Preparing to file your taxes may not be an enjoyable process; but if you are in the position to receive a refund, it makes it all worth it. If you are eligible to get a refund, you must remember that what you do with your tax refund could be as important to your financial situation as filing your taxes. Here are a few ideas that could prove to be smart ways to use your refund.
Pay off Debt
Using your refund to pay off debt is a tremendous way to get your financial situation back on track. Using the extra money to get ahead of monthly payments or paying credit cards debt is smart for your budget. This would be an especially good use of your refund if you are looking to pay off those high-interest credit cards. The more you pay off now, the more you’ll save from not having to pay high interest rates! It may seem like you are spending a lot of money at once, but you’ll save a lot more in the end.
Advance Your Career
Spending the extra money on a class that can help you learn a new skillset to advance your career can prove to be more lucrative than your initial refund amount. Not only could this give you the opportunity to receive more education to better yourself, but it could also give you an edge in your employment opportunities, especially if you hope to get a raise or promotion. It may take some money and time now, but a higher education would help increase your earning power in the long run, compared to what you would otherwise earn without the additional education.
Deposit Your Refund into an Emergency Fund
You can’t anticipate when an emergency will come up, so you must always have an emergency fund for when it does. Do you have one? If not, using your tax money might be a good place to start saving for one. You always want to be ready for the unexpected and having money in savings account could definitely tide you over until things get better. Starting or increasing your emergency fund is a great way to make sure you ready for the unexpected.
Save For Your Retirement Account
If there is one truth in life, it’s that we are getting older. In order to prepare for when you might no longer be able to work or to help ensure you can enjoy your retirement to the fullest, you should have a retirement fund. Prepare for your golden years by depositing funds into a retirement savings account that could help you pay your expenses and live comfortably once you no longer receive a steady income from you job.
At DRB Capital, we believe in wisely using and saving money. Regardless of how you decide to use your tax return, just make sure it benefits you and your future. If after you receive your refund, you are still short of money and are receiving structured settlement or annuity payments, call DRB Capital today and see how we can help. We can help you get your cash as soon as possible to help you take care of the situations that need to be dealt with.