Sharon Wagner - Posted: Friday, 10 March 2023

Seniors: Let Your Tax Refund Work For You

The scene is set for the next stage of your life. You have filed your taxes and produced a decent refund, which will help you transition to the next act. Now, it’s time you step into the limelight and let your money play a supporting role, rather than steal the show.

All too often, we have let our money dictate what happens next. Instead, we can choose to let money work for our advantage. Improve your lifestyle and secure your financial future by following these expert suggestions from Spark Employment Services on how to use your tax refund.

Set Up An Emergency Fund

Do you already have an emergency fund waiting safely nearby? If you do, continue to add to your fund in order to be fully prepared for whatever may come. If you don’t have an emergency fund yet, it is never too late to start. Medical emergencies, sudden and drastic home repairs, or family emergencies are not an everyday occurrence, so it might seem unnecessary to set aside a budget for an unforeseen situation. Yet, if something unexpected happens, it could take years to recover from the financial blow. It is always better to plan and save over time than to wind up in more debt by trying to handle it all at once.

Home Improvement

Invest in yourself and your next several years by using your tax refund to improve the equity on your home. Basic home improvements like gutter work, heating and cooling maintenance, or new paint and flooring will update your home and give you the peace of mind that it will last over the years to come. If you choose to downsize, your home will already be market-ready, because of your years of maintenance, and you won’t have to use your cash on upgrades while trying to buy a new home.

Since aging-in-place renovations are often a priority for seniors, another option – and one that is often very cost-effective – is to transition into an accessible apartment. If you’ll be selling your home, be sure to investigate local market conditions first. You may find that it isn’t the best time to sell your home. You may be better off hanging onto it for a few months and selling later.

Get Rid of Debt

Focus on the future by paying off your current debt with your tax refund. If you don’t want to spend it all at once, you can use a significant amount of your refund check toward paying off a credit card, loan, or mortgage.You will be surprised how many years of house payments you can avoid by paying just one extra payment a year, thanks to that refund.

If you don’t plan on aging in place, you can use your refund to upgrade your home in order to raise its appraised value. That way, when you’re ready to sell, you’ll be more likely to get top dollar for your property. Look to see which upgrades are most popular in your area, and focus there. Updated kitchens, bathrooms, and yards tend to be the most sought after.

Hire A Professional

As the saying goes, “It takes money to make money,” and in the case of personal financial planning, that is definitely a true statement. Use your refund check to hire a professional to advise you on your specific financial position. Ask them about investment opportunities, retirement plans, or how and when to save your income. A face-to-face interaction can make all the difference in your money management processes. Another instance where professional help can be useful is with tax preparation. If you have any doubts or concerns about filing your taxes correctly, connect with a tax professional in minutes online.

Save for A New Side Business

Do you have a hobby that you absolutely love doing? Is it something that you could offer as a service or do you make a product that you could sell? Use your tax refund to pour back into your future by investing in your own start-up business. Make sure you do your research ahead of time so that next year when you file your taxes, your refund check can be used to grow your new, successful venture.

Put Your Money to Work

Let your money work for you, not the other way around. This stage of your life should be exciting and fun, with the best yet to come. All it takes is a little planning and you can make your tax refund work for you!

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