Expecting An Income Tax Refund?
Posted by Richard on April 13, 2023
The best things you can do now with $1,000. You love the idea of getting an income tax refund check from Uncle Sam. It’s really your own money and not some sort of bonus gift, but it might feel like one. Here’s what to do with it.
*Stash it. In case of a calamity or job loss, you could need money for up to six months’ worth of expenses set aside. Saving account interest rates are up.
* Pay an extra payment on your mortgage. Being a month ahead is handy in case of an emergency and in the end, you save on interest.
* Buy a gym membership. You’ll feel good and save money on medical expenses. A person who is five feet 10 inches tall and weighs more than 209 pounds spends an average of $1,429 more on health care costs in a year than someone who weighs 174 pounds or less.
* Put it in your IRA. If you are age 50 or older, put the $1,000 into your individual retirement account.
* Pay the $1,000 on your highest interest-rate debt. The interest you save, say 18-29 percent, is the same as getting a guaranteed 18 to 29 percent return on any investment. Eighteen percent is now common for credit cards.