Recently, I saw a commercial on TV for a popular car painting place. The commercial mentioned that they had "tax season specials". I looked online and saw an ad on YouTube for the same company which asked, "Looking for a responsible way to spend your tax return?" Now, I'm all for spending your money the way you see fit, but is getting a paint job for your car really the most responsible thing to do with your tax refund?
All this got me thinking. What really IS the most responsible thing to do with your tax refund? And here is your answer. I have here 5 AWESOME things you should be doing with your tax refund! Doing any one of these five suggestions will put you on a road to increased wealth and stability, and will do so much more than getting a paint job on your car. Let's get started!
Tax Refund Idea #1 - Put it towards a down payment on a new home!
Home ownership is a major part of how people build wealth in our country. Typically, home values rise over time, so the home you buy can be worth more when you sell. Also, as you pay down your mortgage, you build more and more equity in the home. That can mean a great deal when it comes time to sell!
Are you currently renting? Wouldn't it be great to be paying off your OWN home rather than someone else's? With certain loan programs allowing borrowers to put down as little as 3% to 3.5% on their new home, you can't go wrong!
Tax Refund Idea #2 - Put it towards a down payment on an investment property!
If paying down the mortgage on the home in which you reside is a good idea, having other people pay the mortgage for you is even better! Putting your tax refund towards an investment property is a great way to build passive income and future wealth, all at the same time.
Tax Refund Idea #3 - Save it for closing costs on your new home!
When you buy a home, there will be costs associated with the closing that you will have to pay. Costs include prepaying property taxes, title search fees, attorney fees, and more. Having money set aside to take care of those costs will go a long way.
Tax Refund Idea #4 - Pay down your debt!
Paying down your debt is certainly not one of the more exciting sounding things to do with your tax return, but it can be really important. Why? Because, if you are carrying large balances on your credit cards, or if you have other revolving debt that is outstanding, you may still be able to qualify for a mortgage, but you might not be able to qualify for as MUCH of a mortgage as you would like. This could mean that your dream home could be just out of reach.
Paying these debts down will help you qualify for a larger mortgage, plus will put you on better footing when it comes to being approved for the loan. It's a win-win!
Tax Refund Idea #5 - Fix up your current home before you sell!
Do you have a home you would need to sell in order to buy your next home? Using your tax refund to spruce things up could help you get more money on the sale of your home, and help you sell more quickly! There are plenty of low-cost renovations you can undertake that can make a huge difference. Painting, having carpets cleaned, and fixing up your landscaping are just a few of the things you can use your tax refund on that will pay off when selling.
Let's get going!
Once you've decided what to do with your tax refund, you're going to need a plan! Call me at 908-705-5110, and we can put a plan together that will get you into a new home you'll LOVE in the time frame you want. Just imagine - getting the keys to your new home and having a place that's all your own! Or selling your current home and finding the new home you've been dreaming about! You're on your way!
P.S. - Don't forget, you can start your search for a new home right here on MoveMeMark.com. Have homes matching what you're looking for emailed to you as they become available! Get started by clicking here.