Lone Star National Bank
4 Smart Ways to Spend Your Tax Refund in 2019
Apr 05, 2017
While most have yet to receive their W2s, many are already debating on what to spend their refunds on. You could have your refund earmarked for some much needed shopping, but before you get ahead of yourself, rethink what you’ll be doing with yours. Don’t treat your money as a bonus check. Instead, give it a purpose. Determine your needs and the current financial situation you’re in to prevent yourself from being reckless. Consider the priorities below.
Start an Emergency Fund
Any surprise expense can send you into a major debt spiral without notice. A rule of thumb many follow is to have anywhere from six to eight months’ worth of savings stashed away. Consider our savings accounts or money market accounts to be prepared should the unexpected happen.
A costly vehicle or home repair, medical bills or emergency can be one of the many reasons most find themselves in financial disarray. Consider contributing to an emergency account every week. Even if it’s just a small amount, it’ll eventually add up. Using your refund to jumpstart an emergency account will certainly give you the leg up needed if you suddenly need some money.
Pay Off Debt
Once your emergency fund has been set up, the next order of business is reducing or eliminating high-interest debt that you might have. Start paying off high-interest student loans, car loans or credit card debts that might be lingering around. Trust us, this debt will only hold you back in the long run and will certainly look bad if you apply for a mortgage.
Be Careful with Your Purchases
Differentiate between needing and wanting something. Do you need some dental work or vehicle/home repairs? Did you spot a large television set on sale that you’ve wanted to purchase for so long even though you already have a smaller model? If your vehicle is in dire need of new brakes since you depend on it every day for work, have it taken care of. If you’re tired of that rug in the living room and are ready to purchase a new one, sit back and think if you really need it. Will replacing it make life easier for you? This is where you have to be responsible. Only spend money on issues that absolutely cannot be ignored.
Depending on your goals, you could use your refund to get a head start on investing. Our investment services are headed by agents that are more than happy to help give you advice and guidance with a wide range of investment products. Our bank is also a full-service brokerage firm where we can help you make sound decisions for your future financial needs.
Helping You with Your Finances
If you’ve been thinking about starting a business or are looking to take it to the next level, a tax refund is a great way to start. It’ll help you jumpstart the process and it’s also a great way to get small business deductions for the following year. Don’t forget, we have business solutions such as checking and savings accounts to help keep your company afloat with its financial goals. Contact or visit our bank in McAllen today so we can help you make the most out of your refund.