Ready or not, tax season is here again! Get out your groans now. But then remember this: you may be getting a refund.
Your first thought may be to start looking at TVs or expensive things to buy. But will any of those better your financial situation? If you waste the money that you get back, you may as well not get any back in the first place.
If you’re fortunate enough to receive a tax refund this year, try these ideas from Sunset Bank. These will benefit you and your family and put you on a good financial path for the rest of the year.
Make home improvements- From minor fixes to major projects, keeping your home updated can increase your its value and prevent future problems. This means more cash for you if/when you decide to sell your home.
Make extra payments- Making extra payments on your mortgage, credit card debt or loans may not seem fun, but it will save you money down the road. By making extra payments, you will have your debt paid off sooner and save a bundle on interest. Those dollars saved can be used on something else in the future!
Put it away for your kids’ college education- It isn’t looking like rising college tuition prices will be stopping anytime soon. If your immediate financial responsibilities are covered, consider setting aside the extra money in an education savings account.
Contribute to your retirement fund- If you are looking at long-term goals, contributing to your retirement account is a good way to ensure that you have enough saved up to feel secure when you are done working.
Build your emergency fund- Your emergency fund should have a minimum of three months’ worth of living expenses in it. If you have had to dip into your emergency fund lately, this is the time to start rebuilding it.
Do some good- Whether it is part or all of your refund, consider donating to a non-profit organization in your community.
Reward yourself a little bit- You don’t have to be all work with no play. Treat yourself or your family to something fun!
Which of these ideas would benefit you most? When deciding what to do with your tax refund, be mindful that you are making a wise decision for the future of you and your family. If you are looking for help managing your finances now or later down the road, stop by Sunset Bank.