6 Ways To Flip Your Tax Refund … Like A Girl

Finally! Tax refunds are starting to roll in. Do you have yours? What have you purchased so far?

Our clients are generally happy to see a cash infusion into their family’s bank accounts and eager to know how they can best utilize the funds. Below are a few ways to stretch your money.  Take a look and tell me if investing in any of these ideas would be helpful to you and yours.

Pay down debt. Make an extra payment on one of your debts; student loans, mortgage, credit cards, or car loans.  Be sure to allocate the payment as principal only. You may need to call your creditor to confirm the extra payment was applied properly. This reduces the amount of interest you will pay on the loan.

Pay up your utility bills for a few months. Pay 2-3 months of your utility bill in advance. This is one of my favorites. It feels good to get a “bill” with a credit instead of a balance due. Some companies offer a discount if you pay for a year of service in advance. Asking never hurts.

Build/Contribute to an emergency fund. Did you know that studies show almost 50% of Americans would not be able to cover an unexpected expense of $500 or less? That’s the same amount as most of our car insurance deductibles. How scary is that?! Add $500 to a savings account as cushion for emergencies.

Tuh! Who’s a statistic?! *flips hair* *slides on sunnies*

Open a 529 savings plan. Invest in your children and their education with a state sponsored college savings plan. Withdrawals on qualified items (tuition, books, room and board, etc) and growth are typically tax exempt on both state and federal levels. Learn more.

Be reasonable with discretionary spending. Don’t over spend on your wants. I was going to write a long paragraph, but why? Don’t do it. You will regret it.

Start/Contribute to a Roth IRA. Investing in your future self is always a good idea. You may contribute around $5,500 a year to a Roth IRA and pay no tax on the withdrawals once you reach retirement age. (Roth IRAs do not interfere with your 401(k) or 403(b) contributions.)

The best kind of money creates options, secures the family, and multiplies in your sleep. Stretch those dollars girl!

 

Financially Yours,

Tretta

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