With tax season winding down, there's a good chance you have a bit of extra cash burning a hole in your pocket. In fact, the IRS says the average tax refund this year will be above $3,000.
You can use that refund money on any number of things, of course, but one good option is to spend at least some of it on a trip. Where you go and for how long will obviously depend on the amount you got back for your refund. But here are five ways you can use it to fund some traveling this year.
Spend Your Tax Refund on Travel In These 5 Ways In 2020
1. Head Overseas
If you've already committed to using all or most of your refund on travel and you do happen to get back something in that $3,000 range, there is good news—you can afford to take a trip to just about anywhere in the world.
If that's the case, considering using your windfall to take a trip overseas, even if it's your first time.
There are plenty of options, even within different continents. For example, you could spend an entire vacation in large European cities such as London or Paris, or you could divvy up your time and hop from city to city.
The same could be said about South America. You could definitely have a good time with an extended stay in Rio de Janeiro or Buenos Aires, but you could also have fun hopping around other countries as well, such as Colombia, Chile or Ecuador.
It will really come down to your vacationing style, but rest assured that your hefty refund should be enough to handle the bill.
2. Keep It Close but Luxurious
Even if you receive a sizable refund, you're not obligated to head out of the country. Another option is to keep your trip close to home but spend a little more than you normally would on luxury amenities such as a larger hotel room or an all-inclusive package.
At the same time, luxury travel doesn't always mean staying in a luxury hotel chain. Instead you can concentrate your time and money on more luxurious experiences, such as top restaurants, hotels that pay attention to detail, or other unique local excursions.
Put another way, if you're able to keep your actual travel and/or airfare expenses down, you can use that extra money to spend on higher end experiences in whichever destination it is you choose.
3. Take an Outdoorsy Trip
Traveling doesn't always mean staying on a beach or visiting a historic city. Some like to spend their travel time close to nature, whether it's a fishing trip, a hiking/rock climbing vacation, or a mountain biking getaway.
If being near natural settings is more your thing, consider a log cabin vacation. You can book a cabin vacation on either coast and everywhere in between, and many locations feature scenic views and overall serenity.
You can also tailor your experience based on who you're traveling with. If you're heading out with the family, there are many cabin resorts that have activities targeting kids. There are also more romantic settings for couples, or more laid-back locations for larger groups such as bachelor or bachelorette parties.
4. Build a Trip Around an Experience
There have been scientific studies that show that experiences make people happier than physical items. With that in mind, you might consider making a specific experience the focal point of your trip.
For instance, you could travel to New York to take in that Broadway musical you've always wanted to see. You could attend a big-time music festival that you've always thought looks fun but you've never got around to checking out. Or you could see your favorite musical group or artist in a unique location, such as Red Rocks in Colorado.
In many cases, a good portion of the money you actually spend will be on the experience itself (tickets, etc.). You may consider spending a bit more on good seats or a VIP experience while also cutting back on potential hotel costs.
5. Make the Most of Your Budget
While the average refund this year may be roughly $3,000, not everybody will come away with that much. Even if you don't, there are a number of places you could go with a more limited budget.
This may involve driving to your destination rather than flying. Or it could be settling on a not-so-luxurious hotel if you don't plan on spending much time in your room anyway. Finally, it might mean spending a good portion of your cash on experiences and sightseeing while also limiting the amount you spend on fancy restaurants.
With a little extra scratch on hand thanks to your tax refund, a vacation is always a good option. After all, it could lead to an experience that you'll remember for the rest of your life. And no matter how much you receive or what your budget is, there are travel options available to you.
Kacey is a lifestyle blogger for The Drifter Collective, an eclectic lifestyle blog that expresses various forms of style through the influence of culture and the world around us. Kacey graduated with a degree in Communications while working for a lifestyle magazine. She has been able to fully embrace herself with the knowledge of nature, the power of exploring other locations and cultures, all while portraying her love for the world around her through her visually pleasing, culturally embracing and inspiring posts.