Our offices will be closing at noon on July 3rd and will reopen on Monday July 7th
Tax refund on the way? Use it to fortify your financial future.
If you are expecting a refund this year, you may be tempted to splurge on something not-so-practical. Before you do, take some time to think about ways to use your refund to bolster your financial health. We’ve put together a few ideas for you to consider:
- Start or increase your emergency fund: If you don’t already have at least six months of savings stashed away in case of an unforeseen financial emergency, use your tax refund to help build up your savings account.
- Eliminate or pay down high-interest debt: Paying off high-interest debt such as credit card balances, payday loans and debt consolidation loans with your refund is a smart move.
- Contribute to tax-sheltered accounts: Use your tax refund to top-up (or start) a Roth IRA or 529 college savings plan. You’ll compound dollars and interest for your future retirement or college tuition needs while scoring a tax deduction as well.
- Create a legacy: If you have always wanted to create your own foundation for giving back, use your tax deduction to get it started. You may even be able to use your new non-profit status to mitigate your tax bill for next year while doing good for others.
- Invest in yourself or your business: If you’ve taken care of savings and debts, consider enriching yourself by taking a class or purchasing a needed piece of equipment for your business.
These are just a few ways that you can fortify your financial future with your tax refund. Make a plan for using your money wisely this year.