camera, a constant stream of encouraging messages floated upwards on the screen.
By 2021, she’d fashioned her work as a corporate consultant and her personal life with her husband and three adopted daughters into a reality show, She’s The Boss, for USA Network. This year, she released the New York Times bestselling memoir Nothing Is Missing, written as she was in the process of getting a divorce and dealing with her eldest daughter’s struggles with substance use.
Convinced that there’s no way the 39-year-old has achieved all of this without intentional strategic planning, I asked her about it when we spoke less than a week before Christmas. I’d seen videos on social media of her working on 2024 planning for other brands, and I wanted to know what that looked like following her own year of success.
She listed a number of goals, including ensuring that the projects she takes on in the new year align with her identity “as a Black woman, as an African woman, as a mother, as someone who has lived a [rebuilding] season and is now trying to live boldly and entirely as themselves.” But, I was shocked by how much of her business planning also prioritized rest.
Despite the bestselling book, a self-titled podcast, and working with numerous corporations, Walters said she’s been taking Fridays off. This year, she doesn’t want to work on Mondays, either.
“A lot of us think we work hard until retirement hits. I want to progress towards retirement,” she said, noting that she’ll check in with herself around March to see how successful this plan has been. The goal, Walters said, is to only be working on Tuesdays and Thursdays by sometime in 2025. “It is intentionally building out what I know I would like to have happen and not waiting for exhaustion to be the trigger of change.”
"A lot of us think we work hard until retirement hits. I want to progress towards retirement... It is intentionally building out what I know I would like to happen and not waiting for exhaustion to be the trigger of change."
Walters said the decision to progressively work less was partially in response to her previously held notions about her career, especially as an entrepreneur. “When I first started, I thought burnout was a part of it,” she said. “What I didn’t realize is that even if you’re able to bounce out of burnout or get back to it, there’s a cumulative impact on your body. If you think of your body as a tree and every time you go through burnout, you are taking a hack out of your trunk, yes, that trunk will heal over, and the tree will continue to grow, but it doesn't mean that you don’t have a weakened stem.”
But, the desire for increased rest was also in response to the major shifts that occurred three years ago when she was experiencing major changes in her family and realized her metaphorical tree was “bending all the way over.”
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“One of the things we have to recognize, especially as Black women, is that there is this engrained, societal, systemic notion that our worth is built around our productivity,” she added. “That is some language that I think is just now starting to really get unpacked.” In recent years, there’s been an increased awareness of achieving balance in life, with Tricia Hersey’s “The Nap Ministry” gaining attention based on the idea that rest, especially for Black women, is a form of resistance. Even online phrases such as “soft life” and “quiet quitting” have hinted at a cultural shift in prioritizing leisure over professional ambition.
"One of the things we have to recognize, especially as Black women, is that there is this engrained, societal, systemic notion that our worth is built around our productivity."
If companies are lining up to consult with Walters about their brands and products, then women have been looking to her for guidance on starting over since she invited them to livestream her resignation 12 years ago. As viewers continue to demand more from content creators in the form of intimate, personal details, Walters has navigated her personal brand with a sense of transparency without oversharing the vulnerable details about her life, especially when it comes to her family.
The entrepreneur said she’d been approached to write a book for several years and was initially convinced she was finally ready to write one about business. “I started to do that, and then I went through my divorce. When that happened, I said, why would I write a book telling people to get the life that I have when I’m not sure about the life that I have,” she said.
Instead, she decided to write Nothing Is Missing and provide a closer look at her life, starting with being born to immigrant Ghanaian parents (“You need to know my childhood to know why I’m passionate about entrepreneurship.”) through the adoption of her three daughters and eventual divorce. Despite her desire to share, however, she said she felt protective of the privacy of her family, including her ex-husband.
When discussing this with me, Walters said she was reminded of a lesson she learned from actress Kerry Washington, who released her own memoir, Thicker Than Water, just a week before Walters’ book release. Washington’s memoir grapples with family secrets, too, specifically the fact that she was conceived using a sperm donor and didn’t learn about it until she was already a successful TV star. While Washington reflects on how the decision and subsequent deception impacted her, she’s also careful to hold space for her parents’ experiences, too. “A lot of things she said was that she had to recognize where she was the supporting character and where she was the main character,” Walter said.
This is something Walter worked to do in Nothing Is Missing when discussing her daughter’s struggles with addiction. “I was very intentional about making sure that I did not reveal more than what was required,” she said. “If I say something about someone’s addiction, I don’t need to go into the list of the substances they used, how they used them, what I found. [I don’t need to] walk into a room and paint a picture of what it looked like for people to understand.”
Walters said some of the most vulnerable moments in the book barely made a ripple once it was released. She was extremely nervous to write about getting an abortion, she said. But no one has asked her about this in the months since the book was released. Instead, people have been more interested in quirkier revelations, such as the fact that she once appeared on Wheel of Fortune.
“I have bared my soul about this thing I went through in my youth that has changed me for people, and people are like, ‘So how heavy was the wheel when you spun it?’” she said, chuckling. “It just goes to show that people never worry about the thing that you worry about.”
With the success of Nothing Is Missing, Walters said she still isn’t planning to release a business book at the moment. But, as she navigates parenting a teenager and two adult children while also navigating a relationship with her new fiancé, Walters said she believes she has at least one or two more books to write about her personal journey. “There is sort of an arc of where my life has gone that I know I’ve got something more to say about this that I think is important, relevant and necessary,” she said.
In just three years, Walters’ life has undergone a major transformation. There’s no telling what the next three years will have in store for her, but it seems likely she’ll retain an inspired audience wherever life takes her.
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Is Weed Having An Effect On Your Mental Health? Here’s How To Cut The Habit
Weed is arguably one of the most socially accepted drugs on the market. Generally acknowledged as a conventional part of social and recreational settings, you can’t go too far without encountering the causal question, “So… do you smoke?”
Naturally, who doesn’t want to take the edge off every now and then? According to the National Institute of Drug Abuse, THC, the psychoactive compound found in cannabis that produces its euphoric and mind-altering effects, embodies a chemical structure “similar to the brain chemical anandamide.” This allows our body to recognize the similarity and alter our normal brain communication, leading to the familiar hazy high feeling one gets after taking a hit.
Because of marijuana’s accessibility and social acceptance, it’s uniquely set apart from other recreational substances. Unlike the stigma attached to harder drugs or excessive alcohol consumption, waking and baking and smoking for leisure, stress reduction, or to pass the time, is often normalized. While many users report positive experiences with weed and find relief from anxiety and depression symptoms, it’s important to consider the potential effects that long-term use can have on one’s mental health and whether it’s time to quit.
In order to do so, we must address one important factor: cannabis is complex.
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For years, researchers have been determined to settle the quandary of whether individuals develop anxiety and depression due to cannabis use or if they use cannabis products as a coping mechanism for existing mental health issues. Still, one thing that is clear is how the effects vary from person to person, and the earlier one starts smoking, the more sustainable they are to long-term drawbacks.
“We do know that when teenagers or young adults are using cannabis more frequently, they have more trouble with anxiety and depression, as compared to people who are using cannabis or marijuana products when they are older adults,” Amie Goodin, Ph.D., MPP, assistant professor at the University of Florida’s Department of Pharmaceutical Outcomes tells xoNecole.
Dr. Goodin explains that on average, there is an observed trend indicating a higher likelihood of negative effects, such as anxiety and depression, among individuals who engage in frequent and substantial cannabis use, though defining "a lot" is challenging.
“There is good evidence to suggest that people who are using pretty regularly, meaning most days and using when they are younger, they tend to have worse anxiety and depression,” she adds. These differences in usage patterns can result in varying experiences for individuals, making it complex to establish a clear threshold for what constitutes high cannabis use.
Still, there are common signs that marijuana users can look out for when determining whether their usage should be reduced or cut out. As Dr. Goofin notes, it’s all about accessing the impact weed is having on one’s lifestyle, health, and relationships.
“If you've noticed that you're spending less time with people that you used to enjoy spending time with, having trouble at your job or school, that's a bit of a concern,” she says. “Another thing to keep in mind is what's happening with your sleep? If it's showing up in your mind, and it's taken up a lot of space in your head, maybe that's a good reason to take a step back and evaluate if you need to talk to somebody?”
Are There Long-Term Effects to Smoking Weed?
While Dr. Goodin notes that smoking weed isn’t inherently life-threatening, that doesn’t necessarily mean there are no downsides. Individuals with pre-existing mental health challenges unrelated to marijuana use, such as post-traumatic stress disorder or psychosis disorders, may experience more severe episodes when using cannabis regularly. Additionally, similar to smoking tobacco, “There might be risks for your heart and cardiovascular system,” which can affect one’s breathing and lung health in the long run.
How to Quit Smoking Weed
Treatment guidelines for cannabis-related issues are currently lacking, partly because existing treatment options are designed for individuals with more severe health issues. Still, if smoking weed is a habit that you’d like to ditch, here's a guide to initiate the process:
1. Create a Sleep Hygiene Plan.
“If you’re smoking weed or vaping, and stop, getting sleep can be tough,” Dr. Goodin explains. “Coming up with a plan for your sleep in advance can be helpful. Thinking about putting in more effort to help your body be more responsive to natural sleep cues is a good place to start.”
2. Schedule Your Annual Check-Up.
Dr. Goodin says, “Scheduling the appointment that we all put off is our regular annual check-up. The kind of advice and guidance from your healthcare provider can make a difference in knowing whether or not there needs to be other discussions made about your weed usage.”
3. Talk to a Friend.
“You don’t necessarily have to do the accountability buddy thing, but it might be a good idea just to let somebody within your social circle know that you’re trying to quit,” she says. “Especially if you tend to hang out with people and smoking is the activity. It's a good idea to talk to your friends and say, ‘Hey, could we try something different?’”
Visit the Substance Abuse and Mental Health Services Administration at https://www.samhsa.gov/ for additional mental health support resources.
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