If you are one of the lucky ones that get a tax refund this year, you may be making plans on how you will spend that money. It is always nice to get a chunk of change rather than paying the IRS for money they think you owe them. There are some ways that are smarter when it comes to spending your tax refund than others. Mark Dicus & Company is here to share some ideas that may help you make the most out of your tax refund this year.
Get Out of Debt!
Sometimes, there are situations that leave you going into debt for one reason or another. When you get a lump sum of money from the IRS, it can be best used to get rid of high interest debt. This could include credit cards, high-interest loans or other lines of credit that you have open. Paying these off will help you achieve financial security and lower your monthly bills. Who doesn’t want some financial freedom?
Build a Savings Account
It is always wise to have an emergency fund that is there in case you need it. Having a savings account that will help you cover your monthly debt should you get into a bind will be a lifesaver. If you don’t have an emergency fund, this could be a good opportunity to give yourself that peace of mind. You never know what is lurking around the corner. It is always best to be prepared.
Save for a House
It is incredibly difficult, if not impossible, to buy your own house without a down payment. If you don’t have any cash put away for a down payment on a house, this is a good way to get one started. If you already have one that you’re working on, keep it building with your tax refund this year. Owning your own home is a great investment for anyone.
Increase Retirement Savings
Planning for later in life is always a good way to spend extra money as well. Padding your retirement will be something that may seem like a sacrifice right now, but it will pay off in the end. Whether you are increasing your workplace contribution or are investing it somewhere else like an IRA, retirement is an important time to plan for financially.
Start a College Fund
If you’re thinking of going to college at some point, having the money to pay for it rather than taking out loans will always be ideal. This is a great time to get a college fund going for yourself or for your children.
Tax Filing, Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you’re looking for help in filing your taxes, you can turn to Mark Dicus & Company to help you plan for an prepare your taxes. We have the experience needed to answer any questions that you may have regarding your taxes. Call us today!