Tax Day

 

Yep, it's Tax Day! Are any of you buried in paperwork trying to finish up your taxes? I didn't think so, you're organized. If you will receive a refund, start planning on how you will use it. Making some extra payments on a credit card or any debt is a good idea. Also, save some of the refund for summer vacation travel plans. The gas prices and food are two of the top things that will be higher this vacation season. The important thing is to use the tax refund wisely in whatever way fits your lifestyle.

Frugal Tip ->Tax Refund

If you will be receiving a refund from both your federal and state income taxes, plan now on what things are first priority like household/car repairs, paying down high interest credit cards, purchasing new appliance, or medical expenses. Try to be frugal and put one of those refund checks into your savings account or start one.

Tax Refund ->Save It

If you are expecting a tax refund, start thinking about what you will do with the money. The best plan for the refund is to save it. But, there may be some much-needed things that the refund can take care of that you have been putting off due to low cash flow. Here are a few uses for your refund:

--->Home repairs: gutters, painting, new appliances
--->New set of tires or any upkeep for the car
--->Family vacation: spring break, summer vacation, camp

Now is the time to give some thought to just how you will use the refund before it arrives in the mail or checking account. Keep in mind that the 'rainy day' fund comes in mighty handy in a pinch. Save for It!

3 Ways to Use Your Tax Refund

If you are going to be receiving a tax refund this year, here are 3 ways to use it.

1. Pay off/down credit cards: Take a look at your credit card statements especially those with high interest rates and plan to either pay off the card or at least pay down the balance. With the new credit card laws, some interest rates are much higher. This may make paying off the cards even longer so put your refund to work on the balances.

2. Home improvements: Use the refund to make home improvements that you may have been putting off because of a tight budget. Give your A/C unit a checkup before the summer heat take holds. Update your bed and bath with new accessories. Add some curb appeal to your home with fresh mulch, pine straw, flowers, and shrubs.

3. Simply Save It: Another good idea is to simply save your refund. Go ahead and deposit the refund into your savings account to shore up your emergency fund. You will be glad you did especially if an unexpected car repair is needed or an out-of-pocket medical expense arises.

These are just a few ways to use your tax refund when it arrives in the mail or is deposited to your bank account. As the saying goes, don't spend it all in one place.