5 Tips for Managing Your Tax Refund
2016 Update: The government pushed back tax day this year to Monday April 18th! So now you have a few extra days to get your taxes together.
Tax Day is just over two weeks away. If you’re like many Americans, you’re waiting until April 14th to click Submit. However, to make sure everything is entered correctly (which will hopefully equate to a refund) we recommend getting out of procrastination mode.
What’s that? Your taxes are done? Great! Now comes the fun part… deciding what to do with your refund! Here are some suggestions that will definitely pay off in the long run:
- Pay down debt.
- Whether it’s student loans, credit cards or your car payment, using your tax refund to decrease your outstanding debt is a great way to improve your credit. Consider making payments on accounts with the highest interest rates for the best return on your investment.
- Use towards a home down payment.
- Planning to purchase a home in 2015? Consider using your tax refund towards your down payment. Meet with a Great Midwest Bank Loan Officer for a pre-approval before you start shopping.
- Start or increase your emergency fund.
- Open a Great Midwest Bank Savings Account and deposit your tax refund for a rainy day.
- Update your home.
- Need a new roof? Better curb appeal? Maybe a new air conditioner? Using your tax refund toward these purchases is a great idea. Especially if you are considering selling in 2015.
- Donate to charity.
- Not only will you be doing something great for your community, but you’ll also be able to deduct your charitable donation on next year’s taxes.
Though it’s good to be responsible with your savings, it’s also good to have a little fun. Make sure to take some of your tax refund and treat yourself for being such a savvy money planner! And remember, at Great Midwest Bank we can help you with your home mortgage, savings account and financial planning. We have the tools and resources to help you get the most out of your tax return.
Photo credit: JD Hancock / Foter / CC BY