5 Ways to Use Your Tax Refund

Tax refund next to piggy bank

With the tax deadline looming, you may have already received your refund or are eagerly awaiting it. While it’s tempting to treat a lump sum of cash like “free money” and blow it on clothes, vacation, or a tricked out top-of-the-line golf cart, look at it as a withdrawal from a savings account you didn’t know you had. It’s your money, after all! Here are some smart ways to use your tax refund:

Add it to your retirement account. If you’re like many Americans, you might be a little behind when it comes to retirement savings. You might be able to receive a tax deduction if you put the money toward a 401(k) or IRA.

Use it for home renovations. Need a new roof? Been thinking about hardwood flooring? Guest bathroom looking a little dingy? These types of renovations could add resale value to your home, which is a great use of your money.

Pay down debt. Get rid of a big chunk of high-interest credit card debt. Make a big payment on your student loans. Any debt you have that carries a high interest rate should be eliminated as soon as possible!

Use it for a down payment. Interest rates add up, so a tax refund could be a big help toward accumulating the cash needed to buy a new home.

Start (or add to) a rainy day fund. If you’re relatively stable when it comes to paying bills and tackling debt, stash that cash away for emergencies. You’ll breathe a little easier knowing you’ve got a little cushion in the bank should anything disastrous happen.

If you think you might want to use your tax refund as a down payment, give us a call at 877.312.9033 and one of our awesome loan officers can talk you through your options! Now, go forth and make smart money decisions!

One response to “5 Ways to Use Your Tax Refund”

  1. Gus Andren says:

    Very good site, thank you so much for your effort in writing this post.