YOUR TAX REFUND
If you get a refund back after fi ling your taxes, you
might be wondering what the best way to utilize the
money is. The amount that you get back determines
how much you’ll be able to do. Here are some smart
ways to spend your tax return.
Start or contribute to an emergency fund
Always have an emergency fund to cover unexpected
expenses or emergencies. Aim to have at least three
month’s worth of expenses in a savings account. It’s
ideal to have six month’s worth to really ensure that
you have fi nancial stability when tough times hit.
Pay off debt
Save money by paying off debt such as student loans,
cars, or credit cards early. Credit cards tend to have
very high interest rates which harder to pay them off
due to incurring interest. Pay off some the balance
on one or more credit cards.
It is never too early to start saving for retirement.
Contribute as much as you can, since the goal is
to have enough in your savings to equal 80 percent
of your current salary when you’re retired. Put the
funds into an IRA to start accumulating funds.
Extra mortgage payment
Making one extra mortgage payment per year can
signifi cantly decrease how much money you pay in
interest on the loan. Call your mortgage company to check if you have a pre-payment penalty fi rst.
Every extra dollar you can put towards paying off your home gets you closer to full ownership and one
less expense you need to pay every month.
Build equity in your home by doing some improvements to increase its value. Do some of the work
yourself to save money on costs and start working on the remodel you’ve been putting off. Start
browsing your options online or head to your local hardware store and look at samples in person.
Take your time and plan the remodel out so you don’t run out of funds halfway through the project.
Purchase updated energy-star appliances to cut down on your utility bills. Simple updates such as
changing the color of the paint, switching up the fi xtures, and installing new faucets can drastically
increase your home’s value.
Focus on a need
Some needs are immediate and should be taken care of as soon as possible. For example, do auto
repairs or take it into a shop to do regular maintenance. Don’t ignore your needs completely when the
money comes in.
Invest in yourself
Spend money on improving your worth. Take classes at a community college or enroll in a trade
program if you want to increase your skills and knowledge.
Page 10 - Call us at 410-684-2600 GLEN BURNIE WEST PENNYSAVER May 16, 2018 - Zone 205