I can’t tell you how many clients I talk to a day regarding credit issues, high debt balances or lack of money in savings. All these make a big impact on buying a home. Well, now is the time to use some money that will be coming your way soon to help. Real this article today and it just said it all. Here are 7 ways to use your tax refund that were suggested on MSN Money today, and the eight option I added in!
1. Pay down debt- This helps to not be spending monthly on high interest credit cards, which takes more of your money over time. And when you pay down you help your debt ratios!
2. Create an emergency fund- Having a nice little pot of savings helps you from living paycheck to paycheck (which most of us do). This way you don’t have to borrow money or rack up more credit cards. And then you have the money in the bank to fix your car when it breaks down, or repair your water heater, etc.
3. Save on insurance- If you pay your insurance in a 6 mo plan or 1 year upfront you save a great deal on your insurance (whether it be automobile, home or combined). This way you could even get a better plan with a lower deductible!
4. Get a bigger refund next year- Make energy efficient home improvements, pump up your retirement plan or donate to a charity
5. Start a business- Using the funds to start up a small business which in the long run could help you bring in extra money next year by selling your services or products!
6. Thing Big!- If going to spend on a vacation, make it a big vacation, go to the places you’ve always wanted and promised you would go and get all the memorabilia you can get! Don’t waste it away on little things you would never remember.
7. Invest- Think long term, start a college fund, or open a retirement account or a money market, earn interest on the money you have!
8. Use for down payment on a home!- Last but not least, using the money for a down payment on a home will be the first big investment you will ever make!
For more info here is the full article from MSN Money.
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~Ray Williams
Summit Home Mortgage
303-779-0591 ext. 101
