4 Things You Can Do With Your Tax Return
It is that time of year. That time where we can file our taxes and hope to get a big tax return. I enjoy doing my taxes and getting that refund back as much as the next person, but what are you going to spend that return on, if you get one?
Here are some beneficial things you can do with that money.
1. Save your tax return.
This one is pretty self-explanatory. I know it's pretty hard to save up your money because you want to treat yourself to something nice and well deserved for working hard that previous year. Don't get me wrong, I have things that I want to buy, but I know they can wait. It's important to have a savings account for future beneficial purchases. We cannot predict the future, so you don't know if one day you'll need to take money out. You might get a flat tire, or your car needs some work done or maybe you need to make an emergency trip. That is where the saving comes along. It'll help you out.
2. Down payment on a house.
This is one primary reason for a savings account, it is for that huge down payment on your dream home. I am 30 years old and my fiance and I are still saving up for that huge down payment. It's tough to save that much money, but I know it is possible if we don't touch that savings account. Doesn't buying your dream home sound better than a bunch of clothes and shoes that we all know that is not going to last long. According to ValuePenguin, the average age for a person to purchase their first house is between the ages of 25-35. I am literally in the middle of that. I got 5 years to go. LOL!
What kind of house do you want to buy and if you are already a homeowner what sort of new amenities do you want to attach to your home?
3. Down payment on a car.
Some people aren't fortunate enough to own their very own car. I get it, cars can be a bit expensive nowadays. Well, with your tax return, it can help you towards getting a new car or just a simple used car.
As long as it works and gets you from point A to point B that is all that matters, am I right?
4. Paying off your credit cards and student loans.
Pay off your credit cards! You want to know why? It is very important to pay off your credit cards because you will stop paying that high interest. You can finally save money instead of using that money to pay interest fees. Your credit score will skyrocket!
Credit cards can cause stress when you start charging them a lot and only can afford to pay the minimum payment. Believe me, I was there. I was so stressed because my debt was beating me down. Once, I was able to structure my finances and get my debt in check, I quickly caught up and now I am not too stressed anymore.
I know it's good to have some credit cards open so your credit score can keep going up but don't max it out. We all want things, I know I do. And now I save up the money that I work for every day after every shift until I have enough to purchase what I want to get myself.