How to Spend and Save Your Tax Refund
Taxes can be a total bore as you have to pay out of your pocket. But having a tax refund is a joyous moment as you are getting some of the money that you have already paid coming back to you. There are many ways to deal with this unexpected gift from the tax department.
There are many ideas of spending them as well as saving them. It is best that a combination of both is utilised in order to have a bit of fun as well as do something good for your future as well.
Instructions
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1
Invest
If the amount is substantial, you can invest it. There are numerous channels where the investment can be made and going for something such as government issued bonds may not be a bad idea. If you are not looking for a long term option and are looking for some quick results, you can make an investment in an existing business. You can also start a small business of your own provided that you have gotten enough of a refund, time and commitment to the effort. -
2
Down Payment
If you are looking to buy a house or a condominium, using the money from the refund of taxes can be an excellent idea. It is obviously important that the refund amount is substantial and is not a few hundred dollars. You can cover the closing costs or add to the down payment with the help of this money. -
3
Pay Credit Card Bills
If you have bills that are piling up, you can spend the money on lowering your monthly instalment as well as the overall bill. The amount you pay will help you pay the lower amount in the way of interest payments. -
4
Improve Your Look
Spending your refund amount on getting new clothes, shades and shoes is much better than spending the same amount with a credit card. Although it is not the greatest way to spend the refund, it is still better than getting under the burden of taxes. -
5
Get the Car Fixed
If your car has been giving you a tough time of late, get it fixed. Get an oil change, get tuning of the car done and give it a nice professional detailing job. This is going to make it look and feel a lot better and the performance should also be enhanced.
