Have you filed your taxes yet? If you’re planning to receive a refund, have you thought about how you would use it yet? When you get a nice refund check, it might be tempting to go shopping or spend it all on something you’ve been wanting, but we’ve found that in our family it’s best to be strategic and use it on something we need. Sure, we all want an awesome vacation, but wouldn’t it be more beneficial to roll that money into something your family can benefit from all year long?
Here’s seven ideas on how to use your tax refund this year on something your family needs.
Down Payment on a Used Car
If you find that your car is on it’s last leg and you’re pouring money into the maintenance of it, it might be time to put a down payment on a used car. You can check out websites like Drive Time to find great prices on used cars. (You can find a dealer here.) We bought a used van last year and we got a great deal on it. This time of year is a great time to look!
Emergency Fund Savings
An emergency fund is smart to have. It’s money you put away in case of emergency. Having one in a savings account that you don’t touch will give you peace of mind. If you have a medical need or maintenance emergency on your house, it’s always better to use the money you have instead of putting it on credit card.
If you’re planning to put a new roof on your house, or if you need new windows, being able to use your tax refund on an expensive project will help lessen the shock of the expense.
Pay Off Debt
Do you have credit card debt? Using your tax refund to pay that down is a great way to reduce your debt. I realize this isn’t a fun way to use your refund, but it will make a huge difference in your timeline of paying off that debt!
Add To Your Retirement Fund
You can maximize your return when you apply it to your retirement fund. Your refund will be multiplied in the future when you place it in a fund that will yield a high return.
Buy Life Insurance
If something would happen to you, would your family be taken care of? Life Insurance is really inexpensive if you’re healthy and young(er). Investing in life insurance is a great value especially if your family ends up needing it someday.
Invest in Your Career
Do you want to quit your job? Getting back to school can help you better your position in the career you’re in, or a career you want to move to. There’s no better investment than one that invests in you!
Using your tax refund on something you need will be a gift to your family’s future. While we always use it for savings, we do take a little bit and go out to dinner. It’s nice to have a little bit of fun with your refund, especially when you know the majority of it will be building your future.
This is a sponsored conversation written by me on behalf of DriveTime. The opinions and text are all mine.