If you are expecting a refund this tax season, consider these tips for using it wisely.
- Pay down credit card debt. Attack the card with the highest interest rate first. If you can pay off the card in full, that’s even better.
- Build an emergency fund, by putting some of that refund into savings. Even a modest amount as little as $300 can help soften the blow of an unexpected expense.
- Invest in a retirement plan. Enhance your future now by using your tax refund to invest in a tax-deferred retirement plan. If you have an Individual Retirement Account (IRA) make a one-time sizable contribution, or save your tax refund for a series of smaller investments over several months.
- Be good to your car and home. Spend your tax refund on costly, but necessary, repairs to your home or vehicle. Replace that leaky roof or buy new tires for your car.
- Treat yourself. If you have covered all of the above, then reward yourself – but do so responsibly. Spend your tax refund on a well-deserved vacation or buy yourself something you have been saving for.
By: Brenda Langdon
