Tax Season is upon us and everyone is scrambling to their accounts to get those stressful taxes done. But that isn’t were it ends, some people are lucky enough to get a significant sum of money back from their income tax returns, which may burn a hole in their pockets as it tempts them to spend it. It is unfound money per say, so it is much easier for someone to just go and spend it on things that aren’t really a necessity. So what should you do with it? Well it all really matters on your lifestyle and your financial situation. Ask yourself what have you been meaning to take care of, but really didn’t have the funds to do it. Do you need it to pay off some high interest credit cards or can you use it to fix up some odds and end around the house? It all depends on what is most beneficial to you. If you still don’t have a clue what to do with that unfound cash, here are a few suggestions.
5 Great Ways To Use Your Income Tax Refund
1. Credit Cards / Bills – This is the first thing I would look into. It doesn’t mean you have to pay the bill off completely, use as much as you can to lower your balance. This will not only help you save money on interest, it will also help you to pay your debt off faster and lower your monthly payments.
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2. Education – If you have children, this is a great way to start a college fund. Open a decent interest earning account and deposit your tax refund and continually contribute to it over time. If at all possible, you may even be able to set an nice amount aside from each years tax refund. It will definitely help take away some of the stress when the time comes. The other alternative you can use it for, is going to back to school yourself. Maybe you can take a few computer classes or so forth to help you better your income and career.
3. Home Renovations / Repairs – Homeowners all over know it isn’t easy to keep up with your home, and that it isn’t cheap either. Are there some odds and ends that needed to be repaired or does your home need some updating? Well your tax refund would be a perfect way to finally get it done.
4. Auto Repairs / Purchases – Have you taken your car for service and were told that you need some additional repairs that you just couldn’t afford to have done at the time, or is it just time to move on from your old junker and buy a new vehicle? Well here is a perfect way to finally get those costly repairs done or put a decent down payment on a new or used vehicle.
5. Vacation, Vacation, Vacation – This is going to probably be the most appealing on the list for most people, especially since it is a choice that you can really enjoy yourself from, not like taking care of some of the things mentioned above. Not saying it isn’t important as well, since we all need a vacation from time to time. Especially after busting our humps all year round at our jobs and our homes, your body and mind need it. It also doesn’t mean you have to go to Tahiti or some exotic place either, just a nice trip away with some different scenery will do the trick. Even if it the trip is for the weekend, you will see it can do wonders for your body.
So there you have it, some great ways to spend that income tax return and reap some benefits out of it. Because if your not going to use it on something beneficial, you might as well let the government keep it.