In a written letter, Benjamin Franklin quipped, “In this world nothing can be said to be certain, except death and taxes.” Surprise! Tax time has rolled around again.
I often hear people discuss their plans for spending the year’s tax refund. I don’t think it’s merely a coincidence that the government refunds overpaid taxes at the exact time that everyone in Flint is freezing and desperately wanting a warm, sunny spring break retreat … but perhaps my conspiracy theory can be discussed at another time.
When it comes to spending your tax refund, there are many temptations and options. Tax season advertisements scream for your attention offering flashy sales and great discounts. Perhaps you’ve been saving for a special purchase and your refund check will put you at your goal. If you have revolving lines of credit because of credit card use or other high-interest debt like auto or personal loans, I recommend getting rid of those burdens first. High-interest debt is like a monkey on your back! The following three areas can be easily addressed and get you on your way to financial freedom.
1. Practically every retail store has an offer for a discount on the day’s purchase if you apply for a store credit card. As attractive as those offers appear, the interest rates on these credit cards are often the industry’s highest. Pay off this debt in full and close out those store credit cards!
2. Paying with a credit card is ultra-convenient – they are accepted everywhere from the gas station to any fast food joint to the world’s finest shops. But the interest charges provide an unimaginable profit for those lenders. Look to pay down other outstanding major bank credit card debt, targeting high-interest cards first, and see if you can’t completely eliminate those interest fees.
3. We all need transportation options and living in the area of the country we do, cars are important. Most families need multiple vehicles to keep up with their busy schedules. If you have auto loans, look to pay them down. Paying off a car loan frees up a tremendous amount of extra cash flow that can be saved and invested.
Work on these three steps first. Then, if you still have wiggle room in your refund, take a cue from this month’s My City Magazine theme and beautify your home with a landscaping project. If you are looking to sell your house or just want to make some changes to your home, nothing beats a yard that has been well-maintained. Your neighbors will be appreciative, too!
Happy Tax Season!
800.338.4586 olvinvest.com The Durant 607 E 2nd Ave., Ste. 100 Flint, MI 48502 jlagore@olvinvest.com Securities offered through Sigma Financial Corporation, member FINRA/SIPC. Investment advisory services offered through SPC, a registered investment advisor. OLV Investment Group is independent of Sigma Financial Corporation and SPC.
