6 Ways to Use Your Tax Refund

Posted by Ronald J. Fichera Mar 02, 2023

You've just received your tax refund, and you're wondering how to best spend it. You might be tempted to treat yourself to a shopping spree, but there are better ways to use your refund! If you need assistance with financial planning for your household, you can turn to the Ronald J. Fichera Law Firm. Furthermore, here are a few ideas for spending or investing your tax refund, from paying for online classes to covering the costs of home repairs.

Invest in College Courses

You can use your tax refund for professional development purposes. For instance, by choosing between CompTIA stackable certifications, you can learn about subjects like cybersecurity, cloud administration, or more - and you'll almost certainly increase your earning potential! You may want to enroll in online college classes so that you can keep up with work, family obligations, and studying at the same time. Just ensure that the online school you choose is accredited and offers reasonable tuition rates.

Save for a Down Payment

Are you planning to buy a home in the future? If so, you've probably been depositing some money into a savings account dedicated to your down payment. You may want to put your tax refund into this account, too. Making an extra-large contribution to your down payment savings now and then will help you reach your goal faster. It's not easy to be patient when you're saving for a down payment, but making big contributions to this account once in a while can be highly motivating!

Pay for Home Repairs

Maybe you've noticed a home maintenance issue, but you've put off addressing it because money is tight. FinanceBuzz states that you can pay for home repairs with a home equity line of credit, home equity loan, personal loan, or credit card - however, you could also use your tax refund to conveniently cover the expenses in cash. That way, you won't have to tap into your home's equity, and you also won't end up paying the interest that comes with taking out a loan.

Eliminate Credit Card Debt

Are you dealing with credit card debt? Now is the perfect time to make progress toward paying it off. You may want to dedicate a portion of your refund to paying down your credit card debt or even put your whole refund towards your debt. To continue tackling your debt, Credit Karma recommends picking up a side hustle so that you can use this additional income to make extra debt payments each month.

Set Aside Money for Gifts

Do you tend to get caught off guard by the costs of presents that add up during the holiday season? You can prepare for these expenses ahead of time by putting your tax refund into a designated savings account for birthdays and holidays. Saving for gifts in advance means that buying presents for your loved ones won't cut into your budget during the holiday months.

Enjoy a Vacation

You deserve to have a little fun! Maybe you have a dream vacation in mind, but you're not sure if you can really afford it right now. Even if you can't book a flight at the moment, you can always start setting aside money for a future trip. Add to this account a little each month until you can comfortably afford a vacation.

It can be tough to save your tax refund. After all, if you have a bit of extra disposable income, it's only natural that you'll want to splurge! But whether you want to sign up for a college class, pay off credit card debt, or even save for a future vacation, it's a good idea to consider putting your refund towards an important purpose.

Are you seeking legal and financial guidance? Turn to the Ronald J. Fichera Law Firm! Call us today at 610-768-9255 to schedule a free consultation.

This article was provided by Courtney Rosenfeld, [email protected], and brought to you by the Ronald J. Fichera Law Firm, where our mission is to provide trusted, professional legal services and strategic advice to assist our clients in their personal and business matters. Our firm is committed to delivering efficient and cost-effective legal services focusing on communication, responsiveness, and attention to detail. For more information about our services, contact us today!

This is not tax advice and should not be construed as such.  Please seek professional tax services for more information and advice that will apply to your specific tax situation.

Content in this material is for general information only and is not intended to provide specific advice or recommendations for any individual.