The Best Ways to Spend and Save Your Tax Refund

Posted on: in [ Budgeting, Personal Finances, Savings, Taxes ]

The Best Ways to Spend and Save Your Tax Refund

Tax Season is upon us. With the hustle and bustle of spring approaching, April 18 is drawing nearer every day! But fear not, out of all of the federal income taxes submitted approximately 83% receive a tax refund! With the average refund totaling $3120, there’s a lot of benefits to filing your taxes. (3120 of them to be exact!)

Upon receiving your refund, there is one main questions you have to ask yourself. Do I want to save it, or spend it? In either scenario $3120 gets you a lot of bang for your buck. We at State Bank want to make sure you get the most of your money, so here are the top 5 ways to SPEND that hard earned refund, or SAVE those funds for future use!

SPEND

  1. Vacation: With trips to Florida, the Caribbean, and Mexico starting at $3000 for a family of four your tax deduction could come just in time for spring break if you file early!
  2. New Deck: Just in time for the summer, you can install a new deck for approximately $15 per square foot, totaling just over 200 square feet with a $3120 tax refund.
  3. Used Vehicle: Trade in your car for a nicer ride and use your $3120 of tax refund to find a vehicle that fits your needs to a “T.”
  4. Wedding: With a little creative flare, your $3120 can cover the two most expensive parts of the wedding, the venue and the food. With photography done by a friend, and a ceremony at your favorite local organization, the whole event may be covered with that lovely tax refund.
  5. Updated Bathroom: Although on the lower end of bathroom remodels, new vanities, a fresh coat of paint, and new hardware can really make a difference to update your home bathroom.

SAVE

  1. Retirement: Shuffle those funds on over into an IRA and get them to work! While you continue to add to the funds, interest can compound, and grow the overall amount even more.
  2. College: Tuck funds away for your child’s future college. For $3120 you’re looking at approximately one semester worth of tuition at a local community college.
  3. House Down Payment: Make the first step towards your next home purchase and start saving towards your new abode! 
  4. Stocks: By investing in a business through their stock options, you hold ownership and create an opportunity for your money to work for you. The funds are not guaranteed, and have the potential to lose or gain value depending on how well they perform.
  5. Emergency Fund: Haven’t set up your emergency cash? As a general rule of thumb an emergency fund should have approximate amount of 5-6 months of your current income. $3120 may not cover all of that, but certainly it’s a great place to start!

No matter if you decide to SPEND or SAVE, State Bank is here to help you with all of your financial needs. Stop by the bank today and learn about all the ways you can continue to save after tax season.

 

The stocks mentioned in this article are not FDIC insured, do not hold any bank guarantee, may lose value, are not a deposit, and are not insured by any federal government agency.

Close

Are you having trouble finding what you are looking for?