It’s that time of year….
Income tax returns will be in the mail or in our accounts very soon. Make sure to spend it wisely so that it can put you ahead in a few ways for the months and years to come. Below, I have listed 5 good ways to spend your upcoming income tax refund.
1. Start or add to your Emergency fund. We all need to put something away for a rainy day. Trust me, rainy days will come. It’s good to have funds available when an unexpected event arises, such as car or home repairs, or even the loss of a job.
2. Pay off debts. Especially high interest debt, such as credit cards or any high interest loans. Paying off high interest debt is extremely difficult when you are only making the minimum payment. This is because the majority of your payment is paying off interest and only a small percentage of it is actually paying down the principal payment.
3.Open Retirement Accounts. Open an IRA(individual retirement account) or add to an existing one. Max out on your annual contribution if possible. This will help keep you on track with your retirement goals.
4. Invest in the stock market. There is a wide variety of investments that you could invest in to grow your funds. Make sure to do plenty of research prior to investing.
5. Give! This is the most important tip. Give to your local church and/or organizations that speak to your heart. It is more blessed to give than to receive. Acts 20:35
When you receive your refund this year, implement 1,2 or all of the tips below. You will thank yourself later!
“Always plan ahead. It wasn’t raining when Noah built the ark.” ― Richard Cushing