Making The Most Out of Your Tax Refund

Kimberly Bean
Kimberly Bean
Published on March 15, 2016

Your tax refund has arrived! What should you do with it?

The options are endless: Take a vacation. Upgrade your TV. Do something luxurious.

But with tax refunds averaging $3,000, one of the most efficient ways to spend your refund is to reinvest it in your Southern Maryland home. No matter how much you’re getting back, there are ways to use it to make improvements to your home.

Pay off debts

Have you taken out a loan to start a business or renovate your house? Using your tax refund to pay off or pay down your loans can save you from accumulating further interest on the loan. Once your debts and loans are clear, you can feel more comfortable about your financial position.

Make repairs or renovations

We all have a wish list of home repairs and renovations in mind. If you don’t have the money to pay for your project, consider using your tax refund for this purpose. Minor projects can be paid for without the need to take out a loan or set aside additional money.

What kind of project are you thinking of? Your tax refund could help you pay for security upgrades or aesthetic improvements. In any case, you’ll be reinvesting in your house.

Purchase flood insurance

Through the National Flood Insurance program, the federal government offers coverage for an annual fee of $700. Considering how massive the problem can be and the damages flooding can cause, your refund may easily cover the fee for this insurance.

Flooding can happen any time it rains, and it can leave you with a sizable repair bill. Plus, homeowners insurance does not cover floods that occur because of rising water. Using some of your tax refund to buy flood insurance can give you peace of mind and financial security. You’ll know that in the event of a flood, your losses will be recovered.

Make energy-saving improvements

One of the biggest costs in your home are energy costs, and they continue to rise every year. Lighting, showering, and air conditioning and heating systems consume water and electricity – which you have to pay for. Old and worn out systems further increase energy consumption.

Making simple fixes can save you money in energy costs. One of the easiest is to install water-efficient faucets in kitchens and bathrooms and a low-flow shower head in the shower. Replace old lights with LED appliances with fixtures. Newer, more energy-efficient appliances can also save you money, as will sealing air leaks, replacing old water heaters, and adding insulation.

No matter how you decide to spend that tax return, take stock of your needs. Whether you opt for paying off debts or making home improvements, you should tend to the most urgent need first.

Hughesville MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309

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