Tax Refunds Are On Their Way! Be Sure To Use Yours Wisely With These Tips!

April 14, 2016

Use your tax refund wisely with these tips!

Tax season is over! You’ve submitted your income taxes, and you’re free from your W-2s and 1099s for another year. As your tax return is processed, it’s time for you to start thinking about your tax refund. The possibilities are endless when it comes to using the extra cash. However, before you spend that tax refund on a new pair of shoes or extravagant night out, check out these smart ways you can make the most of your extra cash.

Open an Emergency Savings Fund.

Sometimes life happens, and you’re left with unexpected expenses. From a burst pipe to a flat tire, there are lots of unexpected costs that can add up. Unless you have an emergency savings fund for rainy days, you may get yourself into trouble. Use your tax refund wisely and set up an emergency savings fund. The more you have in savings, the greater the buffer you have for unexpected costs.

Invest in Your Future.

While retirement may not be at the forefront of your priorities, it is important to start thinking about your retirement early. The earlier you start, the better. Consider using your tax refund for your retirement fund. Whether you decide to contribute to your 401 K or an IRA account, be sure to start saving. Plus, you may event get a tax break on your 2017 taxes from your contribution.

Update Your Home.

When you make home improvements, you increase the value of your home. Use your tax refund to make necessary updates to your house. Not only will it help to improve your quality of life, but it will also increase your home equity. It’s a win-win.

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