How to Make the Most Out of Your Tax Refund

Monday, April 01 at 10:05 AM
Category: Personal Finance

Who else is seeing the words “shopping spree,” “vacation” or “new gadgets” pop into their head? If you’ve already done your taxes and are expecting a nice return, then this probably pertains to you. Wait one second though — we’d like to encourage you to take a night or two to sleep on it before deciding how to use your tax refund.

Here are some ideas to consider…

  • Build an emergency fund. You never know when a rainy day will sneak up on you. Having the funds available if and when that day comes can relieve a lot of worry and stress.
  • Put a down payment on a house. Home buying season is upon us! If you are looking into buying a new home, then your refund is a great resource to make a down payment.
  • Boost your retirement savings. Investing the money into your 401(k), IRA or another retirement savings plan is one of the smartest ways to use your refund. You’ll be thanking yourself later.
  • Start a college fund. With tuition constantly on the rise it’s never too early to start saving for your child’s future.
  • Pay off debt. Were you one of those people who made it a New Year’s resolution to pay off your credit cards and other debt? Well, here’s your chance.
  • Make some home improvements. Spring is here and you’ve likely created a laundry list of home repairs and projects you’d like to get a jump on. Your tax return is a great source of funds for purchasing all of the materials and goods you’ll need.

These are just a few suggestions, among many, to take into consideration. Maybe you are more desperate for a new wardrobe or a spring getaway. Either way, the important thing to remember is to determine how you can best invest your refund so it doesn’t go to waste.

The views of this article are for general information use only. Please contact and speak with a subject expert or your financial advisor when specific advice is needed.

Tags: Cash Management, Financial Education, Savings
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