Monday, April 15, 2013

Tax Refund - What Will You Do With Yours?

Today is Tax Day and if you are one of the lucky ones who expects to receive a refund here are a few ways to spend that refund wisely.

Pay Down Debt
Credit cards, Vehicle Loans and Personal Loans
If you have high balances pay off or put money towards the highest interest rate first. If you have a lower balance pay that one off first, so you won't have that payment anymore. Then snowball that payment toward the higher bills.

Medical bills
Accidents and medical emergencies happen and most insurances only pay 80% if you are lucky. If you aren't able to pay it off in full with your refund; call the doctor or hospital and ask for a payment plan. Most places are glad to actually have a client work with them and not have to go to a collections agency.

Buy Needed Items
Let's face it kids grow quickly. Check your family's clothing to see if they are in need of a larger size or just newer clothes to replace old or worn out clothes.

Getting your tax refund is the perfect time to stock up your pantry. Buying food with a longer shelf live will help your family if you fall on hard times in the future.

Make Home Repairs/Upgrades
Now is the time to make necessary repairs to your home's major systems such as your heating, cooling, water treatment, and septic systems. It's always a good idea to have those same systems maintained by a qualified professional each year.

Upgrades to your home
Another option is to make upgrades to your home. Updating an older bathroom or kitchen are great ways to raise your homes' value. Even purchasing a new, more energy efficient appliance will add value.

Save for Future Expenses
Build an Emergency Fund
I'm a strong believer in having an emergency fund. You never know when you could become sick and miss a week of work, lose your job all together, have a vehicle break down or a furnace go up. Having a stash of money put away to will help cover the costs of an emergency and give you a little piece of mind.

Put some of your tax refund away to pay for Christmas presents. Don't wait and use credit cards. Having the cash on hand will let you take advantage of great deals throughout the year.

If you have children or grand children consider putting some money aside for their college education. There are plenty of plans to help you save.

Put your refund where it can do the most good - now and in the long run. Spend it wisely.

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