After tax time and your return comes in, you have to decide what to do with the extra money. Many people decide to reinvest the money back into their homes. They may upgrade old furnishings and appliances, bring more functionality into existing spaces, and increase the value of their homes. If you are trying to decide on a home improvement project to complete by using your tax return, check out the following suggestions.
Focus on Essentials First
While you may not like the look of your outdated kitchen cabinets or old outdoor landscape, you may want to focus the money on items that you know will need fixed soon. Replacing old appliances like your refrigerator or stove now while knowing that they might not last another year allows you to take your time and shop for the items you want.
Replace Water Heaters and HVAC Systems for Energy-Efficient Benefits
Upgrading old water units with tankless models, as well as updating heating and cooling systems, can help you save more water and electricity. You can use less electricity while having higher efficiency equipment that can lower your utility bills. Always consider replacing mechnical systems that are over 15 years to 20 years old.
Seek Simple Remodels That Make Homes More Livable
Replacing outdated cabinets, installing wood flooring, laying in new countertops and upgrading bathroom fixtures are simple home improvement projects to perform when you know that you won’t be getting a large tax return. These projects can instantly change the look of the space, make rooms more functional, and won’t require a lot of time or work to complete.
You can renovate your home so that it will be beautiful and comfortable for your needs. Using your tax return money allows you to make the changes you need to increase the value of your property.
Create a Home Inventory to Protect Your Possessions
It only takes one disaster, such as a flood or fire, to lose the possessions in your home. If you have created a home inventory, you can let the insurance adjuster know exactly what you had before the disaster as you can get compensated for the lost items in a faster manner. Check out this list on how to create a home inventory.
First, Check Your Policy Regarding What Is Covered
While people think every item will be covered at its face value, some insurance policies will have limits on what they will compensate. If you have rare and valuable possessions, such as jewelry and works of art, getting a policy rider can provide extra coverage.
Pick a Room and List Items
Record what the item is, where you bought it, the serial number, the date of purchase and any receipts that you kept. Take your time and don’t miss anything. Items such as clothing can have more generalized descriptions, such as how many jeans or dresses you have, if you didn’t keep any receipts.
Use Technology to Your Advantage
Having visual recordings of your items can provide extra proof for the insurance adjuster. You can easily take photos or videos using the camera feature on your smartphone. There are also apps available that help you make a home inventory.
List Items in Storage
Don’t forget to list the items you have in an offsite storage facility. These places can also become damaged in a disaster.
Update Your List Periodically
You will have more items the longer you live in the house. Make sure to update your home inventory list. Keep a copy at a different location, such as with a family member, if the original list becomes destroyed.
Once the home inventory list is made, it becomes easier to update and remove items that you no longer have. Keeping a home inventory makes it easier to become compensated, as you can return to your normal life faster after a disaster strikes.