5 Smart Ideas for Your Tax Refund

We are in the middle of tax season. If you have already done your taxes, and you’re sitting on a nice tax refund check, then congrats! If you have yet to do your taxes, call us today to set up your appointment with an accountant in Billings, Montana.

Most people will get a refund. Many people will blow that refund on something frivolous. Before you head out the door and start buying rounds at your favorite watering hole, take some time to realize that this is not free money. It is money that you have earned throughout the year. Also take some time to read these tips that will help you be wealthier in 2015 than you were in prior years.

Tax Refund Tip 1: Pay Down Debt

I have yet to talk with someone that loves being in debt. Many people appreciate being able to take out a loan to buy those things that they can’t afford to pay for with cash, but most people hate debt and want to be out of debt as soon as possible.

Your tax refund will help you pay down your debt saving you a lot of money in interest charges over the next 5, 10, or 30 years. Every dollar you pay down now, is a dollar that is not accumulating interest charges.

Tax Refund Tip 2: Invest in Your Future

There has been a lot of talk recently about the future of Social Security. While it would be nearly impossible to absolutely wipe out the program, the reality is that it likely won’t be paying out quite as much in the future as it does now. But keep in mind that the program was never intended to pay for your entire retirement anyway.

You need some outside investments to help boost your retirement income and allow you to live the lifestyle you want. Investing at least part of your tax refund will help to get you there.

Tax Refund Tip 3: Give to Charity

Millions of people right here in the US are not as well off as you are. That means they could use a helping hand. You don’t have to give your entire tax refund away, but a small portion will help to go a long way. Before you give a charity your money, be sure to check them on Charity Navigator to make sure the money goes to the program and not to the CEO’s paycheck.

Tax Refund Tip 4: Save Your Money

This is different than investing. We all know the importance of having an emergency fund, yet the majority of people don’t have one. Why? Because they feel they need it all at once or nothing at all. Well with your tax refund you can fund your emergency fund all at once. Just remember that when money goes into the emergency fund it only comes out for emergencies.

Tax Refund Tip 5: Spend it on Yourself

You may be thinking, “Didn’t you just say not to spend your tax refund?” Yes, I said not to spend all of it frivolously. After you have paid down some debt, invested in your future, donated to charity, and boosted your emergency fund, there will be something left over. Even if it’s only $50 or $100, go buy yourself something nice, take your loved ones out to dinner, or buy 100 burgers off the McDonald’s Value Menu if that’s what makes you happy. You earned the money, so spend it on something that makes you happy.

Getting your taxes done by an accountant in Billings, Montana like Mike will let you get that refund back in your pocket quickly. Call 406-894-2050 to set up your appointment today!