Tax Day 2019 is quickly approaching. It’s no secret the best part of completing your taxes is that moment your refund hits your bank account. So in preparation for the big day, let’s break down how to make the smartest decisions with your tax return money – whether you’re saving up for a new car, purchasing a home, paying off debt, planning a lavish vacation or simply building up your savings. If you’re unsure, take a look at three wise ways to plan for this year’s tax refund.
1. Decide how you would like to receive your refund
To start, many taxpayers opt for e-file and direct deposit to receive the money more quickly. With direct deposit, you can choose to have your refund go into a checking or savings account, depending on your personal preference. In addition to one of your personal bank accounts, you can also request your refund go directly toward other accounts, such as an existing IRA account or a savings bond. However, you do still have the option to receive your refund via paper check to the address listed on your return.
2. Start a savings account for something big
That “something big” will vary from person to person. Maybe you’re saving to purchase a home or a new car, or planning a European vacation. Whatever it may be, there’s no better time than now to start saving up by putting your tax return money away in a savings account. If you don’t already have a savings account, or would like to create one dedicated to a certain purchase, research your account options to choose the right one for you. If you’re a Sharonview member, starting a savings account is a quick and easy way to help you tuck your money away in a safe place. No matter which savings account you choose, it will give you the ability to put money aside for that exciting purchase.
3. Invest in your future
Your financial future is vitally important, so it’s never too early to start thinking ahead. Investing means more than just retirement planning, so look into different options that can help you maximize your refund over time. Research opportunities such as mutual funds, real estate investments and stock portfolios. Need advice to make sure you’re investing your money wisely? Connect with a financial planner to learn more about your options and what can bring you the most financial success. It’s always tempting to go make a splurge purchase with your tax return money, but it’s important to remember that it’s often more beneficial to put that money toward your future financial goals. Who knows, a small investment may turn into way more.
Whether it’s your first year receiving a tax refund or you’ve been filing taxes for years, it’s never a bad idea to brush up on your financial knowledge. A direct deposit into your checking account is just one of many options, so take the time to thoughtfully select where your money will go and what you will spend it on.