Make the Most of Your Tax Return

By
Mortgage and Lending with Southwest Funding

Are you expecting a tax refund this year? If so, you probably already have plans for how you're going to spend it - new clothes, a weekend trip, that big screen tv you've been waiting to buy. This year, instead of going on a shopping spree, why not put that money to work for you?

One financially-savvy decision would be to pay off any high-interest debt you may have ... you know, those credit card bills leftover from the holidays. The Federal Reserve estimates that credit card debt has reached a level where every man, woman and child in the United States would owe almost $3,000.

Another wise choice may be to invest in your retirement or your children's education. If your employer offers a matching contribution to your 401(k), you can double the amount of your refund. And investing in a 529 college savings plan is a way to prepare for your children's educational costs without gift-tax consequences.

Sure, you can get instant gratification by spending your tax refund, but wouldn't it be much more satisfying to try to reach your financial goals and invest in your long-term happiness?

 

Servie First Mortgage

Comments (2)

John Saari
Worcester, MA
"The Mortgage Buddy"

Build the rainy day fun and re-invest.  I took mine and allocated it to the piggy bank and new business ideas.

Mar 15, 2011 04:18 PM
Christopher Taylor
Corpus Christi, TX

I'm taking my refund and investing it in real estate!  Seriously, real estate investing has much better potential for increasing my investment than any bank.

Mar 15, 2011 04:57 PM