Now that we are breathing a sigh of relief that tax season is over let’s talk about what to do with your tax refund. After the tough economic times we have experienced it feels good to have a little cash in our pockets, doesn’t it? It is important to explore your options and we can help. At BASC Expertise we offer an array of services that can help you make a decision that is appropriate for your personal situation.
Here are 8 Ways to Spend (or Save) Your Tax Refund:
- Take a trip: The last few years have been rough for many Americans, haven’t they? Maybe it’s time to relax, put your feet up and get away for a while. While a trip around the world may not be a fiscally responsible choice, you can take the family away for a long weekend or a week to refresh and renew.
- Down payment on a new car: Love the smell of a new car? We know you do! While a new car seems like a great way to spend your tax return, right? The better choice may be to pay cash for a used car or keep the one you have now especially if your current vehicle is paid off. A new car loses its value as soon as you drive it off the lot so ask yourself if it’s worth it.
- Save it: Depending on your situation the best (and we know most boring) choice is to save your money. Do you have an emergency fund? Do you know the air conditioner may need to be replaced this year? Need a new water heater or new roof? These are ways you can use your tax return money later in the year. You may also consider the different vehicles for savings such as a savings account, money market account and investments.
- Pay bills: We know, another boring choice, right? Think about how it would feel for the medical or credit card bill to be paid down. Remember that credit card that you got on no interest for one year? It’s due in a couple months. Avoid interest and fees and pay it off today.
- Repaying personal loans: Many of us have had to borrow money from friends and family to make ends meet in the last few years. Now might be the time to say thank you and pay off those loans.
- Home improvement: Is your kitchen a 1979 original? It might be time to remodel. You can save money on labor if you can do some of the work yourself putting the tax return money toward new appliances and cabinets, for example.
- College fund: Now may be a good time to start a college fund for your child or children. Call us to find out how you can incorporate tax savings into college savings.
- Shopping spree: Buying the item you have had your eye on for a long time is a great way to thank yourself, isn’t it? We recommend you set and keep a budget. Grabbing a shopping cart and filling it may seem like a great idea but probably not the best financial decision.
While these ideas may seem funny coming from your accountant, we’re only being realistic. After all, if you can’t spend it on fun stuff, why make it? We can’t wait to hear how you spent or saved you tax return! If you have questions or would like to discuss how we can help, please make an appointment. We are happy to help!
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