It’s that time again – tax return season! If you’re wondering how to make the most of your refund, we’ve got some pointers on how to use that extra dough.
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Destroy Debt: Demolishing debt is always a solid way to use tax money. We recommend focusing on high-interest debt if you have multiple things to pay off. This can help you free up your finances and pay less interest in the long term.
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Upgrade Your Home: If you're a homeowner, consider using your tax refund for home improvements or repairs. In addition to making your home more enjoyable, you’ll increase its value in the process.
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Invest in Your Future: Use your refund to further your education – sign up for a course, attend a workshop, or invest in professional certifications. This can open new opportunities for you professionally and boost your potential earnings.
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Enhance Your Emergency Fund: Boost your emergency fund with your tax refund to ensure you're prepared for any unexpected expenses that may come your way. Ideally, you want to have enough to cover three to six months of living expenses. However, having any financial padding is better than none, so don’t sweat it if you’re still working towards this goal.
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Bump Your Retirement Savings: Consider contributing your tax money to your retirement account. Saving early gives your money more time to grow which means you don’t have to work as hard to build your balance.
Remember, there’s no “right way” to spend your tax refund – it's based on personal factors and needs. The key is to strike a balance between treating yourself and making smart financial decisions that will benefit you long term.
Looking for advice on planning for your financial future? Connect with a financial advisor via our Sun Lifetime Financial Advisors (SLFA) program today!
