It’s that time of year again where taxpayers receive tax refunds from the government after diligently preparing their taxes. A tax refund depends on your filing status, income, deductions, and credits; therefore, leaving you with a varied spectrum amount you can earn back. You can easily estimate your tax return using an online tax calculator if you have not yet received your refund.
People often tend to spend a large chunk of their tax return, only to later question where it all went. That is why it is important to plan and budget your tax refund appropriately. Below you will find a few options on how you can wisely allocate your extra money.
Pay Off Student Loans
Student loans should be your top priority loan to pay off! Compared to all other loans, student loans will never be discharged even during bankruptcy. Not paying your student loans can lead to seized tax refunds and ruin your credit score. Putting a little extra money into paying off your student loans can go a long way.
Transfer A Portion Into Savings Account
To give yourself piece of mind put a portion into your savings account. This will be where emergency funds can be extracted if the unexpected occurs. Plan for the future and save yourself the stress by setting aside extra money. It’s always better to be prepared!
Set Aside Money For House Maintenance
Fixing your house is an ongoing process, but your largest investment! Why not fix your house with a little extra cash. There are plenty of ways you can help with the daily function of your home. You can fix plumbing, purchase new carpet, remodel the bathroom, and make small furniture purchases. In the end, your home investment will pay off in the future, so why not invest in it now?
Invest In Your Health
Don’t forget to take care of yourself! It’s important that you maintain a healthy lifestyle. A portion of your tax refund can give you the opportunity to join a gym or fitness class. Investing in your health can also refer to changing a health care plan, fixing your teeth, or purchasing super-food supplements.
You deserve to give yourself a reward! After a long year of hard work treat yourself when the opportunity is given to you. A simple get-a-way trip with a partner, romantic dinner, family trip, or spa day will allow you to recharge. It is important to remember that a portion should be set-aside for you to indulge. Work-life balance is key. Without balance, it will be difficult to move forward and fulfill long-term goals.
It’s easy to become tempted to spend your tax refund when you have not thought about where you would like to allocate your money. Fight the impulse to spend on unnecessary items or services. Before you make a purchase ask yourself if this is a “need” or “want” and if this is beneficial for your future. If you answered no, you know what the right decision is. You’re now ready to wisely spend your tax refund!
Visit your nearest CFSC Location for Tax Direct Deposit services. CFSC is a third-generation, family-owned check cashing company with 200+ locations nationwide. To learn more about our financial services, feel free to visit our website!