We’re going to be real here: Who doesn’t like getting a tax refund? Getting money back is a great feeling! Yet, getting money back and resisting the urge to use it all to “treat yo’ self” is hard. So here are 5 ideas to “treat yo’ self” and set yourself up for financial success in 2022.

1 | Get Paid 2 Days Early

Really Treat Yo’ Self: Invest in You

You are your most vital asset. Your knowledge, skillset, and unique characteristics give you a competitive advantage. Don\’t forget just how important it is to invest – or re-invest – into yourself. Through training sessions, certifications, virtual conferences or other forms of personal development, you can increase your value and position in the working world. Build your skillset and find and engage new online communities to build up your network. And if you are feeling burnt out or overwhelmed, invest your time and refund money into your mental health and well-being. You can’t conquer the world on an empty tank, so use your refund to refuel yourself.

2 | Save Your Change

Focus on Needs and Not Wants

“Needs” are about making smart purchase decisions that provide necessities for you and your family. “Wants” are those indulgences we gift ourselves with from time to time. Now, we’re not saying that you don’t deserve a “treat yo’ self” moment – after the last couple of years we all deserve that. Remember this refunded money is extra money, saving it for the future – or a rainy day – would be great. But if you have to spend it, make sure you focus that spending on a true need that you or you and your family have at the moment.

3 | Register for FREE OneTransaction Conference

Stacks on Stacks: Increase Your Savings

Another great idea: stash your money in a savings account. Avoid mingling your spending money with your savings. It’s a good idea to have separate accounts for each savings goal you have. Whether that’s buying a house, going to college, or starting your own profitable business, this approach can help you build strong financial habits.

Quick side note while we’re talking savings, do you have an “in case of emergency” savings account setup yet? If we’ve learned anything over the last couple of years, it’s to expect the unexpected. Having some financial cushion setup so when things like unexpected medical bills or natural disasters happen could help you stress less in the moment. You might be surprised by just how much having at least $500 in savings can help you deal with in times of need. It’s suggested to have enough in your emergency fund to cover 3 months of living expenses, so start building it now!

4 | Earn Referral Fees

Get Out! Unload Some Debt

High interest debt can be a massive roadblock when it comes to accomplishing your goals faster. Want to buy a car? A home? The amount of debt you carry plays a big role in your ability to make your dreams a reality. Freeing yourself financially through debt elimination is key to achieving financial freedom! So, use your tax return to get out of debt.

5 | Get Cash Back

Make Money Moves: Put Your Money to Work for YOU

Investments can be a good approach to putting your money to work for you by helping you build wealth that can pass from one generation to the next. The power of compound interest – which is the interest you earn on interest – means the more you let the investment sit AND consistently add to it, the more you will see in returns. For example, suppose you invest your initial $3,000 refund into your investment account and keep contributing just $100 per month, with an expected 6% average annual return for 20 years. In that case, a total of $27,000 invested could about double your money at around $54,000.

Those are a few ideas for using your tax refund to set yourself up for financial success in 2022, and maybe even beyond it. If nothing else, we hope these ideas inspire you to find new ways to make your money work for you!

OneUnited Bank

OneUnited Bank, the nation’s largest Black-owned bank and FDIC insured, understands we have to focus on money and technology to close the racial wealth gap. With your support, by simply opening and actively using a OneUnited Bank account, we will continue to accomplish our mission!

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