Putting Your Tax Refund to Good Use
Tax season is starting to wind down, so you’ve likely received your tax refund by now. You could spend it on essentials, treat yourself to a shopping spree, or utilize it to bolster your financial future. Try not to think of your tax refund as merely extra money to spend. It’s money that you’ve worked to earn, so let it work for you! While it may be tempting to splurge and spend your refund, it would be wise to consider alternative options in today's uncertain economic climate.
Add to your emergency fund
The last two years have been unprecedented and tumultuous. Saving for emergencies is a strategic move financially and will provide peace of mind. A lack of savings would be a significant obstacle to overcome when medical or repair expenses abruptly emerge.
Pay off debt
Rather than making minimum monthly payments, use your refund to make a substantial payment on high-interest loans or credit cards. A large payment will save you money in the long run and allow you to allot your usual monthly payment to other areas of your budget.
Invest in yourself
You are your biggest asset. Perfecting your professional skills and increasing your job knowledge increases your value. Using your tax refund to enroll in training courses, further your education, or pay for professional organization memberships are investments that could provide job security, larger paychecks, and ample professional opportunities.
Home improvement projects
While you have a cash influx from your refund, it could be the right time to make some home improvement updates you’ve been putting off. Projects such as replacing older appliances or windows can significantly reduce your energy bill and increase the value of your home.
Donate to charity
If you’re in a comfortable financial situation, making a donation to a well-deserving charity is a great way to make use of your refund. Our charitable giving platform is available for First Metro Bank customers and non-customers alike. Also, if a charity is a registered 501(c)3 non-profit organization, your donation is tax-deductible.