5 Financial Moves to Make With Your Tax Return
Your tax return is often one of the biggest chunks of money you’ll get in each year. Using it the right way is one of the most effective ways to get a great financial start. Try some of these great suggestions to help you make more financially responsible moves.
- Pay down debt. Do you have an outstanding loan that you’ve been struggling to meet the payments for every month? Are your credit cards becoming a problem? Using your tax return to pay down debt can help save you money in the long run.
- Invest it. Take your tax return and, instead of using it to splurge, turn it into future funds that can help you with retirement, sending a kid to college, or other major expenses. Try investing your funds to see how much they can grow in the coming years.
- Save at least a portion of it. Each year, decide how much of your tax return you’re going to commit to putting in savings–and then stick to it! Funnel that money into another account, whether a savings account or investment account. The sooner you get it into a different account, the better the odds that you won’t simply decide to spend it instead!
- Get a month ahead on your bills. Whether it’s your rent or mortgage or your other monthly bills, getting a month ahead will make it easier for you to handle emergencies that might crop up along the way. Go ahead and pay a month ahead, then make sure that you stick with keeping those payments a month in advance. This will give you a grace period if, at some point, things don’t go according to plan.
- Add it to your retirement account. Your tax refund is a great way to add to your retirement account. The younger you are, the more those funds will grow in the years between now and retirement, which will make life much easier once you leave the workforce behind.
Need more financial management tips or to know how to handle your tax refund with skill? Contact us today to learn more about how we can help.