Guest Author - Sharon Michaels
Kate Woods, our Tax Editor, recently wrote an article about the Tax Stimulus Rebates being mailed out to Americans this spring. I read it and realized that these upcoming Tax Rebates are excellent wealth-building opportunities to save, invest and maybe even make some money.
When I recently asked some of my friends what they were going to do with their rebate money, many eagerly said, “Spend it. It’s my money.”
Their response started me thinking and I came up with a few Tax Rebate wealth-building suggestions:
Take an honest look at your weekly, monthly and yearly expenses. Where can you trim off excess? Is there something you can pay off with the Tax Rebate to free up some extra money each month?
Is there a major expense or goal looming on the financial horizon? If you saved your rebate check for six months or a year, would it help make this expense or goal easier and may be even become a reality a bit sooner?
Pay down or better yet, pay off a credit card. How many of your credit cards have a balance? If you paid one off or down substantially with the rebate check, would the money you saved on interest be worth it?
Could you make extra payments on your mortgage? If you paid extra money each month, wouldn’t you be able to pay off the mortgage sooner and save money on interest?
Investing in your future is always a wise decision. If you take your Tax Rebate and invested it in an interest bearing retirement account, wouldn’t that give you peace of mind for the future?
How about supporting your favorite charity. Not only does it feel good to be helping others, it is a potential tax deduction.
Home improvement can prove to be a win-win financially. There are potential tax credits or rebates available if the home improvements you’re making are also energy saving. Plus, energy saving improvements will save you money on utility bills for months to come.
You’ll save money when your car is working properly. Is it time to have your car serviced? Spend money on good safe tires, a tune-up or other necessities that will keep you safe and save you money on gasoline.
Are there environmentally friendly home appliances or products you can purchase? These newer appliances are designed to save energy, money and the environment.
Wealth building is the about the day-to-day, month-to-month things you can do to invest in your financial future. Before that Tax Stimulus Rebate check arrives, write out how you are going to spend, save or invest it. Taking the emotion out of the rebate check before you even see it, could save and even make you money in the long run.
Note: Please check with your tax advisor regarding tax advantages. I am not giving tax advice.
You may want to take a few minutes to visit my website www.SharonMichaels.com for more empowering suggestions, tools and tips.