Tax season is upon us and many consumers, particularly homeowners, are filing their taxes and expecting a return. According to a 2016 survey conducted by NeighborWorks America, two-thirds of taxpayers expect to receive a refund in 2017. So what should homeowners do with that money? Here are some smart ways to put that refund to good use.
BUILD A HOME EMERGENCY FUND
No matter the amount of a refund, homeowners should think long and hard about setting aside a portion of their cash for their homes. Home repairs can be expensive, and not planning for them could be a sudden financial burden. Use some or all of your refund to give you peace of mind in case of an emergency.
PAY OFF YOUR DEBT
Whether it's student loans, paying down your mortgage or credit cards, try to put as much money toward debt as you can. Paying off your credit cards as soon as possible can save hundreds of dollars or more in a given year. Debt is a burden you may not even realize until it's completely unmanageable. Never let it get to that point!
ADD TO YOUR RETIREMENT ACCOUNT
Some homeowners consider the increase in their home equity a major part of their retirement plan. Home values are growing; however, if you have the option of putting money aside for retirement you should strongly consider that choice, especially if there are several years or even decades before you retire. It's never too early to start planning for the financial stability of your future.