With tax season halfway through (remember to file by April 15!), many people are beginning to receive their tax returns. With extra cash in your pocket, you might be wondering about the best way to spend it. Not to worry, we’ve got you covered. Here are 10 different ideas for what you can do with your tax return.
Renovate or Remodel Your Home
Do you want to make some changes to your home? This is the perfect time to make those much-needed upgrades. Whether it’s creating new landscaping or changing bathroom or kitchen fixtures, the new changes can upgrade your home’s appeal and value.
If you’re interested in remodeling your home, check out our Home Equity Visa Rewards Card. It offers you an easy way to tap into your home’s equity and the chance to earn rewards on your purchases.
Donate to Charity
Donating money to your favorite charity is a great way to give back and make a difference. Not only will doing so make you feel good, but in most cases, you may also be able to qualify for a tax deduction for next year. The IRS has guidelines to follow on whether or not your contribution would meet their standards for a write-off.*
Save for School
According to College Data’s website, the average cost of tuition and fees for the 2017-2018 school year was about $34,740 at private institutions, $9,970 at public colleges, and about $25,620 for out-of-state students in public universities. It’s important to note these figures don’t include the costs of textbooks, transportation and housing. Being able to save some extra cash for yourself or your children while they attend school can really make a difference.
Build or Add to Your Emergency Savings
Starting an emergency savings fund or putting your refund toward your savings is a great way to ensure that you can handle whatever life throws at you. For example, if you have to replace all four of your vehicle’s tires, savings can mean the difference between buying the tires or taking out a short-term personal loan to pay for them (which means you’ll buy the tires and pay for interest).
If possible, try to save about 3 to 6 months’ worth of monthly expenses. In the event of an unplanned emergency, these funds will come in handy if you are not able to work. Based on your financial needs and goals, this number can be adjusted to a higher percentage.
Pay Down Your Debt
Get a little closer to being debt-free by paying down or paying off your credit cards, vehicle loans, student debt, or mortgage. If you don’t have a debt-reduction strategy, CNBC breaks down a few methods that could help you.
Have questions about the best way to pay down or pay off your debt? Give us a call at (800) 452-9515 or come into a branch to discuss your options.
Save for Retirement
Placing funds into a retirement savings plan will help ease your mind for the future that lies ahead. You will be better prepared for costs that will come up later on and have the means to pay for any unexpected situations. At NWCU, we offer our members thinking about the future the opportunity to sit and chat with a financial consultant to help determine what their needs are. Whether is individualized IRA plans or retirement plans for your business, we’ve got a potential solution for you.
Invest in Yourself
If you need help getting your ideas or business plans off the ground, investing in yourself could get your plans into action. You can start that business you’ve been thinking about and help kick start it into action. Or, perhaps finally taking those courses you’ve been longing to do. Investing in you can really take on a range of possibilities. Whether it’s advancing your skills and education or putting up seed money to get your business up and running, anyway you can improve on yourself or your ideas is a win.
Take a Vacation
What a better time to take that much-needed. Use your tax return to help pay for your dream vacation and knock a few things off your bucket list!
If you're a Northwest Rewards Visa® cardholder, look into how many rewards points you have--perhaps you can cash those points in to make your tax return go farther!
Make that big Purchase:
If you’ve been researching or in the market for a new car or thinking about buying a home, then this would be a good time to put down a large down payment/deposit.
We offer a variety of loans here at NWCU to help towards your lending needs. If you are thinking of using those funds towards other expenses, a loan will help distribute your funds to the right places.
Upgrade your Appliances:
Simply upgrading a few appliances to be more energy efficient and sustainable can help greatly in lowering your monthly bills. This can help you throughout the year; put even more funds back in your wallet!
*This should not be intended as tax advice and is for informational purposes only. Consult a tax professional for more information.