During this time of the year, your employer will give you your W-2, and then you take it to a tax professional or you choose file your taxes on your own. Even though a large chunk of extra income seems like a great opportunity to splurge on a new Jet Ski or pair of shoes; however, if you want to do something responsible with your Tax Return, there are numerous of ways of accomplishing that. Here are some ideas from AIS on how to make your refund take you the furthest:
- Pay off any credit card debt–
- This idea is the one that will save you the most money in the long-term, since you will be avoiding interest rates and penalties. Also, if you put your money towards your mounting debt, you will not have the temptation to acquire more debt through an increase in purchases.
- Make home improvements-
Look around your home. Do you need a new roof or an update on your plumbing? Could your home use new energy-saving appliances that will reduce your utility bills in the future? Home improvement projects can vastly increase the value of your property and make your home seem more luxurious at the same time.
- Set it aside as an emergency fund-
This is the least amount of instant gratification that you could possibly acquire with your tax refund; however, you’ll thank yourself in the future when plans go awry. Immediately move your tax refund from your checking account into your savings account and use it when life decides to throw an unsuspecting emergency at you.
Whatever you decide to do with your tax refund this year, make sure it’s a smart move for you, your future and/or your family; furthermore, if you do spend it, do something with it that’s memorable and leaves a lasting impact on yourself and not your debt.
The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and the language contained therein will govern such policy. No warranty or appropriateness for a specific purpose is expressed or implied.
