Having personal taxes taken out of your paycheck can sting, but if you’re like most Americans, this contribution will put a decent amount back in your pocket. When you receive the refund, it can be tempting to go on a shopping spree. But is it the smartest choice? As Clark W. Terrell CPA explains, there are a few better ways to put that money to use. If you’re not sure what to do with your refund, consider these tips from this trusted accountant of Crossett, AR.

5 Practical Ways to Put Your Personal Tax Refund to Use

1. Contribute to Your Retirement

Using your refund to augment your retirement savings account—such as an IRA or 401(k)—offers several advantages. For one, you’ll be putting a big chunk of change toward making your golden years more financially secure. If you have a while before you retire, investing the extra money also gives it more time to grow. Depending on the type of account you have, you may also be able to use your contributions to minimize future tax responsibilities.

2. Dial Down Your Debt

Whether a car, mortgage, student loan, or credit card is weighing you down with debt, your refund could be used to alleviate some of the pressure. Even if you’re comfortable with the monthly payments, making the effort to pay off some—or all of it—today could save you a hefty amount in interest charges.

3. Buy Stocks

When you’re looking to build your wealth, channeling your money into a diversified stock portfolio is one of the best ways to multiply your refund. To minimize your future tax burden on capital gains, consider investing the funds toward a stock you feel comfortable holding for more than a year.  

4. Fix Up Your Home

If you need home repairs—or simply have been dreaming about a renovation—you may want to use your refund to finance the project. In addition to enhancing your living space, many improvements can actually increase property value.

5. Give Back, Save Money  

In the event you don’t have any pressing financial matters, it might make sense to donate your refund to a worthy charity. Contributions to non-profits can help those in need and be claimed as a deduction on next year’s personal taxes.

Whether you need help preparing your personal taxes or are looking for guidance on how to reinvest your refund, Clark W. Terrell CPA offers the qualified expertise you need to protect your finances. Up to date on all current regulations, this accountant of Crossett, AR, understands how to carefully review your income and expenses to minimize your tax burden, as well as develop smart practices to build wealth. You can learn more about these tax services online or call (870) 364-5006 to arrange flat-rate financial planning from this leading specialist.