The Best Way to Spend Your Tax Refund: Invest in Yourself

Too many Americans have been brainwashed with the belief that money always has to be hard to come by, but it doesn’t have to be this way.

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(WASHINGTON DC) - The deadline to file your taxes is here, and now most Americans play the waiting game, eagerly checking the mailbox every day for that nice fat refund check. There are two primary schools of thought on what to do with a tax refund.

The first says to use the money wisely. For example: make an extra mortgage payment, pay off a high interest rate credit card, put it into your retirement account, fix up the house, use it as a down payment on a new car, pay down your school loans and more.

Then there are those who look at it completely different, and tell us to have fun with the extra money. They say go on a shopping spree, buy that purse you always wanted, rent a limo and treat your friends to the fanciest restaurant in town, get that tattoo you’ve always wanted, get those 24 inch wheels with the fancy rims on your car or go to the casino and bet it all on black on the roulette table.

The first philosophy is selling you vegetables and the second is selling you candy. One is the advice given by your parents and the other by a friend who wants to have a good time. One encourages you to follow the status quo and the other will get you even more in the hole.

Then there is a third way of looking at how to spend a tax refund that we don’t hear much about, and this one will provide you with financial freedom forever: invest the money on improving yourself through self-education or by learning a new skill set. Use the money to become an entrepreneur. You can learn software coding; get your securities, insurance or real estate license; start an online business; learn how to sell; learn how to trade online; take cooking classes and start your own restaurant or meal delivery service; learn a new language; learn how to play an instrument; become a certified personal trainer or whatever interests you. The idea is to learn something of value that you can capitalize on, a skill or a trade that people need and are willing to pay for.

Some of the largest and most successful companies in the world were started by entrepreneurs - names like Apple, Dell and Microsoft, for example. And even if you don’t go on to become quite that large or crack the Fortune 500, we’re living in the era of the small business owner. Millions of Americans are breaking away from the traditional norms of the 9 to 5 and the daily grind, and are becoming their own boss. And it’s many of these people who are creating a new lifestyle for themselves and their families, not having to worry about things like credit card debt or having enough money at the end of the month to pay the mortgage.

Too many Americans have been brainwashed with the belief that money always has to be hard to come by, but it doesn’t have to be this way. I was 24 and buried in nearly $50,000 in credit card debt. Today I’m a successful CEO of my own company and financially independent. The reason: I used my $2,500 tax refund and invested it in learning a new skill. You can do the same thing.

When that tax refund comes in the mail this year, don’t have your vegetables and don’t have your candy. Invest that money in yourself and get the healthiest return ever. My hope for you next year is that you aren’t receiving a tax refund, but are paying taxes on all the wealth you’ve accumulated through your new successful endeavors.

Patrick Bet-David has an intriguing rags-to-riches story of an immigrant from war-torn Iran turned successful entrepreneur.  He is a noted author, speaker, CEO and financial literacy blogger.  www.patrickbetdavid.com