With tax season coming to an end, you may be in a fortunate position to be receiving a tax refund.
Here are five different ways you can spend your tax return wisely.
Pay off any outstanding debt or lower your credit card balance
Using your tax return to pay off bills or your credit card is a great option to help alleviate stress and help get your finances in check. Paying off those bills or credit cards with higher interest first will be better to you help you save money in the longer run.
Make a payment toward your mortgage
Some mortgage terms will allow you to make an additional payment without penalty. By making a one-time payment, you will be reducing the amount of interest you would be paying later.
Start an investment
Use your tax return to start a long-term investment if you haven’t done so already. Opening an RRSP to save for your retirement or an RESP to start saving for your child’s education are both great ways to start investing for yourself, and your family.
Add to your savings
Putting your tax return in your savings account is a great option to set yourself up with funds when unexpected purchases arise. You’ll be glad to have this extra money to rely on when you need it.
Spend it on yourself
Consider spending your tax return on a purchase you have been thinking about. Sometimes we all need to treat ourselves.
For additional help or tips, contact a wealth advisor today.