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5 Things To Do With Your Tax Refund

Linda Nee
Linda NeeLinda Nee

It's tax time!! Instead of using your refund to buy something of no value, utilize it to increase your financial portfolio and better the life of yourself or those around you. You will be much better off in the long run and you will reap what you sow.

1. Buy a house. As a homeowner, you get to deduct the interest you pay to the mortgage company. If you are renting or leasing, your landlord enjoys this benefit. He/she is basically enjoying the financial rewards of your inability to do this and creating wealth at the same time.

2. Start a home-based business. Business owners save an average of $500.00 monthly on their taxes. That's about 10 to 18 percent. You have the flexibility to do what the average tax payer cannot do. You can deduct home office space, utilities, gifts and incentives to name a few. Check with your tax advisor about the advantages in your state.

3. Invest in stock options. Even though the Dow has its ups and downs, your money has a greater chance to increase versus being placed in a bank account at 0.5% to 2% interest. Search and investigate the companies growth over the last five years so that you can make a wise decision. Hire a broker if you don't feel comfortable with your knowledge.

4. Pay off credit card debt with the highest interest. Most of your monthly payment is going towards the interest and not the balance. This activity makes it literally impossible to ever pay it off in a reasonable amount of time. Debt is the handicap of wealth.

5. Donate to charity. This is the most rewarding aspect of giving. Not only will you impact the lives of others, but you will contribute to your personal well being by utilizing it as a deduction next year to do the same thing again or find a new cause.

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