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Putting your tax return back into your home is a smart idea, since your home is probably what got you the return in the first place. Anyone who has ever been a home owner knows that there is a never ending list of repair jobs and improvements that can be added to your home. If you have a problem such as your electrical is shorting out or your air conditioning doesn't work that's a priority and you need to fix it. If you have an eyesore such as a broken rain gutter or a dead tree, or whatever take care of that. If something is taking too much of your time such as watering the lawn or doing dishes put in the sprinkler system or the dishwasher.

Now that all the urgent necessities are covered. Before you install dual pane windows or upgrade to granite counters and stainless steel appliances, that you can't afford. Take a step back and decide what the truly best way to put the money back into your house would be. OK, ready, literally put it back into your house by taking the entire return and applying it towards principle on your mortgage. If your return is 5,000$ and you pay down principle each year, you will save tens of thousands of dollars in interest. On top of the extra principle at tax time, always pay double principle each month. That means if your payment is 1000.00$, your interest will be around 800.00$ and the principle will be around 200.00$. So throw in an extra 200.00$ towards the principle. You won't even notice these small financial sacrifices. But when you check your amortization schedule you will definitely notice owning your home free and clear in 5-10 years.

They say if you take off your shoes and walk across your lawn when you own the home free and clear, it feels different. I challenge everyone to make wise financial decisions now. So we can be truly wealthy and enjoy the good life. If your not wasting money on interest or mortgage payments, you are suddenly free to remodel, build, add-on, buy, whatever. Being wealthy and wise do go hand in hand.

Learn more about this author, Emma Nelson.
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