Tax refunds are fantastic because the amount you receive can vary considerably and range from a few hundred to a few thousand dollars. However most people rush to spend the money as they are so excited about this unexpected windfall but later regret it. There are many good ways to spend your refunds and you should consider the best ways first before splashing the cash around.
Upgrade Your Home or Make Necessary Repairs
If your home is in need of serious repairs then whatever tax refund you receive should go towards that. It could be minor repairs or major ones but these repairs could prove very useful in keeping your home in good condition.
The money could be used for general maintenance of the home too or if there are no repairs required at the moment, the money could be put away for such time. However, the refund could be put towards improving the home such as upgrading the doors or windows or installing new fixtures and fittings. Your refunds could be sizable too so consider spending it wisely on your home.
Set Up or Add To an Emergency Fund
Emergency funds are just so crucial for every household today and whether you have very little or a lot of money put away for a rainy day, it could all prove useful. However you can’t have too much in your emergency fund because you never know when you’re going to need extra cash or for what purpose. Knowing money is there for tough times can lift a weight from your shoulders and while it may sound like a boring way to use the tax refunds it’s actually pretty smart.see post from http://www.bankrate.com/finance/taxes/ways-not-to-spend-your-tax-refund-1.aspx
Pay Off Debts
Having debt looming is always worrying because you fear about a missed payment or the creditors knocking at the door. It’s stressful with debt and even if it’s only a few hundred or thousand dollars, you still worry deeply about it day-after-day.
However your tax refund could be used to put towards old debts. You could pay off many debts depending on the amount you owe and the amount you receive but it could help pay the debts off faster and improve your credit score at the same time. Again, paying off debt isn’t exactly an exciting way to spend your refund but in all honesty, it’s a smart way to spend the money.
Investments are something which many get the wrong idea about. You don’t have to invest all the money from tax refunds and you don’t have to go into the stock market either. You could invest money in a new family vehicle or use it as a down payment for a new home. You could even invest in yourself and the choices are endless. Of course you could invest in the stock market if you wanted to but it isn’t the only investment option available to you. There are many great ways to invest such as putting the money towards buying a new home.
Be Smart With Your Tax Refunds
None of the above four suggestions may sound appealing but they are really the best ways to spend your refunds. They are the smart options simply because you’re putting the money to good use rather than wasting it by spending it on luxury items you rarely need, want or use. Yes treating yourself is good and you should but in moderation. Spend your tax refund wisely.