Most of us will be expecting the Tax refund soon, if not already filed your returns, plan not to miss the June end date. It is your money do not skip claiming it. Use the refund amount, however small, to its best advantage!
What did you plan to use it for? Shopping? Let’s put it to better use by investing it for securing the future. Use it to maintain financial discipline. Here we listed out the best possible ways to use tax refund.
Clear Your Debts
Use your tax refund to get freedom from debts or credit card loans. Repayments show a positive impact on the credit score. Credit utilization is crucial for improving your overall rating. However, check if you are prepared for a rainy day. Else, you may again look for a loan, having back into the circle.
Build Emergency Fund
Emergency funds are as important as debt repayments to deal with an unexpected crisis. Use your tax refund to create a financial safety net as a guard. The emergency fund will not allow you to shatter because of an unforeseen situation like job loss, major health issue, etc. Experts suggest creating an emergency fund worth three to six months’ of salary to lead an undisturbed life.
Add to Retirement Fund
Are you not building a retirement fund? Then you are not helping yourself to lead a dignified retired life. Start building retirement fund from now on and keep contributing towards it regularly to lead a contented and self-sufficient life later on. After all, you deserve it!
Invest in Mutual Funds
By investing in mutual funds through a diversified portfolio, you can allow your money grow. Long-term mutual fund investments can beat the market fluctuations and yield decent returns when invested through right channels. For expert advice on well-diversified mutual fund investments through right platforms, approach ArthaYantra. Avail holistic services for complete financial planning. Secure your financial future.
Online fiduciary ArthaYantra, also advises on proper tax planning so that you pay the exact tax amount to the government. Pay nothing less and nothing more. Avoid filing and waiting for tax refund. Rather divert the saved amount to savings, deposits or investments. Learn more about saving tax under Section 80C and tax-saving beyond 80C.