Have you been sitting on the money you received from your last tax refund? You’re not alone. Many families squirrel away their tax return refund dollars because they’re not sure how or where to use them. However, now could be the best time for you to take advantage of having extra dollars to spend.
Of course, this begs the bigger question— what should your tax refund spending look like? Below are five popular options.
1. Make Home Improvements
From cracked windows to damaged tile, home improvements are always on homeowners’ “to do” lists. Instead of putting off repairs and upgrades, use your tax refund to remodel your house and give your property a needed refresh.
For instance, you could paint the outside of your house. Or, you might prefer to concentrate on revitalizing one room, like the kitchen or bathroom. You’ll be amazed at how far your extra money can go toward improving your quality of life.
2. Get Trendy With Your Flooring
Has it been a long time since your floors received a little TLC? Maybe it’s time to lean into the latest flooring trends, such as engineered hardwood or luxury vinyl planks.
Using your tax refund money as a budget guide, check out all the flooring choices available to see which ones will work with your lifestyle. As an example, you might decide to replace 20-year-old laminate in your bathroom with eye-catching floor tiles. Alternatively, you might turn your master bedroom into a cozy oasis with the installation of carpet in a modern design.
3. Give Your Wheels a Tuneup
Most vehicles need to undergo special services like tire rotations and fluid replacements regularly. However, many drivers don’t have the necessary funds on hand. Alternatively, they forget to keep up with these types of services.
Now that you have a lump sum of money available, you can take your vehicles to your favorite dealership or mechanic and get the tuneup your car or truck needs. Then, if you find yourself with additional dollars to spare, you can consider investing in new speakers, keyless entry or fancy rims.
4. Become a Generous Tipper
Do you want to use some or all of your tax refund to help others? You can set aside some of the available money to give to servers when they do exceptional work. The recent economic situation has hit many people in the wallet.
Think of how much delight you could bring to your favorite server by tipping at 30% or 40% once in a while. This is a practical, personal way to commit a random act of kindness without breaking your budget. Plus, it’ll leave you feeling good.
5. Put Money Toward High-Interest Debt
Though this use for tax refund dollars is a little less exciting than others, it could greatly help you and your family. If you have debt from credit cards, school loans or other sources that are costing you a fortune in high-interest rates, you can put some of your tax return refund money toward the monthly bill.
While it would be easier to splurge with your refund, it can be a mental relief to know you’ve made a dent in the money you owe for your line of credit or your loans.
Tax Refund Spending: Unique to Your Needs
More than anything else, you should look for ways to spend your tax refund that make sense for where you are right now in your life. However, don’t be afraid to use your money to improve your standard of living and help stimulate the local, national and global economies.
Interested in remodeling your home with this year’s refund? Start with the floors! Schedule an appointment with a 50Floor expert today.