How to Invest Your Tax Return and Make an Impact
It’s Tax Season, baby!! You might have just received your return in the mail, or maybe you’re waiting in anticipation for it to arrive, but have you considered what you want to do with it?
Surprisingly, (or not, depending on who you ask), the number one thing that Americans report they’ll do with their tax return is save it. See, I was expecting the number one thing would be to go blow it on a new Playstation or a vacation! The fourth most common action that Americans take with their tax return is to invest it. But, where are they investing it?
If you’re considering investing your tax return, why not invest in a local, small business? There are many reasons to consider local investing, the primary one being the potential to earn a return, but there are so many other tangible benefits to you and to your community. Read on to learn more!
*Disclaimer: This is not investment advice and should be used for educational purposes only. Investing is inherently risky, and investors should be prepared to lose some or all of their investment.
How do you invest in local businesses?
While you could go through the hassle of becoming a private equity investor in a business in your community and drop a wad of cash on a potentially risky venture, you can put all the leg work of selecting, vetting, and dealing with the repayments on someone else - like us!
Honeycomb Credit is a crowdfunding platform for small business loans. It’s sort of like Kickstarter, except you get paid back for your investment into a business’s campaign in cash money.
Investing in a local business has the potential for a return on your investment
When you invest in a local business on Honeycomb, over the repayment period you’ll receive your investment back plus interest - giving you a return! Interest rates on Honeycomb range from 5-13%, with the interest rate being calculated based on the risk involved of the business defaulting on their loan.
Investing in a local business is investing in something tangible
Sure, investing in stocks and bonds and NFTs is nice, but wouldn’t it also be cool to be able to walk down the street to see the coffee shop you invested in?
When you invest in a small, local business, you’re saying “yes” to an entrepreneur’s dream - a real person, not some faceless corporation. You’re helping them create jobs in your community and build a place to be proud of in your neighborhood. You can’t shake an NFT’s hand, after all. (Well, maybe one day, who knows.)
You can make an impact beyond your wallet by investing in a local business
A common investing trend these days is seeking out places to invest that also align with your personal values - this is known as impact investing. On Honeycomb, you can find businesses that are Black-owned, woman-owned, LGBTQ+-owned, veteran-owned, and so much more. These kinds of entrepreneurs are sadly often shut out of traditional financial institutions when they seek out a loan, so you can be the difference for them and help them grow their businesses!
Use your tax return to earn yourself a return - and do good in your community!
Make that tax return work for you by investing it in a local business today. Check out live campaigns funding on Honeycomb now!