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How to: Make The Most of Your Tax Refund

How to Make The Most of Your Tax Refund

Here are 7 smart ways to spend your tax refund money wisely!

If you’re expecting a tax refund this year, you may need a solid plan for your money. After all, getting a lump sum of money is a great opportunity for people to waste their money on needless accessories.

Before you let your tax refund burn a hole in your pocket, remember that the government isn’t sending you a bonus check, but rather money that has been yours all along.

Don’t get caught treating your refund check any differently than you’d treat your weekly or monthly paycheck!

Here are a handful of top priorities for your tax refund:

  1. Start or increase an emergency fund – From car repairs to a broken kitchen appliance, an emergency fund is there when you need extra cash – immediately.
  2. Pay off high-interest debt – Eliminate any high-interest debt that you’re carrying. Put your refund to work by starting your debt elimination program of choice, paying off payday loans, title loans, student or car loans.
  3. Buy something you need – Perhaps you need a winter coat or important dental work – take care of essentials if the refund can cover the cost.
  4. Start itemized saving accounts – Make a budget and break your refund into pieces, each of which plants the seeds in your bank account for important future purchases. You may decide to put your refund towards specific savings goals.
  5. Refinances your mortgage or make home improvements – Whether you want to refinance your mortgage or update to energy-efficient appliances, your home is a great place to put your refund.
  6. Donate to charitable causes – Contributing to charity is an excellent use of capital and provides a huge societal benefit.
  7. Spend it on something you want – If you’ve saved all year, it’s time to splurge a little! Treat yourself to a summer vacation or your family to a nice dinner!

If you’re smart, you can put it to work for you and improve your financial situation! You can even treat yourself without blowing it all on a huge, unnecessary splurge!

For the financial protection that you deserve in Renton, Washington, contact Humble & Davenport Insurance to get started on your insurance policies.