Getting The Most From Your Tax Refund
Your annual tax refund can be easily be spent on a fancy weekend away, some new clothes or some extravagant purchase but don’t throw away your tax refund.
Think about it as a surprise gift of money that can kick-start your savings.
Here’s our tips to get the most from your tax refund:-
1. Pay Off High-Interest Debt
The best thing you can do with your tax refund is reduce or eliminate any high-interest debt that you’re carrying. Put your refund to work by paying off high interest loans such as credit card debt, car loans, debt consolidation loans and student loans.
2. Spend It On Something You Need
Are you having car trouble? Have you put off important dental work? You need to take care of these essentials, and once you collect your refund, you may be able to cover the cost.
3. Start a Savings Account
Start a savings account to kick-start the new financial year. Start by putting some of your refund into a savings account and have regular deductions from your pay go straight into your savings account. Watch your savings grow and start a healthy relationship with money.
4. Refinance Your Mortgage or Make Home Improvements
Make a surprise payment into your mortgage – every little bit counts and can save you thousands of dollars on interest over the term of the loan. Also consider refinancing your mortgage and shop around for a more competitive rate and offer. If you are happy with your mortgage, consider making home improvements. Do you need a new roof? Is your kitchen outdated? Do you need to paint your home? Do you need to landscape the garden? You can immediately increase the value of your property whilst making your home more comfortable.
5. Get That Business Up and Running
Have you been thinking about setting up a new business or taking your business to the next level. You can use your refund to get a new business up and running or you can invest futher in your business by being able to put on contract staff to help your business grow.
6. Donate to a cause close to our heart
When on a tight budget, making a charitable donation can slip down the list of priorities. Your refund provides you with an opportunity to give a little back. It certainly can help others in need and provide a community benefit. It also is tax deductible.
7. See a financial adviser
Most people think that you need a lot of money to seek financial advice. Your tax refund is an opportunity to see a financial adviser who can help you on the path to financial freedom.
If you do receive a tax refund, remember to spend a little on you, however, investing the rest will ensure your get the most form your tax refund.