4 Things You Can Do With Your Tax Refund Instead of "Flexin' On Dem Lames"

So I know these memes have been floating around since the beginning of the year like they do every year.

What time is it ladies and gentleman?!?!

That's Right, it’s TAX SEASON!

Here are a few of my favorite memes from tax season!

Tax Season, the best time of the year for some and the worst time of the year for others. Once you file your taxes and see how much money you will be getting refunded or how much money you will be paying will dictate your attitude towards it. For those people who owe Uncle Sam, just gon head and take that L gracefully my friend! But for those who actually get a refund, “lemme holla at ya for a second!”

This is a segment from the Chappelle Show featuring Anthony Berry aka Holla Guy!

Most people look at taxes as extra money, (a federal refund check is YOUR money you've earned throughout the year that you're choosing to give to the government to hold interest free) and I was one of them. When my younger self got those tax refunds back, I was told to do what I need to do. Pay for school, pay off bills, etc. It’s extra money! So, as a young man, of course I did the total opposite. Tattoos, cars, rims, shoes! Did I say tattoos?! I bought what I wanted to "flex" and look cool. As I got older, and more financially sound, I started to understand that those things were expenses and honestly a bad investment. Spending all my hard earned money I gave to government to hold on things that will not build me wealth. Building wealth is the name of the game, so why not let that tax refund you were going to buy new debt (car or motorcycle) with or purchase new expenses ( clothing, tattoos) with be the starting point to building wealth. If that money was coming out of your paycheck the whole year and you were living perfectly fine without it; I am sure you will be able do without it while at least trying to build wealth. Whether safe or risky, investing your tax refund money is a good way to use the money you were not missing for the whole last year. Here are 4 things you can do with your money when you get that "finesse check" aka federal refund check back from Uncle Sam.

1. Start Your Retirement Fund!

We all have to stop working some day! For people like me, I know what you’re thinking, “People don’t retire until their late 60’s, and I got time. Why do I need to think about retirement?” Well because it’s never too early. About 40% of millennials have no retirement strategy according to CNBC. Now that could be for many reasons! OK, you may not have the money right now, then why not start with money you never had and weren’t missing the whole year (your refund check). It can’t hurt. I can’t stress enough on how important retirement funds like 401k’s IRA’s and Roth IRA’s are. Think about your future! Your future self will thank you!

2. Start Investing

Whether real estate, small business, stocks, even sneakers; ( you will be surprised by how lucrative the sneaker market is ) put your refund money in something that will generate revenue. It’s hard for most people to save a large sum of money over a long span of time. Emergencies happen, plans/goals change, you finally get your chance to cop some Yeezy's ( maybe not this reason, but if you knew how hard yeezys were to get, you would understand), but when those things happen most people do not go change their allowances to give or receive more money in their paychecks. So treat that refund as your personal one way investment loan to yourself. Generate that fast or slow income from real estate investing, invest in that business idea that’s been on your mind for the last year, or break into the stock market (educating yourself first of course) and invest in stocks that will bear positive returns. These may or may not be a passion you have but these ideas will build knowledge, experience and your pockets. 

3. Donate

Now I know I'm hitting a nerve here, but why not use some of your flex check ( aka federal refund) to give back to the community. Whether it be your church, local school or organization you know. Everybody knows (and if you don’t know now you know *biggie smalls voice*) that when you give, it will be given back to you. I am a firm believer in giving sincerely will create more wealth for yourself in the long run. The return may not be money, but it will be of great value to you either way.

4. Invest in Your Self!

Take that class on investing, get that certification that you have been thinking about, go back to school if you stopped. Invest in yourself and your future. Go to seminars, buy more books, do things that will push your knowledge about your passion forward. If it’s as simple as taking basketball refereeing classes to make some extra money on the side to fuel your passion (yeah, I am going to ruin some 5th and 6th grader's Saturday mornings in the near future haha) DO IT. Invest in yourself to help yourself attain your goals and turn those dreams into reality. That refund can't be wasted when you are using it to better yourself.

Now, although "flexin on dem lames" with new clothes, cars, etc. is fun. Investing in your self, in your future, and giving back is just as fun. Lets be honest, it's not as fun as "flexin' on dem lames" but it sure is more rewarding. So before you cop that Louis Vuitton X Supreme Travel Bag for $2000 with your $2010 refund check, ask yourself this question. "Is this purchase an asset that will potentially grow my cash or an expense that will not grow my cash?" In the great book "Rich Dad Poor Dad", Robert Kiyosaki spoke about how understanding the difference between expense and assets will help you build wealth. So with the average tax refund of around $3000 according to the IRS for 2017, invest in something that will build wealth, that includes yourself.