Top Financial Moves to Make This Year Maximize Your Tax Refund
Receiving a tax refund can feel like a huge, unexpected bonus. While it’s tempting to splurge on a lavish vacation or a new gadget, it’s important to use the extra cash wisely to safeguard your financial well-being. Here are some smart strategies to consider if you find yourself with a tax refund this year. PAY OFF HIGH-INTEREST DEBT One of the most impactful uses for your tax refund is to reduce or eliminate high-interest debt, such as credit card balances, payday loans, or high-interest personal loans. The average credit card interest rate hovers around 27%. By paying off these debts, you essentially earn a return on your money equal to the interest rate you would otherwise be paying. For example, paying off $1,000 of credit card debt at 27% saves you $270 in annual interest. BUILD OR BOLSTER AN EMERGENCY FUND It’s often recommended that you have an emergency fund sufficient to cover 3–6 months of living expenses. This fund can be a financial lifesaver in cases of unexpected job loss, medical emergencies, or urgent home repairs. Placing your tax refund in a high-yield savings account helps provide a cushion that can keep you afloat during tough times without having to rely on credit.
INVEST IN YOUR FUTURE Consider using your refund to invest in a retirement account like an IRA or increase your contribution to a 401(k) if your employer offers one. Not only does this help build your nest egg, but it can also reduce your taxable income for the year if contributions are made on a pre-tax basis. Over time, the compound interest from these investments can grow significantly, making this a particularly powerful use of your refund. SAVE FOR A SPECIFIC GOAL If you have a specific financial goal, such as saving for a down payment on a house, a child’s education, or a dream vacation, putting your tax refund toward these savings can help reach your goal faster. Dedicated savings accounts for specific goals can keep you motivated and make large expenses more manageable. No matter what you choose to do with your tax refund, be sure it aligns with your overall financial goals and current needs. Thoughtful planning can transform this annual windfall into a tool for achieving financial stability and long-term goals!
SUDOKU
OLIVE OIL CAKE WITH HONEY-YOGURT CREAM AND STRAWBERRIES
Inspired by FoodAndWine.com
INGREDIENTS
1 1/2 cups almond flour 1/2 cup all-purpose flour
3 1/2 tbsp lime juice 1 tsp vanilla extract
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1 tsp baking powder 1/2 tsp baking soda
2 qts fresh strawberries, quartered 1 cup plain whole-milk Greek yogurt
1/2 cup granulated sugar
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4 large eggs
1/2 cup extra-virgin olive oil
1/4 cup heavy cream
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1 tsp lime zest
1/4 cup honey
DIRECTIONS
1. Preheat oven to 350 F. Lightly grease 8-inch springform pan. Line with parchment paper and lightly grease. 2. In medium bowl, whisk together flours, baking powder, and baking soda. 3. In a stand mixer, whisk sugar and eggs on medium-high, about 3 minutes. Add oil, lime zest, lime juice, and vanilla. On low, gradually add flour mixture until just incorporated. 4. Pour batter into pan. Bake until golden brown and toothpick comes out with crumbs, 40–45 minutes. Cool for 10 minutes. Invert cake out of pan onto wire rack and let cool completely. 5. Whisk yogurt, cream, and honey. Top each cake slice with spoonfuls of yogurt mixture and strawberries.
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