Now that tax season is fully underway, you may be thinking about what you want to do with your tax return when it comes in. For some, it might go right into a savings account. For others, it might be an opportunity to splurge on different items you’ve had your eye on. A healthy balance between the two, is looking into some wiser ways you can utilize your refund. If you’re waiting on your refund to come in, consider some of these great options to put it towards:
Contribute to Your Emergency Fund
You may have one already, and if you don’t, it might be a good time to consider starting one. An emergency fund is a great tool to have in case you encounter an unfortunate major expense that you wouldn’t regularly have the funding for. You can contribute to your emergency fund on a regular basis depending on your pay schedule. However, when your tax refund comes in, depending on the amount, you may be able to make a large contribution, and give yourself a better financial cushion in the event of an unexpected expense.
Invest in a Down Payment
You may be in the process of looking for a new home, or even a car. Both of these purchases are likely to require some sort of down payment, especially if you want your monthly payments reduced as much as possible…
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John J. Bowman Jr., Accountant 