There are smart ways and not-so-smart ways of spending your tax refund. The experts at Costin & Company, CPAs, an Ohio certified public accountant firm, says that if you give careful thought to how you spend this infusion of cash, you can plant the seeds of a more comfortable financial future. Below are four worthwhile ways to spend your refund check:
- Pay Down Credit Card Debt: Credit card debt can cost you a bundle if it isn't promptly paid down. If you have credit card debt with interest rates in the double digits, you'll be able to save money on interest costs by using the refund on your income taxes to reduce or pay off your debt.
- Create Or Pad Your Emergency Fund: Having an emergency fund will ensure that you're covered in the event of a job loss or financial challenges such as unexpected car repairs. Ideally, this fund should be large enough to cover about six months of your living expenses. Use the refund on your income taxes to begin this fund or to pad your savings if you've already set one up.
- Boost Retirement Savings: You can never have too much money in your retirement savings account. Deposit some or all of the refund on your taxes into your IRA to give your savings a boost.
- Spend It On Something You Need: If there's an essential purchase that you've been putting off due to lack of financial resources, now is the time to take the plunge. Use your tax return to help pay for car repairs, dental work, and other costly yet necessary endeavors.
Serving North Ridgeville, OH, and the surrounding area, Costin & Company, CPAs, is an accounting firm that is committed to providing clients with service that is both prompt and accurate. In business for over 40 years, this family-owned certified public accountant firm delivers first-rate assistance with taxes and offers a host of other financial services for individuals and small businesses. Get the help you need to keep your financial affairs in order by calling Costin & Company, CPAs, at (440) 327-0720, or learn more by visiting the company online.