Tax season is on the horizon and many of us may be getting a substantial refund. Our first instincts may be to use this chunk of change to go on vacation or buy something we’ve been eyeing for awhile. However, as much fun as this sounds, your refund might be the perfect opportunity for you to make a more responsible decision. Here are this year.
- Invest | This may seem like the obvious suggestion, but too often we live for the moment so often in our lives that we forget about the future. By investing your refund into a taxable account, you can start building a nest egg for your future.
- Retirement | To piggyback off of investing your money, consider investing your refund into your own retirement fund. It’s never too early to start adding to your 401k, Rot IRA, or traditional IRA.
- Manage Debt | Do you have outstanding credit card debt or student loan payments? It may not sound like the most fun way to spend your newly received cash, but in the long run you’ll be able to afford more in the future by working toward payoffs right now.
- Emergency Fun | If you don’t already have one, start an emergency fund or savings account. If you already have one, consider adding more to it. You can never be prepared for the worst, but you can make paying for emergencies more manageable if you start saving now.
- Review Your Insurance | Use your refund to purchase additional coverage outside of your standard policy such as flood, liability, or umbrella coverage. These supplemental insurance policies can help bridge the gap in case of an emergency.
Call Ameriagency for help on how to use your income tax refund at 615-209-9362.