With tax returns starting to come in for the season people are deciding what to do with that money. Some are thinking of using it for a vacation and others for a shopping spree, but many want to make that money go as far as it can. To put it towards something that is less in the moment and more about the long run. If you are one of these here are some ways to do just that.
Build Your Savings
Few Americans have real savings, meaning enough set aside to pay for all their household expenses for at least three months in case something happens to their income. Having that real savings can protect you from any unexpected expenses. A tax refund can be a great way to make a significant contribution to that savings and get it collecting interest.
About 80% of Americans are in debt of some kind and most of those will stay in debt for years paying the minimums on their debts while often adding other debts to the running total. Using your tax refund to eliminate your debt can be a great way to put yourself ahead. Most will go for the debt with the highest total, but the better choice is to take out the debt with the highest interest. These debts are the ones that will grow the fastest if left on minimums, so take the initiative and knock it out.
Invest in Yourself
We all have those things that we know would further our place in the world, whether it is a course that could help you get a job you really want or hiring someone to improve your business's website, it can be hard to find the money for things like that in your normal budget. Using the money from your tax return to better yourself is a fantastic way to get a little ahead in the world without having to find the money in your month to month paychecks.
Started to build shelving and never got around to finishing it? Got some of the materials to paint your home but other things got in the way? Planned to redo the kitchen but it ended up being a list of ideas on a legal pad in some drawer? Projects get started and stopped for a dozen different reasons but picking one project and putting a part of your tax refund towards finishing it can help set the mood for the rest of the year and eliminates one unfinished project in your home.
If you own a home, chances are that you want to do something that adds value to your home. Redo your kitchen or bathroom, do an expansion or maybe a pool. Something that takes your home a step up and will either add value for your living or resale using your tax return to add more than you pay in home value.
Whatever you do with your tax return make sure that you come out of it happy and having bettered your life in some way.
If you are burdened with high amounts of credit card debt and are struggling to make your payments, or you’re just not seeing your balances go down, call Timberline Financial today for a free financial analysis.
Our team of highly skilled professionals will evaluate your current situation to see if you may qualify for one of our debt relief programs. You don’t have to struggle with high-interest credit card debt any longer.