Ready or not, tax season is here again! While most of us don’t look forward to this time of year, there is a bright side. You may be getting a refund.
When you find out that you will be getting money back, your instinct may be to start shopping for a big screen TV or another expensive purchase you have been waiting to make. But will any of these toys better your financial standing?
If you’re fortunate enough to receive a tax refund this year, consider putting it towards one of these ideas from Raccoon Valley Bank. These will benefit you and your family and put you on a good financial path for the rest of the year.
Make home improvements- Whether it is a few minor fixes or major projects, keeping your home updated will increase its value and can also prevent bigger problems down the road. This equals more cash for you if and/or when you decide to sell your home.
Make extra payments- Making extra payments on your mortgage, credit card debt and loans will allow you to pay them off sooner than expected. This means dollars saved on months of interest.
Put it away for your kids’ college education- We are all aware that college tuition is expensive and only seems to be going up. If your other financial responsibilities are covered, consider plugging the extra money into an education savings account.
Build your emergency fund- Your emergency fund should have a minimum of three months’ worth of living expenses in it. If you have had to dip into your emergency fund lately, this is the time to start rebuilding it.
Do some good- Consider donating your extra money to a non-profit organization. You will be helping those in your community and it will probably make you feel good too!
Reward yourself a little bit- You don’t have to be all work and no play. Treat yourself or your family to a fun treat!
Which of these ideas would benefit you most? When deciding what to do with your tax refund, be mindful that you are making a decision that affects the financial future of you and your family. If you are looking for help managing your finances now or later on, stop by Raccoon Valley Bank to talk with our staff.