Most people run right out after receiving their tax return and spend it on a luxury (or necessity) they’ve been hoping to enjoy. To make the most of your tax return, think about safe alternatives for turning the money returned to you into more money in your pocket. Here are a few options:
- Start an interest-bearing savings account that can add to your peace of mind.
- Speak to a reputable financial adviser who can help you decide where to invest it carefully, perhaps in a low-risk mutual fund, annuity, 401K or other retirement plan, where your money is likely to make you money.
- Use your tax return to reduce indebtedness by paying down debts not likely to be discharged under a bankruptcy filing (such as child support and college loans).
- If you own a small business, you might choose to invest it in a special project, such as a sales, marketing or incentive program, that will help add to your bottom line.
- If you are so deeply in debt that your tax return feels more like a small drop in an already leaky bucket, then contact Daley Law or another qualified attorney to help you review your debt situation.
Debt management is a skill that you can learn. For more information read our last article on Financial Fitness.