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Did you take care of your 2016 taxes yet? Are you expecting a refund? If so, have you thought about what you were going to do with the extra chunk-of-change? I’m sure there are a couple of things you already have in mind! But without trying to wreck your dreams of running off to an island where nobody can find you, I’m going to give you some responsible advice!
Slice the Debt: The first and foremost thing you should with your tax refund is payoff any high interest debt you may have. A popular debt with high interest is something like your credit card. Take a nice slice out of your debt by paying a chunk of it off.
The Prepper: Remember when I talked about being a “Financial-Prepper” in one of my previous letters? Always be prepared for a financial emergency! You never know when you may need the money. Add your tax refund to your emergency savings!
The Kids: In today’s day-and-age without that “piece of paper” or some sort of degree, it can be quite difficult to find a job; I can only imagine where the bar may be set for today’s generation. Save that tax refund and put it away to help pay for college tuition.
Flip or Flop: Isn’t that just a great show? I think it’s fascinating to see how they can turn an old problematic junk of a house into a beautiful home. Now I’m not telling you to get the sledge hammer out and start demoing the house, but if the walls could use a fresh coat of paint or its time for a new washer and dryer, go for it and splurge a little.
Fund it: You can use your tax refund to fund your investment. It’s as simple as that. You can invest your money into your 401k, IRA or insurance policy. You can also use the refund to purchase a life insurance policy if you don’t have an existing one already, it’s crucial for anyone who has a spouse and or dependents.
These are some great options to think about when you are considering what to do with your tax refund. However, I do implore you think about the needs versus the wants. The smartest move you could make is to first; take a slice of high interest debt off if you have it. If you have a saving’s emergency add to it, and if you don’t have life insurance already, well, it’s time to get it.