Hooray! You have received your tax returns, now what? Maybe you just can’t wait to get your hands on the latest gadget since last month, or wanted to book a Caribbean cruise with your hubby but don’t really know if it’s going to be worth it. Now listen to me and read this list first then opt to decide later.
Start an Emergency Fund
Unexpected expenses happen like car repairs and home improvements you can’t suspend, no doubt you will refer to your emergency fund right away. Now is the time to start or increase your savings. My husband and I make it a point to replenish whatever we’ve spent from the fund. Since we are newly weds, we spent money on minor home improvements recently without busting our budget. But there are definitely a lot of ways on how to boost your emergency funds too.
My husband called me the other day to just let me know he’s on the way to bank to pay the credit card balances. Who wouldn’t be proud of it! Though it may not be much, we just want to stay on track. You can also put your refund to higher interest debts like car loans. The sooner you can get rid of these payments, the more money you will have for other and more important things.
I manage my own savings account since I was 8. I went to the co-operative bank all by myself to deposit little cash that I earned from winning art contests and coins I saved from lunch. I owe this trait from my parents who pushed me and my siblings to save and reach our goals. I still have that unique smile when I look at how far I have gone. This is the most fun part because it helps us dreaming and save for it. Here are some ideas of what you might start saving for:
- A down payment for a new home
- A family vacation without maximizing your credit card limit
- A much-needed remodel or repair for your home
- Being able to pay for your next car in CASH!
- Tuition for our children
My husband and I prefer to open separate savings account specifically for each item we are saving for. It also helps you to keep track your spending. Your refund is a great resource to jumpstart any of your goals.
Go and have some fun!
Reward yourself and don’t feel bad on spending a fraction of your tax refund on a well-deserved vacation with your loved ones or buy a sewing machine to start a new hobby! It’s not only fun, it can also enhance your life and happiness.
Invest in the future
Some of us doesn’t enjoy the idea of investing because you can’t actually feel it. Well now that you have tried and accomplished all four ways, maybe it’s about time to invest in the future.
“If your current finances are on solid grounds, then you may want to go ahead and invest that money. It would be an easy way to bump up retirement savings. Maxing out your IRA contributions can be an incredibly smart move that your future self would thank you for.” TurboTax advices.
How are you spending your tax refund this year?
If you have financial and tax questions or you want to establish an awesome relationship with a pro tax services by Palermo & Beetz, email them at firstname.lastname@example.org or call (954) 443 – 0977. LIKE their page on Facebook.