In yesterday’s entry, we talked about five wise investments now that you’ve got a little extra money thanks to your tax return. Tips include beefing up your emergency fund, refinancing your home, paying down debt, and having a little fun. But the wise investments don’t stop there. Below are five more things you might consider spending Uncle Sam’s check on.
INVEST IN YOUR HOME – Replacing an old furnace, water heater or patching a leaky roof might be out of the question any other time of the year, but with a few thousand dollars coming your way, it’s suddenly possible. Now’s the time to do it, and wouldn’t you rather replace that water heater now – when you have the extra cash – then later in the year when it dies and you can’t afford it?
BUY LIFE INSURANCE – Maybe you already have life insurance and maybe you don’t. If you don’t, you should definite get some. (A 30-something year old male or female can get $500,000 in life insurance for only a few hundred dollars per year.)
BUY SOMETHING YOU NEED – Similar to investing in your home, use your extra cash to buy something you need, but have been putting off. That includes new winter coats for the family (the spring is the best time to buy them!), dental work, or new tires for the car.
INVEST IN YOURSELF – Extra certifications or attending an annual conference can cost a few hundred dollars (or a $1000), but it could lead to a promotion or pay raise, which makes the investment well worth it in the long run. Another good personal investment: If you need to lose some weight and have trouble getting motivated, use the money for a gym membership and a personal trainer.
GIVE TO CHARITY – If you don’t give to charity, don’t worry – many people don’t. But now that you have some extra income, now’s a good time to start. Pick a charity that’s important to you and your family and give as much as you can. You’ll feel better about yourself and the donation is tax deductible!