Recommended Ways to Use Your Tax Return

Nov 20, 2020

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How Should I Spend My Tax Refund?

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After you file your taxes, you may receive a big tax return inrnthe mail or through direct deposit. For some, that may raise some questions.rnHow should I spend my tax refund? How much of it should I save? Here are some recommendedrnways to use your tax return.

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Pay off Necessities

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Are you financially struggling this month? The first thingrnthat should be addressed are your basic necessities. This includes any rent,rnmortgage, food, electricity, water, and phone bills you may have fallen behindrnon. By taking care of this debt, you will rest easy knowing that you and yourrnfamily are taken care of. Remember, necessities do not include any wants likerngame consoles and vacations.

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Put Some in Savings or in an Emergency Fund

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Knowing you have a safety net if something unexpectedrnhappens will surely reduce your financial stress. If you don’t already have anrnemergency fund, it’s a good idea to start one. Afterall, you never know whenrnyou’ll need car repairs, end up in the hospital, or even lose your job.

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If you have an emergency fund and it’s looking healthy,rnconsider putting some of your tax return into your savings account or towardsrnretirement. The more you contribute to these accounts early on, the better offrnyou’ll be later.

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Tax return check on top of a tax form

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Use as a Down Payment for a Different Car

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One of the best times of the year to purchase a vehicle is taxrnseason. Why is this? Saving for a down payment for a vehicle is a stressful andrntime-consuming task for many car buyers. Many shoppers will consider their taxrnreturn as their down payment. Therefore, all that’s left is budgeting for thernmonthly payments.

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[ Get Pre-Approved for a Used CarrnLoan ]

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Of course, you should always take care of your needs first. Ifrnyou need a reliable vehicle to get around for work and running errands, check out our large selection ofrnused vehicles. Found one that may be a good match? Let us know which onernand we will provide more details and help you take it for a test drive. Is thernvehicle right for you? Talk with us about your financial situation and we willrnoffer financing that is affordable to you.