FULTON, Mo. – 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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