Many people have already received their refund checks or will be receiving them soon. Before you go blow your check on a new TV or vehicle—consider investing your money a little more wisely. Take the time to review a few tactics that will allow you to take that tax return and put it somewhere that will be to your benefit in the long-run. That new 60-inch LCD TV can probably wait.
1. Put the money into an emergency fund. Store your emergency fund in a money market or savings account so it’s easily accessible. It’s a good idea to have an emergency fund for those who are living paycheck to paycheck in case something were to happen and you come across some unexpected finances.
2. Take a crack at your debt and start paying more than the minimum payment on your next credit card bill. Lightening your load of debt will take some weight off of your shoulders and give you a little more breathing room.
3. Consider investing your money in extra insurance. Flood-insurance is a good idea for anybody that lives in a low- to medium risk area. You may even want to consider an umbrella policy that cover’s your home and auto from liability issues that may arise. You can contact any of our agents here at Community Insurance & Associates and talk to somebody about a flood or an umbrella insurance policy.
4. Start saving or prepay for a vacation. Think about the relief you will have not to receive a huge credit card bill after your next trip.
5. It may be a good idea to invest the money into your future. Going back to school or spending your tax return on continuing education credits can help you get ahead in your career. By investing in continuing education you will be a more likely candidate to receive a promotion and increase your earnings at work.
6. You now have the money to tackle those small home improvement projects that have been pushed aside all year. Something as simple as a new paint color on your walls can make a significant difference.
Remember, think about the best way to spend your tax return before you go blow it on something you don’t need. Investing that money in something useful is the best way to keep you financially stable. This doesn’t mean you can’t use a little bit of the money for yourself. Take some of your return and go spend it on a nice dinner at a new restaurant in your town. You work hard all year and still deserve to treat yourself to something special.