5 Ideas for Your Tax Refund
Tax season is a crazy time when everyone tries to pull all their financial information together for the IRS. The bright side is we can possibly enjoy a tax refund when it’s all over. That refund can look like a fun chunk of money, but it’s important to consider some practical options for you to use that money wisely. Here are five smart ideas for how to utilize your tax refund.
Pay off debt. Once you get your tax refund, this is a great opportunity to put it towards any debt you may have. You could put it towards your student loans or your mortgage. You could even use it to pay off your credit card.
Add to your savings. If you don’t have any looming debt you’re worried about, then add your tax refund to your savings. If you don’t have an emergency fund, that is a great place to start. You could also think long-term like adding to a retirement account or even starting a college fund for your kids.
Invest the money. The stock market can seem overwhelming, but in the right hands, there is opportunity for growth. Talk with an experienced financial advisor and put that money to work for you by investing it. The market will ebb and flow over time, but you can still see benefits in the long run.
Complete a project. Is there any major need you have for your house or your car? Maybe you need a room painted, or your car needs new tires. Having this money available can help you make some necessary improvements that you may have been putting off.
Make a donation. If you have no other pressing financial needs, a great option to consider is donating to a charity that is important to you. This is a thoughtful way to serve others, and you can also benefit by receiving a tax deduction for next year.
Before you take that tax refund to the mall or on a cruise, stop and consider some of these other practical options. Splurging on something fun is great every now and then, but only if it’s done responsibly with your other financial needs in mind. If you have questions or need help managing your finances, call AMJ at 919-368-1877 today!
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