University of Missouri Extension family financial education specialist Vivian
Mason says homeowners who are getting an income tax refund have an opportunity
to invest it wisely.
“Pay yourself first,” Mason recommends. She suggests that refund recipients
set aside a portion of their refund in an emergency fund. “Life happens. Things
happen,” she said. Even a small reserve for emergencies can bring peace of
mind.
MU Extension has declared February “Missouri Saves Month” as part of
Missouri Saves, ongoing program to help individuals and families save and build
wealth. Missouri Saves is a part of the national America Saves campaign, which
will observe America Saves Week, Feb. 25-March 2.
After establishing an emergency fund, homeowners might use remaining
dollars to save money and protect the value of their home. Buying new windows,
storm doors or programmable thermostats can bring long-term savings on monthly
utility bills. This might be an opportunity to replace an inefficient furnace or
patch a leaky roof. Spending money on preventive maintenance is one of the best
ways to avoid spending larger amounts in the future, Mason says.
Homeowners also can improve the value of their homes with less costly
improvements, she said. Whether it be updating the entrance to your home with
potted plants or a new mailbox to enhance curb appeal, or adding a fresh coat of
paint inside, small amounts of money can add big value if you decide to sell or
refinance.
Those wanting to be homeowners may reap benefits from paying down credit
card debt to improve their credit rating. By improving debt-to-credit ratio,
prospective homeowners can increase their chances of loan approval at lower
rates.
Prospective homeowners can also start a savings account dedicated solely to
building a down payment, she said.
For more information about Missouri Saves Month, go to www.missourifamilies.org/mosaves.
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