For those of us that purchased homes this year, keep an eye on your mailbox because your tax credit is probably on the way if you have not received it already. Do you have a plan? For many of us, getting a check this large ($6,000 – $8,000) isn’t an everyday occurrence. It would not be wise to start spending without a plan. The road to financial security is a mapped out path. So, what’s your plan? Here are some categories and ideas:
- Tithe, offering, or other charitable donation
- Is your emergency fund fully funded? Your credit can help get you closer to your goal
- Do you have a home maintenance savings account
- Any other type of special savings account using ING Direct or your financial institution of choice
- Need to do some improvements or maintenance to that new home?
- Energy efficient home improvements
- Pay off debts or make a big dent in them
- Have some fun!
- Add a little extra to your retirement accounts if they aren’t maxed for the year. Or start one!
- Consider social lending if you live in a state that allows you to use sites like Lending Club
- Purchase stocks, mutual funds, ETFs or a combination of them all.
Consider speaking with a financial advisor if you’re not sure where to start.
1. Let the money sit in a savings account for a while. Especially if you’re not used to saving. Build discipline here.
2. Don’t plan anything that requires spending the money before you have it.
What about you? How are you planning to use your credit? Have you ever received a large payment? What was your gameplan?