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6 Smart Ways to Spend Your Denver Tax Return

March 23, 2016

If your tax situation provides you with a refund, what do you plan on doing with it? If you do not have a plan for your Denver tax return, it is best to make one. It will enable you to spend some of it wisely, but definitely can be used to treat yourself too! Below are smart ways to handle your refund.
 
  1. Build Your Emergency Savings: How much do you have in your savings? You never know what kind of emergencies will happen, so it is important to make it a top priority to have $1000 in savings at all time. If you do not have your savings built-up, it is a great idea to use your tax return to be prepared for the unknown.
  2. Pay off Debt: As fun as it is to go spending the money you receive, if you are in debt, consider spending a portion or all of your return towards that debt. Especially if it is on high interest credit cards. Lowering your debt-to-income ratio will help your credit and peace of mind.  Plus with credit cards, check with your bank or look for other credit cards or loans that offer low interest rates or even a zero percent interest rate for a balance transfer.
  3. Invest in Your Home: Often time projects at home get put aside due to costs. A tax check is the perfect way to spend money on those home projects that have been sitting on your to-do list for a year (or even a few years!) Even if your refund will not cover the entire project, choose things you can afford and invest in them. This will create the space that you want and will increase the value of your home as well.
  4. Big Ticket Purchases: Sometimes throughout the year when we would like a new TV, couch, computer, etc., we charge it. Instead, plan to use your tax check to fund those big purchases. That way, you are not charging on credit cards with interest and can say you own it right away!
  5. Out of Sight, Out of Mind Savings: When it comes to getting extra money, spending it may be your go-to, but sometimes it is easier to use the mentality “out of sight, out of mind.” So upon receiving your refund, consider investing it into your retirement savings. Another idea, if you have children, is to invest it in their 529 college savings plan.
  6. Buy in Bulk: If you have essentials that you use all year long, why not shop for some quality deals and buy in bulk? You can easily save hundreds of dollars by investing in some of the items you use each day or week that do not go back, such as paper towels, toilet paper, cleaning supplies, trash bags, coffee filters and more! Need a plan on bulk buys? The Simple Dollar has this Ultimate Guide to Buying in Bulk to help!

If you are need of assistance to file your taxes, let us help you with your Denver taxes! As a premier tax specialist, Bloch, Rothman & Associates can help you with all of your local tax preparation and tax resolution needs. Give us a call at 303-321-7160 or fill out a contact form to get started!