7 Brilliant Ways to Use Your Tax Refund for Future Financial Success

Doing your taxes might stress you out, but receiving a refund can put a big smile on your face. If you typically treat your income tax refund like prize money, you’re not alone — SoFi Associate Financial Planner Lauren Anastasio says that many people do, despite the fact that your refund is actually money you’ve already earned throughout the year. “I encourage people to think of their refund just like any other paycheck and use it for similar purposes,” she says. “So if you have debts or bills to pay, then your refund should be used to address those the same way you would with your regular income.”

Still itching to treat yourself or rarely have the extra funds to splurge? Anastasio cautions against mentally spending your refund before you have the money. “There’s nothing wrong with wanting to enjoy ‘found money,’ but by using your tax refund to improve your financial circumstances you may find that as time goes on your overall financial picture will start to improve. Then, you won’t have to wait until each spring to be able to afford something for yourself.” Read on for seven smart things you can do with your tax refund this year.

1. Plan for the unexpected. “Receiving a tax refund only happens once a year, if not less often, and it can be an opportunity for you to build a solid foundation for your financial well-being,” Anastasio explains. “If you don’t have an emergency fund, starting a cash savings account tucked aside for a rainy day (ideally three to six months of your monthly expenses) is important for your future financial success.” Even more, Anastasio says that you shouldn’t get into the habit of expecting a refund every spring. “Tax reform passed in The Tax Cuts and Jobs Act of 2017, which had sweeping changes to the tax code that went into effect in 2018,” she notes. “This tax season, taxpayers across the country are learning how the new code impacts them and many might be blindsided to find they actually owe money this year. Tax laws change often, and you’re not guaranteed to receive a refund every year; becoming reliant on it could mean trouble for you in future years.”

2. Pay for what you bought already. Did you use your credit card to get enthusiastic about holiday shopping or recently splurge on a well-deserved dream purchase? One of the best things you can do with your tax refund is to pay for the shopping you already did. “If you have high-interest rate debt, you should pay it down as much as possible,” Anastasio instructs. “Whether you acquired debt through a large-unexpected expense or gradually over time, carrying a balance can be burdensome and expensive. Make a large lump sum payment with your refund and nip your interest expenses in the bud!” You’ll likely see a boost on your credit score by improving the debt utilization ratio, and the money you’ll save on interest will mean more funds for future purchases.

3. Learn new career skills. Investing in yourself can forging your financial future by easing a career transition, helping you earn a promotion, or even making it possible to start your dream side hustle or small business. “There are a variety of ways you can invest in yourself, but few more exciting than opportunities that can accelerate your career,” Anastasio agrees. “If you’ve been putting off starting your own business or rounding out your resume with a digital marketing class because of the cost involved, let your refund pay your way to boost your skills.”

4. Add to your retirement fund. “It might not feel glamorous, but one day you will thank yourself for thinking about the long-term,” Anastasio promises. “If the idea of maxing out your retirement account seems unattainable because of your budget for the rest of the year, consider using this cash infusion to pad your savings for the future.” While the time when you can cash in may seem a long way off, the longer before retirement you invest, the more time that money has to grow, so even small contributions earlier in life can grow significantly by the time you’re ready to leave the workforce.

5. Protect your loved ones. “Some people think that life insurance is something you only need when you’re older, but waiting puts your loved ones at risk — and it could cost you significantly more money in the long run,” cautions Anastasio. “If you have any debt, like a mortgage or student loans, or are married with a family, life insurance is absolutely necessary regardless of how young you may feel.” Use your refund wisely by buying a term policy that offers solid protection; Anastasio tells us that most are very affordable and can give you peace of mind if something unexpected were to happen to you.

6. Invest for fun. Want to stash money away but feel good about the state of your retirement account? Anastasio says you can use your refund to figure out if you’re a “bull or a bear” by trying your hand at investing in the stock market. “Try something like SoFi Active Investing, which is a no-fee way to easily buy and trade individual stocks,” she suggests. Robinhood, a free app without trading fees, is another easy-to-use option.

7. Treat yourself! According to Anastasio, you can have your cake and eat it too. “It’s possible to be responsible with your tax refund and also treat yourself,” she encourages. “Take a small percentage of your check to put the fun back in refund! Instead of treating yourself with the full refund, responsibly set aside 10 to 20 percent for something for yourself.” Whether you’ve been wanting a cool new pair of kicks, a spa day, or something else, there’s no time like the present to enjoy it.

RELATED: How to Break Down a Big Goal Into Something You Can Actually Achieve

(Photos via Getty)

My best friends mean the world to me, and though I wish I could give them the world, this year, I just want to get them gifts that are as special as our friendship. Whether it’s a personalized pendant, a cute skincare set, or the lip shade they simply can’t stop talking about, I want them to know just how much I care about their companionship! Thus, I’ve curated the ultimate list of gifts for best friends to help you gift your besties something they’ll truly love, especially if it comes from you. These gifts are so good, I really want them for myself, too.

Our 40 favorite gifts for best friends:

Scroll on to see the absolute best gifts for best friends to give in 2024!

Amazon

1. Scent Beauty by Sabrina Carpenter Cherry Baby Eau de Parfum

Leave it to Sabrina Carpenter to influence my list of gifts for best friends. Her "Cherry Baby" scent carries sultry notes of vanilla, peony, cherries, and chocolate, which is the perfect aroma for a night out with the girls.

Summer Fridays

2. Summer Fridays Lip Butter Balm

This lip balm is viral for a reason. Your besties' lips deserve all the instant moisture, color, and shine this tube provides. This brown sugar shade looks decadent AF, but you can also snag it in other fun 'flavors' like iced coffee and mint.

Urban Outfitters

3. Camp Snap Screen-Free Digital Camera

For the one that's always documenting the friend group's antics, they'll enjoy taking this unique, screen-free digicam on nights out, weekend trips, and cozy nights in! It captures film-style photos (without the time-consuming film photography process), and it can be used over and over again since it's rechargeable.

SeaVees

4. SeaVees Hayward Platform Shoes

Moccasin-style shoes are super popular this winter. I love how comfortable SeaVees' shoes are, so I might just have to share the love with my besties this holiday season... and snag a pair for myself so we can match, of course!

Dieux

5. Dieux Angel Face Cleanser + Moisturizer Bundle

Dieux is one of my go-to skincare brands for effective products that still take it easy on my sensitive skin. Their Baptism cleanser, part of this giftable duo, provides a nice clean without stripping any moisture from my skin. I also use their Instant Angel moisturizer religiously in the wintertime since things tend to get real dry. I'd say you can confidently gift this set to besties of any skin type.

Anthropologie

6. By Anthropologie Monogram Heart Locket Necklace

Personalized gifts will always feel special. Kick this gift idea up a notch by inserting a little pic of you and your BFF in the locket before wrapping and handing it over!

Urban Outfitters

7. Baggu Mini Nylon Shoulder Bag

I carry this Baggu bag just about everywhere I go. It's perfect for happy hours or dinners since it's small and not too much of a hassle to tow along, but don't let its size fool you: this baby can fit a lot. Your most stylish best friend will be wearing it the moment they open their gift!

Target

8. Jingle & Mingle 5 Days of Rosé Wine Set

You can never go wrong with rosé, baby! This gift set carries 5 personal-sized bottles of different varieties for them to sip on around the holidays.

Kulfi Beauty

9. Kulfi Beauty All Night Out Eye Set

This eye makeup set is complete with a bold eyeliner shade and a shimmery pot of eyeshadow. You get to choose the exact shades of each before purchasing, so this is truly one of the most fun personalized gift ideas. The set also comes with a funky pair of mismatched hair clips – so cute!

Dame

10. Dame Massage Oil Candle

This soothing candle melts down into a sweet-smelling massage oil that's easily dispensable, thanks to the pointed spout on the glass. This is a great gift for your single and partnered pals alike, whether they're using it to wind down themselves or for sexy time with their S.O.!

Life is Good

11. Life is Good 'I Deserve A Little Treat' Boxy Crusher Tee

Everyone deserves a little treat. Wrap up this awesome (and comfy!) tee alongside your bestie's favorite snack, sweet treat, or freshly-baked dessert to totally nail their gift this year!

Compartés

12. Compartés Pistachio Sea Salt Chocolate Truffles

These aesthetically-pleasing truffles could be the perfect sweet treat in question!

Nordstrom

13. OSEA Super Glow Body Set

I know anyone in my close friends circle would be happy to be gifted some nice skincare goodies. This luxe set from OSEA comes with a body wash, oil, and serum to keep skin looking and feeling happy!

Subscribe to our newsletter for even more holiday gift ideas!

Brit + Co may at times use affiliate links to promote products sold by others, but always offers genuine editorial recommendations.

Our favorite dancing queens (Meryl Streep included) might be returning to the big screen for a third encore of Mamma Mia! and we’re already rewatching the first two movie musicals in preparation.

In an interview with Deadline in May of 2023, Mamma Mia! franchise creator and producer Judy Craymer said a third movie musical is in "earliest stages." She also shared that she has come up with a way to bring Meryl Streep back again.

"I don't want to over-egg it," she said of the unofficial news, "but I know there's a trilogy there…and I do think Meryl should come back, and if the script is right, she would, I think, because she really loved playing Donna."

"Of course I want to do it," Streep said during the 2024 Cannes Film Festival (via Deadline). Sounds promising to us!

Is Mamma Mia 3 happening?

Universal Pictures

Yes, Mamma Mia 3 is in its early planning stages! Christine Baranski just told The Hollywood Reporter that she's met with producer Judy Kramer, and that Kramer has plans for the third movie. "She gave me the narrative plotline of how it’s going to happen," Baranski says. "That’s all I can say! But, it’s not like, 'Oh, I wish it could happen!' Judy Kramer makes things happen. She made number two happen, and it was a phenomenal hit. I wouldn’t put it past Judy Kramer to get everybody back together."

Universal Pictures

A third installation was first mentioned way back in 2020, during a Collider interview with Mamma Mia! star Amanda Seyfried. Seyfried said she was on board — and at the time, she thought the rest of the star-studded cast would be too.

"Listen, every single person in that movie would say yes in a heartbeat because we want to hang out with each other," Seyfried told Collider at the time. "That's what we talked about last time, like did we ever think that we'd end up here again on an Island in Croatia?"

When will Mamma Mia 3 come out?

Universal Pictures

We don't have an official answer about when to expect this highly anticipated sequel. The project is in the "earliest stages," according to creator and producer, Judy Craymer. Cher also revealed to Entertainment Weekly that everyone is "talking about it," but she doesn't "know when they're going to do it."

Has casting information been shared about Mamma Mia 3?

Jonathan Prime/Universal Studios

While nothing's been made official, Amanda Seyfried just said something that made my heart skip a beat. She told ABC News she loves Sabrina Carpenter's music and dropped this admission: "If Sabrina Carpenter wants to play my daughter, I’ll make it happen."

But before she admitted that, the actress said something else that made me raise my eyebrows. "Everybody says it’s gonna happen, but I mean, I haven’t seen a script."

Cher is also eager to return to the beloved franchise and is rooting for Meryl to make an appearance again. "I keep saying, 'Meryl, you've got to come back,'" she said (via Entertainment Weekly). She also said she's told her, "'It'll be fun. You'll have a good time. You'll be able to sing.'"

I don't know what it'll take, but hope someone gets a script in Amanda Seyfried, Cher, and Meryl Streep's hands ASAP!

What is the first Mamma Mia about?

Universal Pictures

The first film follows Donna (Streep) and Sophie (Seyfried) as mother and daughter living on a remote Greek island. When Sophie is about to marry Sky (Dominic Cooper), she sets out to learn who her real father is after discovering it could be one of three men (played by Pierce Brosnan, Stellan Skarsgard, and Colin Firth).

Who does the second Mamma Mia follow?

Universal Pictures / NBCUniversal

Mamma Mia 2takes viewers back to 1979, where young Donna (Lily James) embarks on a series of adventures throughout Europe following her Oxford University graduation. On her journeys, she makes the acquaintances of Harry, Bill and Sam – the latter whom she falls in love with. In the present day, pregnant Sophie dreams of renovating a taverna while reuniting with her mother's old friends and boyfriends on a Greek island island.

TBH, we’re pretty happy that Mamma Mia! is far from over, and we can’t wait to see what the franchise has in store for us next. Stay updated on all the latest entertainment news with Brit + Co.

This post has been updated.

There's nothing ~normal~ about how much we love Normal People's Paul Mescal & Daisy Edgar-Jones. While it turns out we're not getting a Normal People season 2 (yet), the two actors are starring in some of 2024's biggest blockbusters (Twisters and Gladiator II, namely), and we've been soaking up their presences ever since.

Paul recently exhibited his ongoing friendship with Daisy at the Gladiator II premiere in Los Angeles. While he approached Brittany Broski on the red carpet for an interview, he recognized her from her recent 'Royal Court' interview with Daisy:

"You were with Daisy!" he chimed in excitingly. We just love this power duo!

Enda Bowe/Hulu

Daisy Edgar-Jones also revealed that she's remained incredibly close to Paul Mescal after their time on Hulu's Normal People. "Paul is one of my lifetime best friends," she says. "He’s an incredibly grounded person and I am too, I think, so it’s nice to be able to have those touchstones and those people you can laugh about it with and be lighthearted with. We met when I was 20 and Paul was 22; I’m so excited to see where we’ll be at 32, 42, and what life will bring us."

But the coolest thing is that not only is Normal People special for Paul and Daisy, but they've also been able to see the effect of the show on its fans.

"The thing I love people saying the most is, 'It made me contact my ex,'" Daisy continues. "Especially when much older people say, 'I just wanted to reach out to the person I was with when I was 17 just to say you were a big part of my history and thanks for being part of who I am, the tapestry of my life.' And that I really love, because I’m a massive romantic."

Daisy recently revealed they bonded over their training for Twisters and Gladiator II.

"I did running lessons — isn’t that crazy?" she told Variety. "Actually, Paul [Mescal] and I were laughing about it, because he was training for 'Gladiator II' and I was training for 'Twisters,' and obviously he had to be huge and I was like, 'Don’t worry, I’m going to be right up there with you.'"

Let us know your favorite Normal People moment in the comments and check out 5 Leading Ladies We'd Love To See In A Paul Mescal Rom-Com.

This post has been updated with additional reporting by Meredith Holser.