Smart Ways to Use Your Tax Refund
Receiving your tax refund can be exciting. You’re getting back a portion of your hard-earned money from Uncle Sam. But now you have a big question to answer. What are you going to do with it? Try to refrain from spontaneous actions and purchases and consider these ideas on smart ways to use your tax refund.
Create or Boost Your Emergency Fund
Put more money into your emergency fund, even if it’s a modest amount. A lack of savings can leave you vulnerable to a job loss, medical emergency, or a major repair and can force you to seek out short-term loans or carry a large credit card balance. Work towards having enough stashed away to help pay for at least three months of expenses. Don’t have an emergency fund? Start one!
Pay Off Your Debt
Do you have some credit cards or loans that need to be paid off? Using your tax refund to pay off your debt will allow you to put more money in the bank every month once those minimum payments disappear from your list of bills.
Consider Saving For Your Future
Use your tax refund to make a contribution to your IRA. Saving for your retirement, no matter how far away it may be, is a smart way to plan for a comfortable future.
Invest in Yourself
Do you want to learn something new? Advance your career? Consider using your tax refund to take some online courses, get that certification you always wanted, or boost your skills for your resume. Bettering yourself is always a smart investment. The best advice comes from experts, so do your IRA a favor and set up an appointment with one of our experienced advisors.
Open a Savings Account
Are you planning on purchasing a home? Doing some big renovations on your house? Or maybe taking that long desired trip? Start a separate savings account where you can put away the money from your tax refund or whenever you have some extra cash. It’s an easy way to track how much you are saving up.
Make Home Improvements
If you live in an older home, consider using your tax refund towards updating things around the house that could in turn lower your energy bills, like replacing your windows and old appliances. If your kitchen or bathroom are in need of renovations, a remodeling project could improve the value of your home when it comes time to sell.
Everyone’s lifestyle is different, so put your tax refund to work in the way that benefits you the most.
To learn more information about how Pioneer can be a financial partner in helping you achieve your goals, call or visit one of our branch locations.
Pioneer and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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