Tax season can actually be fun when you find out that you are eligible for a refund, but there are ways you can make the most of that check. Your tax preparation expert offers four useful places to put that refund check that will actually pay off.
A CD is a form on investment that offers interest on your money, usually over the course of three to ten years. With an investment as small as $3000 you could see a return as big as $310 in only three years. If you choose a 60-month CD, the return would be $650. Your tax preparation expert encourages finding ways to make your tax return money work for you, and a CD is a low-risk investment with considerable returns.
Supplementing your retirement is also a solid investment. If you have a 401K, your tax preparation expert would suggest putting the money into that kind of investment because it will be tax deductible the next year.
Another place to put that return check is to take down some debt. Most Americans carry some form of debt which includes debt from car payments, credit cards, or even debt to family. Your tax preparation expert suggests whittling down some of this debt because it will increase your financial freedom.
Many people don’t consider putting their refund checks into their mortgage payment, but your tax preparation expert knows that it is solid investment. Every time that you pay your mortgage, you have to pay interest on the money that you owe. If you cut the money that you owe down, you will be able to pay more of your principle balance off.
It can be very tempting to use your tax return for a trip or some other extravagance, but your tax preparation experts knows that by saving or investing that money you will find you will have more financial freedom in the future.