6 Money-Wise Tips for Your Tax Refund

By
Real Estate Agent with Coldwell Banker Camelot Realty

6 Money-Wise Tips for Your Tax Refund

Tax refunds present an opportunity to better your financial health. Unfortunately, many refund recipients don’t take advantage of it.

If you receive a refund this year, consider using it in one (or all!) of the following ways:

  1. Pay Off Debt – When you receive your refund, resist the urge to spend it on a shopping spree, fancy dinner or pricey vacation. Instead, use your refund to pay down credit card balances, student loans, auto loans or other debt.
  2. Pay Down Your Mortgage – Direct your refund toward your mortgage principal. Even one extra payment each year can shave noticeable interest off your mortgage.
  3. Boost Your Savings – If you’re debt-free, put your money toward your emergency savings fund, retirement plan or college savings account.
  4. Adjust Your Withholding – File a new W4 to increase your allowances and pay the appropriate amount of taxes throughout the year. Use the IRS withholding calculator and aim for the number of allowances that satisfies 100 to 110 percent of last year’s tax payment.
  5. Use Direct Deposit – Set up an automatic deposit to direct the money you would have spent on excess taxes into an interest-bearing savings account. You won’t notice the difference in your paycheck— it’s money that would have been withheld for taxes—but your contributions will quickly add up.
  6. Down Payment-on your new home.

“While it’s fun to receive a wind-fall of cash, it’s important for consumers to understand the IRS isn’t giving away money—they’re returning money they borrowed, interest-free, all year long,” adds Sullivan. “It’s a good idea to adjust your withholdings to break even and make your money work for you—not just the government—throughout the year.”

 

Please contact me if you have any questions or need any additional real estate buying or selling information I'd be happy to assist.

I love real estate there is no greater feeling than seeing your customer's happy!!!

Remember if you have any questions about First Time Home Buyers Programs or any Real Estate matter I'm just a phone call or email away. I'm waiting to hear from you!

Pat Champion
Coldwell Banker/Camelot Realty
352-516-7020
1898 N. Donnelly Street
Mount Dora, FL32757
email:patwchampion@yahoo.com

My website: http://patwchampion.mfr.mlsmatrix.com

Click here to search all available MLS properties-click "Start a new Search" link to begin your new home search

For Winning results call the “CHAMPION” for all your Real Estate Needs

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Debbie Reynolds 01/30/2017 12:00 PM
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Rainmaker
3,985,581
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Save it for a decent down payment on a home.  One way to build up the savings fast.

Jan 20, 2017 03:46 PM #1
Rainmaker
1,434,894
Yolanda Cordova-Gilbert
Richmond, TX

Pat,

 These are all great ideas on what to do with a refund when we get one we put it in savings!

Jan 21, 2017 08:19 AM #2
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

William, saving for a down payment is a great way to use your refund. Thanks for stopping by I hope you have a great weekend.

Jan 21, 2017 09:23 AM #3
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Yolanda, putting your refund is savings is a great thing to do before you know it it adds up. Thanks for stopping by I hope you are enjoying your weekend.

Jan 21, 2017 09:24 AM #4
Rainmaker
1,264,992
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Pat

I think I would add another # 1, a warm beach with great umbrella drinks, cheers cvc

Jan 21, 2017 10:06 AM #5
Ambassador
4,768,572
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Yes Pat, important to remember...

“While it’s fun to receive a wind-fall of cash, it’s important for consumers to understand the IRS isn’t giving away money—they’re returning money they borrowed, interest-free, all year long,” adds Sullivan. “It’s a good idea to adjust your withholdings to break even and make your money work for you—not just the government—throughout the year.”

Jan 22, 2017 09:56 PM #6
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Curtis, that is a wonderful idea all work and no play is never fun. Thanks for stopping by I hope you have a great afternoon.

Jan 23, 2017 09:31 AM #7
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Bob, that is great advice it is better for you to have your money; instead of, the government. Thanks for stopping by I hope you have a great afternoon.

Jan 23, 2017 09:32 AM #8
Rainmaker
220,568
Diane Beaumont
Benchmark Mortgage - Woodland Park, CO
USDA,FHA,Jumbo,VA Woodland Park, CO Mortgage

Excellent tips! Great ideas we will put to use.

Jan 23, 2017 09:47 AM #9
Rainmaker
5,899,384
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is excellent advice to share. Paying down the mortgage will be more rewarding than buying another vehicle.

Jan 25, 2017 10:19 AM #10
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Diane, these are some great tips. Thanks for stopping by I hope you have a great weekend.

Jan 28, 2017 09:47 AM #11
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Roy, I totally agree with you. Thanks for stopping by I hope you have a great weekend.

Jan 28, 2017 09:48 AM #12
Ambassador
3,985,382
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I like all these suggestions Pat but particularly number 6. I have an investor that is hoping to sell several properties when the tax refunds come in.

Jan 28, 2017 09:40 PM #13
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Debbie, that is awesome news congratulations to you. I wish you continued success this year.

Jan 30, 2017 06:06 AM #14
Rainmaker
1,484,621
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Great post, Pat Champion .  My favorite is the "Pay down your mortgage".  That can make a great interest savings, equity building, strategy!

Jan 30, 2017 02:42 PM #15
Rainmaker
584,175
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

This is a good article and timely. Too bad so many will squander the opportunity year after year!

Jan 30, 2017 08:04 PM #16
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Carol, I feel the same way as you do paying down the mortgage is a win for everyone. Thanks for stopping by I hope you are enjoying your Sunday.

Feb 12, 2017 09:23 AM #17
Rainmaker
712,737
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Nathan, you are right a lot of individuals will blow the money. Thanks for stopping by I hope you are enjoying your Sunday.

Feb 12, 2017 09:25 AM #18
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