3 Ways to Make Your Tax Return Go Further This Year

Okay, so you’ve managed to find the perfect set of credits to give yourself a tidy little sum of money back on your tax return—but what should you do with it exactly? You have so many options (plus that shopping spree or new car sound awfully tempting). But there are some really great ways to use those unplanned funds that you may not prioritize at first glance.

When deciding how best to use a tax refund, keep the following options in mind.

Pay Down Debt

One of the most effective uses of your tax refund money is to use this windfall as an opportunity to pay off (or at least significantly reduce) existing debts. From that last straggling student loan that won’t seem to go away to that credit card bill that racked itself up over the holidays, an unexpected influx of cash can make a big dent in stressful debt totals. Just make sure to spend wisely—take stock of your debts, from loans to cards, and determine which have the highest interest rates. Focus on paying those down more quickly to accrue less interest over time.

Speaking of interest rates, if you’re after a credit card with a comparatively lower rate than the competition, check out our Better Rate Visa^® Credit Card.

Bolster Your Savings

You know that rainy day fund that your mom (and most financial advisors) keep insisting you set aside? This might be your perfect opportunity to do so! While many financial experts say you should set aside anywhere from three to six months’ worth of income in an emergency savings, you have to start somewhere—so no matter the size of your refund, consider putting into a savings account. As an added bonus, consider securing a savings account that’s interest-earning to compound your funds over time.

Check out the dividend-earning savings options offered by Levo for a good example of a savings account worth your time!

Improve Your Space

One slightly more tangible use of your tax refund is to make a much-needed improvement to your home. (Particularly one that will improve the value of your home.) From that oven that’s been acting up to a fresh coat of paint to the exterior to new windows to make your home more energy-efficient during the wintertime, fixes such as these can cost money you don’t always have on hand. Take your opportunity to improve your resale value and your quality of life.

Tax refund already spoken for? There are plenty of ways to fund home improvements outside of tax season—check out these home-equity opportunities offered by Levo Credit Union!