A tax return is a great income boost to have. Many people eagerly look forward to tax returns in order to pay down expenses or fund entertainment, travel, or other indulgences. However, using money to make more money is one of the best things to do with a tax return. Below, you will find five ways to reinvest a tax return with little risk and limited initial investment.
Renting a Room
Advertising room availability is virtually the only major expense with this option. A room or other unused portion of your residence can turn into a cash flow generator with savvy publicity and choice of clients. Be sure to spruce the place up a bit, and even find some cheaper pieces of art to give it a real unique feel. Be sure to check the quality before you buy, as local advertising builds personal trust and confidence that will go a long way in establishing your credibility as a reputable room renter.
Investing in a large, stable corporation with dividends gives the benefit of predictable income with possible capital gains as an extra bonus. In good times and bad, many dividend-yielding stocks can hold their own in a diversity of market conditions. Also look for up and coming companies, ones with unique ideas, or even ones that are working to help others scale up their own product lines. The current focus on cosmetics is also one to take advantage of, as there are companies out there taking unique and innovative approaches to the process
Many people have built up success through legal online gaming sites, be it online poker, daily fantasy sports, or any number of online outlets. The advantage is finding an area in which you’re knowledgeable, and then using one’s knowledge to gain the upper hand on typically inferior players. With the advancements in gaming technology, it makes it incredibly easy for anyone to stumble into a poker room and therefore provides the top skilled players with a decided advantage over the field.
Programming and Web Development
There seems to be no end to new websites and software for tasks ranging from the critical to the mundane. Investing a tax return into lessons that give results in terms of web development and programming expertise will pay off handsomely as you become an in-demand computer professional. You can cater to large institutions or one-man startups, all for a handsome profit. Even just gaining a command of efficiency softwares can provide a lucrative service to companies who would otherwise suffer through learning on their own, so you don’t exactly have to go out and become a web developer overnight.
Repair and Resale
Repairing, upgrading, and reselling items like furniture can give an extra benefit beyond the higher sales price. Living space used for business expenses such as this qualifies as a deductible expense on taxes, meaning that the profits from furniture repair and resale are coupled with a smaller tax burden.