10 Suggestions Regarding What To Do With Your Tax Refund

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This year's Tax Day is Monday, April 15, 2024. Are you expecting a tax refund? We sincerely hope you are. Here are a few suggestions on what you might do with it.

1. Emergency Fund: Consider using your tax refund to establish or add to an emergency fund. Having a financial cushion can help you navigate unexpected expenses without relying on credit cards or loans.

2. Investment/Retirement: Consider contributing to your retirement accounts, such as an IRA or 401(k). Investing your tax refund in retirement savings can help you build wealth for the future and take advantage of potential tax benefits. If you would like to speak to someone, our partner and Financial Consultant, Gary Ginsberg, is still taking phone appointments. Please call us at 212.869.8926, opt. 7 and leave a voice message with your name and phone number. Gary will return your call to schedule an appointment.

3. Pay Off Debt: If you have outstanding debts, especially high-interest credit card debt, use your tax refund to pay down those balances. This can save you money on interest payments over time.

4. Education Or Training: Invest in yourself by using your tax refund to further your education or career goals. This could involve taking classes, attending workshops, or obtaining certifications that can enhance your skills and qualifications.

5. Home Improvements: Use your tax refund to improve your home which can increase its value or improve energy efficiency. This could include upgrades like installing new windows, upgrading appliances, or renovating a bathroom or kitchen.

6. Healthcare Expenses: Put your tax refund towards healthcare expenses such as medical bills, insurance premiums, or funding a health savings account for future medical expenses.

7. Start A Side Business: Consider using your tax refund to start a side business or invest in a hobby that has the potential to generate additional income. This could be anything from starting an online store to purchasing equipment for a freelance opportunity.

8. Save For A Large Purchase: If you have a specific large purchase in mind, such as a car, vacation, or down payment, use your tax refund to start a dedicated savings fund for that purpose.

9. Charitable Giving: Consider donating a portion of your tax refund to charitable organizations or causes that are important to you. Not only does it support worthwhile causes, but it can also provide you with a tax deduction if you itemize your deductions.

10. Treat Yourself (In Moderation): While it’s important to be financially responsible, it is also okay to treat yourself occasionally. Use a portion of your tax refund to splurge on something you have been wanting, whether it is a nice dinner, a weekend getaway, or a new device. Just be sure to keep it within reason and budget accordingly. 

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