Learn how to use your extra cash wisely!
Breath a sigh of relief, tax season is over! As you wait for your tax refund to arrive, it’s time to think about how you want to use that extra cash. A shopping spree or a vacation may be fun, but there’s little long term investment there. Check out these ways to use your tax refund wisely!
Save it for a rainy day.
You never know when you may need a little cash. From a burst pipe to a flat tire, it’s important to be prepared for unexpected expenses. Make sure that you set aside an emergency fund. As a rule, you should keep a minimum of $1000 in a separate savings account just in case.
Invest in your retirement.
When it comes to your retirement, it’s important to start early. The earlier you start saving, the more you’ll have in savings when you reach retirement. Use your tax refund to start putting savings away for your golden years. Whether it’s a 401 (k) or an IRA, every little bit counts.
Pay off debts.
You likely won’t be able to pay off all your debt with your tax refund, but every little bit counts. As you pay off debt, your interest winds up costing you more and more. Use your tax refund toward your debts so that you can reduce some of those interest payments. Start small by paying off your credit cards and then gradually work your way up to mortgages and student loans.
Invest in life insurance.
Use your tax refund toward a life insurance policy. Make sure that your loved ones are taken care of even after you’re gone. When you invest in life insurance, you have peace of mind that your family is protected.
Make sure your use your tax refund wisely. The professionals at Phocus Insurance can find you the best insurance for your needs. Located in Phoenix, Arizona we serve all your personal and commercial insurance needs. Contact us for more information.
