April 15th is just around the corner! Have you filed your taxes? If you have already filed, and received a refund, here are a few ideas on smart ways to use your tax refund.
- Pay down debt.
Using your tax refund to pay down debt, such as credit cards, car loan, students loans, can not only improve your credit score, but also put you one step closer to financial freedom.
- Put it towards your nest egg or rainy day fund.
What’s a nest egg? A nest egg is defined as a sum of money saved for the future. A nest egg, or rainy day fund, can be used for a financial emergency, when unexpected expenses come up, or simply to build up savings. Often times, it’s recommended to save 3 to 6 months living expenses for your nest egg fund.
- Make an investment.
Use your tax refund to invest. You can open a brokerage account, start an individual retirement account (IRA), or invest in real estate for personal use or rental purposes.
- Consider making a few home improvements.
Replacing old appliances, updating hardware, changing out light fixtures, replacing flooring, or updating your current landscaping can completely change the look of your space and can also add value to your home. Keep in mind you don't have to make drastic changes to make a difference in the appearance of your home!