All the hassle and heartache of tax season can easily be forgotten if you are one of the many Americans due for a tax refund. But what to do with that nice plump check, which amounts to $3000 on average?
One good idea is to put your tax refund back into your home. Here are a few choice suggestions that may even help you save a few bucks for next year when tax season rolls around.
Many experts recommend that you create an “emergency buffer” to face the impending possibility of losing a job or facing the cost of medical services. While this is obviously a good idea, homeowners should also consider the “emergency” needs of their home.
Keeping some emergency cash on hand to face the unexpected can soften the financial blow of a broken refrigerator or the costly need for roof repairs or replacement. Between 1 – 3% of the initial price of the home should be squirreled away each year and a tax refund is the most convenient way to hit that mark.
Those facing a mortgage already know the advantages of paying it off fast. First and foremost, the interest will not be as hard a hit if paid fast. Equally inspiring is the option to begin saving for the next best thing – a trip to Aruba, that fishing boat, or even college funds!
Check with the bank handling your mortgage and ask about their options for early payment. Most will be more than happy to accept extra funds along with the regular payment, and the tax return can provide this little extra.
So, your refund was on the short side this year! Well, chin up, there are plenty of ways you can maximize this smaller amount by buying low-flow appliances and slashing the costs of your domestic expenses.
One idea is to install a low-flow showerhead that can reduce your water usage by as much as 25-60%. This will save you energy, and your water heater won’t have as much water to heat up for each shower. Installing low-flow showerheads is pretty affordable, so this is a smart way to apply a small refund to your home.
Did you know that a full 20% of all flood insurance claims are taken out by property owners living or working in low to moderate risk zones? If it rains, it can flood; simple as that. The average flood insurance policy will set you back $600 each year so tax refunds can usually cover this and then some.
Installing a storm door will cost you around $100 – $300 and can help to reduce heat loss and the extra energy expenses they include. Almost 11% of the warmth in your average home is lost through doors and windows. Most could be recouped with a strategically placed storm door.
Even better, you’ll take advantage of tax credit which will cover 10% of your cost of building materials, not exceeding $500.
If you would like more information on outfitting your home, or about buying or selling a home, contact The Damron Group located in San Marcos, TX.
For over 30 years, the Damron name has represented the highest level of customer care, area expertise, and industry knowledge in the San Marcos, Texas real estate market.