Working Americans will get ‘very large refunds’ of up to $2,000/household, says Scott Bessent. And they’re coming soon. Will you spend or save it?

Bessent said that Trump has fought harder than anyone for his signature initiatives in the One Big Beautiful Bill, pointing to provisions such as no tax on tips, no tax on overtime and auto deductibility (1).

“The bill was passed in July. Working Americans didn’t change their withholding, so they’re going to be getting very large refunds in the first quarter. So I think we’re going to see $100 to $150 billion of refunds, which could be between $1,000 and $2,000 per household.”

After that, once withholding levels adjust, workers could see what he described as a “real increase” in their wages.

The White House echoed that outlook. Press Secretary Karoline Leavitt said the upcoming refund season is projected to be the largest on record.

“Americans can also expect another boost to their bank accounts in the months ahead as 2026 tax refund season is upon us after the holidays and it's projected to be the largest ever,” Leavitt said during a Dec. 11 press briefing (2).

For many households, that raises an immediate question: What’s the smartest way to use a sudden cash infusion? Whether you’re thinking about shoring up your finances, preparing for uncertainty, or putting that extra money to work, here are a few ways Americans may consider investing their potential windfall.

‘The best thing to do,’ according to Warren Buffett

The U.S. stock market has been a powerful engine of wealth creation. Trump has pointed to that strength, recently saying, “the only thing that’s really going up big? It’s the stock market and your 401(k)s (3).”

The benchmark S&P 500 is up about 16% year to date and has gained roughly 86% over the past five years.

Of course, consistently picking winning stocks isn’t easy. That’s why legendary investor Warren Buffett argues that most people don’t need to pick individual companies at all to benefit from the stock market’s long-term growth.

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated (4).

This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active trading.

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.

Signing up for Acorns takes just minutes: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and if you sign up today with a recurring deposit, Acorns will add a $20 bonus to help you begin your investment journey.

Build wealth through US real estate

Beyond stocks, real estate has long been another cornerstone of wealth-building in America.

In fact, Buffett often points to real estate when explaining what a productive, income-generating asset looks like. In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check (5).”

Why? Because regardless of what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.

Real estate also offers a built-in hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.

Of course, you don’t need $25 billion — or even to buy a single property outright — to invest in real estate. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d want to purchase and then sit back as you start receiving any positive rental income distributions from your investment.

Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.

Let your cash hatch its own income

You don’t need a massive investment portfolio to start building wealth. Even your spare cash — such as a tax refund — can earn income, rather than sitting idle in a low-yield account.