Smart Ways To Use Your Tax Refund

It’s tax refund season! If you are one of many that received a tax refund check, you are probably thinking of ways to spend this new found cash. While you may be dreaming of booking a beach vacation, there are some ways to better spend this money that you’ll thank yourself for in the long run. We’ve put together a list of smart ways to spend your tax refund this year.

Pay Off Credit Card Debt

Lowering your debt means you’ll pay less in interest charges every month, leaving you with smaller payments. Getting rid of all your high-interest debt is a smart goal that can help you reach long-term goals like increasing your credit score.

Build Up Your Emergency Fund

You never know when your heating and cooling system will go out or when an appliance will need to be repaired. It’s a good idea to set some of your tax refund money aside for when these things do happen so you don’t have to put the costs on a credit card.

Make Home Improvements

If you’re thinking about selling your home in the near future, use your refund to get a head start on home improvements. Adding a fresh coat of paint or making upgrades to appliances can help increase the value of your home when you list your home.

Save For a Down Payment

If one of your goals is to stop renting and buy a home, you’ll need to save up for closing costs and a down payment on the mortgage. An ample tax refund can give you a nice start on the road towards owning a home. Use this fund as motivation to contribute a little more to this fund each month. By the time you start looking for a home and applying for a loan, you won’t have to stress about finding money for a down payment.

Whether you receive $200 or considerably more in your tax refund this year, it’s up to you to put this cash to good use. You can use it to splurge on something you’ve always wanted, or you could invest it in a way that could make you richer in the long run.

To learn more about using your tax refund in ways to aid in your home buying experience, contact a loan officer at First Ohio Home Finance today! We can guide you in the best areas to use this money for becoming a homeowner.