If you are thinking of buying a vehicle this spring or did during President’s Day Sales at your local car dealership, well you aren’t alone.
There has been a growing trend towards new and used cars being purchased during President’s Day weekend up through March. Many have accounted this trend to the tax refund period. Many are doing their taxes in January and February, and with that money they are using it as a down payment on a new or used car.
Some other popular ideas on what to do with your tax return are:
Seed your own business startup – this is an option for those that have an actual plan. Starting a business requires a lot of calculation and funding. So only do this if you know what you want to do, and you have a plan B as well.
Do some home improvements –this is a very common choice for many new and old home owners. Renovating a kitchen or bath, or adding a garage are a few good ideas to start with. But each homeowner is different. Just be sure to check with your local building inspector first.
Start a Roth IRA –this is a great idea for those young professionals that haven’t really done much planning towards a retirement plan. Not every employer will offer a good retirement package or plan for their employees, so having a Roth IRA is a great idea.
So now for a couple things you shouldn’t do with your tax dollars:
Have a huge party—now this might sound like a great idea for you young adults out there, but fact is one day or evening of excitement will never equal the value of owning a new car long-term or having a strong retirement plan.