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Best Uses for Your Tax Return - Brett Fingerhut
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Best Uses for Your Tax Return by brettfingerhut | Mar 15, 2018 | Brett Fingerhut
It’s tax return time, and that means millions of Americans will receive a sizable check straight from the government. Many Americans spend this money right away, but others hang on to it, unsure of what to do. After all, we don’t often receive several hundred dollars with no strings attached (or bills to pay). If you are unsure of how to use your tax return, consider one of these options.
Pay Off Debt If you have any credit card debt or a loan with a high interest rate, take the opportunity to pay down this debt right away. Just make sure to pay it the way you want; paying toward principal will lower your future payments, but making future payments is smart if you think you may be strapped for cash in a few months. You should still continue to pay each month, regardless. If you don’t have high-interest debt, you can also apply your tax return to a low-interest loan, such as a mortgage or student loans. Any dent in your total amount of debt will result in less headaches down the line, so consider it a present to yourself.
Up Your Savings Everyone should have an emergency fund for the unexpected problems in life. A tax return is a great opportunity to add a large chunk of money to that fund. If you have a sizable emergency fund, though, you may still want to add your return to a savings account. It can be helpful for buying a house, a car, or even a vacation.
Invest Wisely Investing is one area I won’t give strict advice on, because everyone has their own investment style. However, one thing everyone should consider investing in is themselves. Whether this means contributing to your retirement fund or taking an online class to learn https://brettfingerhut.com/best-uses-for-your-tax-return/
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