Get the Most Benefit from Your 2018 Tax Refund
Almost eight out of every ten U.S. tax filers receives a tax refund according to the most recent tax filing data from the IRS. The average tax refund in 2017 was almost $3,000, a sum that could make a difference for many Americans living paycheck to paycheck.
There’s no limit to what you can spend your tax refund on, as long as you can afford it. Whether you’re looking to take a trip to your dream destination or finally paydown your personal loan debt, there are certain things you can do to stretch your 2018 tax refund.
Here are four ways to get the most out of your 2018 tax refund.
Book Your Trip During Off Season
Don’t forget to be a savvy shopper when booking your trip. Utilizing cheap travel hacks will make your tax refund stretch further. Just because you can afford to travel during peak times, doesn’t mean you should. Peak season can be a dreadful time of year to travel between crowded airports, tourist attractions and resorts. Traveling during off season isn’t just cheaper, it’s more enjoyable.
Many resorts have more availability during off season. That means you’re more likely to score a free room upgrade. Peak season for most destinations is during the summer months and holiday weekends. Off season tends to be in the fall, when kids go back to school. Compare rates online to save and make the most of your tax refund.
Tackle High Interest First
Whether you have personal loans, credit card or student loan debt, make your tax refund count by paying down the debt with the highest interest first. By paying down the debt with the highest interest first, you could save hundreds to thousands of dollars in interest payments.
It’s also important to consider your balance. Your tax refund probably isn’t enough to pay off your student loan or mortgage, but it may be enough to pay off a credit card or personal loan. Eliminating one source of debt can make it easier for you to manage monthly payments. Paying down debt can also improve your credit score, especially if your credit-to-debt ratio is what’s dragging it down.
Invest in Retirement
Another way to make the most of your 2018 tax refund is to invest in your retirement. You can invest in your 401(k) if your company provides one, especially if they provide matching. If not, you could open up an IRA account and start your own retirement savings.
Boost Your Health
Little else matters if you don’t have your health. Invest in yourself and put your health first by using your tax refund to cover the cost of a fitness membership, nutritionist, or doctor’s visits. Certain tests like MRIs, ultrasounds and imaging can save your life. They can also be costly depending on your health insurance. If you’ve been putting off health testing due to the expense, your tax refund can help.
Invest in Your Career
In today’s digital world, your online presence can help you score a great job. Use your tax refund to boost your career prospects by investing in a professional headshot or website. If you lack certain skills required for a promotion, invest your tax refund in online classes.
Networking is a great way to meet influential people who could help you land your next job. Some industry associations charge membership dues, but they may be worth it if they can help you connect with a great opportunity.
Don’t waste your 2018 tax refund, make the most of it by spending it wisely.
This post is not intended to be a solicitation for a loan. Pomo One Marketing, Inc. provides these blogs for entertainment and informational purposes only. Remember to consider all your financial options before making any decisions related to credit.