5 Things You Should Be Spending Your Tax Refund On in 2020
This year, take the time to plan how you will make the most out of your 2020 tax return and consider making the wisest financial decision possible. There are many ways to do this such as buying a used car, investing in a new computer, or paying off student loans or credit card debt. To make sure that your tax season in 2020 is a good one, here are some important tips for spending your tax refund.
These are five important things you could consider spending your tax refund on in 2020.
1 — Buy a Car with your Tax Refund
Perhaps you have been driving the same vehicle for ten years and it’s time for an upgrade. Now that we are nearing 2020, all of the vehicles of the last decade will be dropping in price. This can lead to getting excellent value on your next used car purchase, especially if you come to Auto Now in Wichita.
Browse the available inventory at the Auto Now in Wichita website. Here you will find the hottest convertibles, coupes, hatchbacks, hybrids, sedans, SUVs, trucks, and more.
Auto Now is a Buy Here Pay Here dealership in Wichita that can help you rebuild your credit, get an approval on a loan with less than perfect credit, and get a two-year/24,000-mile limited warranty. You can get a Buy Here Pay Here car in Wichita with excellent repayment terms at Auto Now.
You can browse the available offers on the Auto Now website so that you have an idea of what our inventory is before you arrive. You can find the contact information for Auto Now Wichita online as well as a $200 internet discount.
The Auto Now website also has shopping tools designed to assist in buying your used vehicle so be sure to check it out before making your next purchase. A used car can be a wise decision as you can still upgrade to a newer year without suffering the depreciation that a new car experiences when it is driven off the lot.
2 — Invest in a New Computer
With most people having email accounts, bank accounts, and other important online functions, it is a good idea to keep your home computer updated. Aside from being fast, a new computer can help your data stay secure with the latest security updates. Older computers fall to the wayside as technology advances and machines become no longer compatible with the latest security updates.
Having a new computer can also help you do important things such as manage your bank account, budget your finances, and even work from home. A good computer is something everybody needs.
Computer technology increases exponentially each year and even if your computer is only a few years old it may still be far behind the computers of the current year. Enjoy faster loading speeds with an SSD, do more at once with upgraded processors and memory, and enjoy more crisp and vibrant images on your larger monitor.
3 — Paying off Student Loans
Student loans are something that most people will deal with at some point in their life. Many young people today signed up for loans that they couldn’t avoid and now find themselves burdened under the weight of debt. Having debt can affect your ability to purchase a car, buy a new home, and can hinder your life in general because of the negative impact debt has on credit. Student loans also accrue interest so the longer you take to pay them off, the more you will pay.
The best thing to do when you get some money in a lump sum such as from a tax refund is to reinvest it in your future by paying down your debt. Student loans are excluded during bankruptcy so your only way of getting rid of them is to pay them off.
4 — Paying off Credit Card Debt
Even worse debt that student loan debt is credit card debt. Almost everyone has a credit card. Credit card debt can be just as damaging to your credit score as student loans. Having a poor credit score will impact your ability to do things such as start a business with a new business loan, buying a home, and just about any major financial decision. Take the time to evaluate your credit report, categorize things by importance, and consider paying off as much as you can when your tax refund comes.
Reducing the overall amount of debt you have can be a huge help in improving your credit score, as your credit-to-debt ratio will go up. The more credit you have available, the better it is for your credit score, so try to stay out of debt and use your 2020 tax refund for something that will have a positive impact on your life.
Pay off your credit card debt before paying off other loans that have lower interest rates or taking on additional credit.
5 — Home Renovation
If you’re like the average person, there is always something that needs to be done around the house. Whether this is a simple window replacement or an entire kitchen remodel, using your tax refund to make improvements around the house is always a wise choice. Doing repairs and home improvements can help increase the value of your home.
Sometimes it may be something that requires a contractor such as a new roof but most common home improvements can be done without any help. Consider finishing the basement, expanding the bathroom, or adding a laundry room. There are always improvements that can be made on any house and the 2020 tax refund is a great tool to help you do that.
From a used car in Wichita to a refurbishment of your house, there are a lot of sensible ways you can use your tax refund. Don’t waste it this year — use it to your best advantage and make 2020 a bumper year.
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