Tax Season is upon us! Every American knows that the beginning of the year also marks the expected hope for the windfall of the income tax return given back by the I.R.S. With the average refund being close to $2,000, it is smart to use this money wisely whether or not you are expecting a substantial income tax refund this year. Here are 5 ways you can make your precious dollars work for you.
- Pay Down Debt
If you carry some debts you have been trying to pay down or pay off, your tax refund is the perfect opportunity to do so. With the average annual interest rates for credit cards as well as personal loans roaming around fifteen percent, paying down your debt makes financial sense, and that may also have a positive impact on your credit report.
2. Open an Emergency Account
Let’s face it, it is not a matter of whether an emergency will happen, rather when it will happen. You may want to have some money stashed away when your car breaks down or there is an unexpected bill or expense that pops up. It makes a whole world of difference to be prepared for these emergencies when they arise as you could avoid the stress and panic associated with a lack of funds in hard times.
3. Fund Your Retirement Account
You may seriously want to consider investing in a retirement account if you haven’t done so already. Unfortunately, statistics have shown that about 30 percent of all working Americans haven’t invested anything for their retirement. This is a financial planning step everyone needs to be committed to—because we all grow older. So, your tax refund could be used to start contributing to an IRA right away.
4. Invest in Your Personal Affairs
Is there something you have always wanted to do in order to invest in yourself if only you had the money? It could be something contributing to your emotional, physical or intellectual goals. What about that degree or certification that you need to further your career? It may also be you need to write your will, file for an adoption or pay for life insurance. Whatever it is, think about what portion of your tax refund to bring this dream to reality.
5. Plan a Vacation
Once you have sorted out your financial situation by ensuring you can cover your bills, and that you have invested some money, secured an emergency account, a vacation could be a nice escape for you and your family. As long as you establish a sensible budget, you can enjoy a relaxing and stress-free vacation!
In case of doubt, do not hesitate to call Wendy’s Signature Service to receive the knowledgeable service to accompany you through the notarization process.