While tax season is usually dreaded, the silver lining for many people is the tax return check they will receive. While the amount ranges from small to large depending upon the person, any extra money is a welcomed blessing. Though it can be tempting to blow through that money, before making a rash decision as to where to spend it, take a careful look at your budget. Assess your financial means before determining whether the money should be saved or spent.
Here are 10 smart ways moms can spend their tax returns:
- Home Improvements
Many home improvement projects go on the back burner, for they tend to be costly. However, with your tax return, you have some additional unexpected funds that can cover the cost of the broken sprinkler system or leaking roof.
Or, use the money to make upgrades to your home. Smart upgrades can be as simple as new flooring or as fancy as a new home alarm system from http://homesecurity911.com/adt/Florida/F/Ft-Meyers/, each of which can offer you a higher return on investment.
While it might not seem fun, using your tax return to pay down your debt is a wise use for the money. Not only does debt hurt your credit score, but the longer it takes you to pay it off, the more interest you accrue, which means more money out of your pocket.
With bills, house payments, children, etc., savings can deplete quickly in households. However, it is important to financial stability that you have money set aside in savings. Should an unexpected expense arise, you will be happy you have money to cover it.
Consider using your tax return to beef up your retirement fund. Plus, if the fund is tax-deductible, it will help you with taxes for the next year.
- Home Mortgage
Sometimes paying down your mortgage is not as beneficial in terms of bang for your buck; however, if you plan on staying in your home for years to come, it might be a relief to pay less each month.
- College Fund
With the rising expense of college, putting your tax return towards a college fund can help your child get into a good school.
If you have a favorite charity, give them a portion of your tax return. Additionally, you will receive a tax deduction next year for your donation.
For anyone with a high-interest mortgage, using the money to refinance can save you money in the long run.
- Health Insurance
If your policy includes a Health Savings Account, it is a good idea to invest money into it, as you will receive a tax break the next year.
- Vacation Money
Lastly, it can be fun to spend your money on a family vacation to create great family memories.
Enjoy the money you receive, and spend it wherever it fits best.
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