Tax Hacks: 5 Great Ways to Maximize Your Refund

taxestaxesIt seems people are in either one of the two tax camps: those that have their taxes done by January 31st and then there are those who are barely scraping by on April 15th. Are you getting a refund and if so, what are you doing with it? Stashing it under the mattress? Squirreling it away into a shady overseas bank account? Investing in Silly String?

Though these are all fine ideas, for sure, there may be other that will put your extra cash to better use. For what you should be doing with it, or what we'd do with it at least, check out the following 5 ways to maximize your tax refund.

1. Take a Vacation

Yes, seriously. Take a vacation. If you're burned out and not enjoying life, you're not going to be able to make the best decisions in your everyday life. Use your tax refund to recuperate, relax, and get a little enjoyment out of life. It's not all about working non-stop.

2. Pay off Your Debt

Depending on the size of your refund, pay off an entire credit or another big bill that has been looming overhead. Living without the added pressure of looming debt is good for you financially and mentally - there's no better time than now to get out of the hole.

Related: 8 tips to help you get out of debt ... that actually work

3. Get a Jump-Start on Your Debt

If paying off all your debt isn't possible then do the next best thing: pay off a large chunk of it. By paying off a large amount of debt you'll be able to get a jolt of motivation that will hopefully help you to continue to pay off even more debt in upcoming months!


4. Repair Your Home

By keeping your home in top shape you will avoid even costlier repairs down the road. If you've got all the repairs fixed then see if you might be able to do some updating. Try to only do updates that could pay off if you decide to sell down the road. Make the most of your upgrading decisions by choosing wisely.

5. Make a Large HOA Fee Payment

If you live in a condo or rather than having that HOA (Homeowners Association) fee crop up every month pay a few months at a time so your funds are freed up month-to-month.

-By Anna Newell Jones
Follow Anna on Babble

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