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Smart Ways to Spend your Tax Refund

Posted on by Jennifer Booth

April is tax season and while some people are stressed about filing their taxes on time, others are eagerly anticipating their refund check.  If you are part of the latter group, we’ve got a few ideas for smart ways to spend your tax refund.

Here are a few ideas for your extra cash:

 

  • Pay Off Debt – If you have any consumer debt with a high interest rate such as a credit card, it may be a smart idea to pay it off. 

 

  • Start An Emergency Fund – With $1000 socked away for emergencies, you’ll feel a little less stressed when your washer breaks, you’ll have the money set aside for repair or replacement.

 

  • Set It Aside For Retirement – An IRA is the perfect place for your tax refund.  You can deposit up to $5500, $6500 if you are 50+.

 

  • Save For A Major Purchase – Dreaming of a new car or home?  Use your tax refund as seed money for a future purchase.

 

  • Prepay Christmas – Open a holiday club account with your tax refund and when December rolls around you can do some stress free shopping!

 

  • Invest In Your Child’s Future – Putting your tax refund check aside for your child’s college fund is a smart choice.

 

  • Invest in Your Future – If you have no debt, your kids are out of college and your retirement fund is already on its way, it may be time to dabble with stocks, bonds or mutual funds.

 

  • Invest in Your Home – There are tons of projects that you can tackle around your home that will not only increase your property’s value, they can enhance your quality of life.  Some updated landscaping, a fresh coat of paint or a programmable thermostat are a few great ideas.

 

  • Invest in Yourself – Use the money to join a gym or workout with a personal trainer.  Or maybe take a class or go back to school.

 

  • Give – Think of a cause you’d love to support and make a hefty donation.  Nothing beats the feeling of giving back to your community.

 

We hope you found the list inspiring! If you make the decision to save some of your refund and need help opening a new account, be sure to stop by or give Wallkill Valley Federal Savings & Loan a call.  If you want to review our savings account options, head to our website or click one of the links below.

https://wallkill.com/Personal-Banking/savings-accounts

https://wallkill.com/Personal-Banking/iras

https://wallkill.com/Personal-Banking/money-market-accounts

https://wallkill.com/Personal-Banking/certificates-of-deposit

 

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