How to Make the Most out of This Year’s Tax Refund

Mon, Mar 24, 2014

Financial Advice

If you’re getting a tax return this year, you might be considering the best way to spend that money. However, a big tax return is an opportunity to invest in your future, so you should put some serious thought into how you spend the money.

In their video, http://www.youtube.com/watch?v=q-jkuefjkiI, the specialists at Instant Tax Solutions recommend you “learn what your tax payer rights are and what tax relief programs you qualify for” to receive the most desirable tax results. Hiring a tax-solutions company is a great way to ensure that you get as much of your money back as possible, but this could leave one feeling tempted to blow that money on a vacation, big-screen television or some other luxury they wouldn’t normally be able to afford.

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1. Consider Doing Some Home Maintenance

Your home is your biggest investment, so if you have any nagging issues you’ve been avoiding due to lack of funds, now would be a great time to get them taken care of. Fixing a leaky roof or rewiring your electrical sockets might not be as exciting as taking a cruise to Jamaica, but since you never know how your financial situation might change in the future, you don’t want to miss an opportunity to fix them while you can. This is especially true if you have an older home.

 

2. Save the Money for Retirement

If your employer is willing to match the money you put toward your retirement, putting your tax return directly into your requirement account seems like an obvious choice. You only have so many years to put money toward retirement, and you don’t want to miss an opportunity to get ahead. Even if your money won’t be matched by your employer, a larger sum will still earn more interest over time. You can also consider starting an IRA, which gives you more control over your investment than a traditional 401k.

 

3. Get Yourself out of Debt

If you owe money, now is the time to reduce your debt load. It’s probably one of the least-fun ways you could spend your tax return, but it’s also one of the most valuable. Debt will eat away at your resources, including the money you could be putting toward your retirement.

 

4. Put Money Toward an Emergency Fund

These days, many people don’t have anything set aside for emergencies, which is pretty disturbing when you consider all of the things that could go wrong. Living paycheck to paycheck is dangerous, so if you don’t yet have an emergency fund, use this opportunity to start one. If you already have a fund, add to it until you have enough set aside to fully cover your expenses for three full months.

 

5. Buy a Life Insurance Policy

If you have a spouse or children to think of, a life-insurance policy is a good investment. No one wants to think about what would happen if they were to die unexpectedly, but we live in a dangerous world. If you want to get the most of your tax return, consider buying a term-insurance plan. You’ll be grateful for the peace of mind it can bring.

 

6. Put the Money Toward Your Dreams

If you’ve always wanted to make a move toward a certain career but never had the money, now is the time. Whether you take some college classes, get a certification or invest the money in a new startup, using your tax return to help you live your dreams is always a good idea. Not only will you better yourself, but you will also increase your potential for making even more money in the future.

If you find these ideas exciting but you haven’t yet done your taxes, consider a visit with a tax-solutions company today. Many people miss out on money when they attempt to do their taxes themselves, and by consulting with professionals, you can ensure that you receive the biggest refund possible.

Author Molly Pearce often writes on the topics of the law and finance and hopes this post points at least one taxpayer in the right direction. To learn more about tax-solutions and refund planning, she looked to an informative video blog ,http://www.youtube.com/watch?v=q-jkuefjkiI, and a variety of other online resources.

 

 

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