Making The Most Out of Your Tax Refund

Roy Cordova
Published on March 16, 2016

Making The Most Out of Your Tax Refund

 

You can use your tax refund in a variety of different ways really. You can go for a vacation, buy a brand new TV, or some other luxurious ways you might have in mind. However, with a tax refund averaging $3,000, one of the most efficient ways of using it is to reinvest it back into your home. Regardless of the amount, if you are getting a tax refund this year, you can use the following suggestions, to reinvest your refund and make improvements to your home.

Clearing debts 

You might have found yourself in a position where you needed a loan. It might have been to start a business or a home reconstruction. You might also have taken a loan for some other personal projects that needed completion when the funds were not readily available at the time.

You can use your tax refund to pay some of those loans and debts you currently have. This will save you from accumulating further interest on your loan. You may also be able to avoid other repayment methods such as credit cards, which have high interest rates. Once you clear your debts and loans, your will be able to put your financial position on course and enjoy some peace of mind.

Renovations 

There will always be repairs, renovations, or other new ideas going through your mind. However, you may be faced with the obstacle of locating the funds to facilitate your project, since it may not me an immediate priority for you. It could be repairing a broken sink, maintaining the hedge or even repainting a room.

With your tax refund, you can cover the costs involved in such minor projects without the need for any other additional sources of funds. As such, you will be giving your home a new look, adding to its overall value and as well as enhancing your own home environment.

There’s a wide range of projects you could put your refund towards. From security to other basic aesthetic improvements like those mentioned above. Everyone has a number of changes they would like to make to their house. When you finally have the time to do so make sure you have the funds put away to execute your vision.

Stop throwing money out the window

If your house isn’t weatherized, your money is literally going out the window, through the ceiling, and out the front door. Contact RHA or your local power company for some free advice about the most cost-effective ways to save money on heating and cooling your house. Sometimes just another layer of insulation in the attic can keep your home warmer for less money.

Are you still using an old refrigerator or washer-dryer combo that’s not energy inefficient? Consider donating your old appliances to Habitat for Humanity or your local charitable organization and buying a replacement that’s more energy efficient. You’ll enjoy a new appliance, save on your utility bills as a result. Now that’s smart money investing.

Energy saving installations

Energy costs consume a large portion of income in most homes and they continue rising every year. From lighting, showering, to air-conditioning and heating systems, all these activities consume energy in terms of water and electricity. Some of them tend to be old and worn out further increasing the energy consumption. There are simple fixtures that you can install and save yourself a significant amount of energy costs in future.

You can install water efficient kitchen faucets and low-flow shower heads or even replace your old lighting system with LED lighting appliances and fixtures. Other affordable options include buying a new energy-efficient refrigerator, purchasing a high-efficiency furnace, sealing air leaks, replacing old water heaters, an energy efficient clothes dryer or even adding insulation.

regardless of the value of your tax refund it should be used in the most appropriate ways. A home improvement plan and paying debts are advisable ways through which you can spend your tax refund. However, always start with the most urgent need.

 

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