It’s that dreaded time of year again…. Tax Time! Have you filed your taxes yet? Will you be receiving a tax refund this year? If so, how you will you be spending your money. If you are planning on putting it directly into your checking account, you are on a fast path to losing track of where and what you are spending it on! Instead, get smart and create a plan for your refund. Check out these 5 tips to help you spend your tax refund wisely!
1. Create an Emergency Fund
In case of a financial emergency, it is ideal to have money saved. That way, you can get out of a situation without breaking the bank or having to turn to a loan for help.
2. Pay Off High-Interest Debt
Use your refund money to pay off that high interest student loan, auto loan, or high-interest credit card debt. It never hurts to get a head start on paying off your loans, especially ones with high interest rates.
3. Fund an IRA Account
If you think you are too young to start thinking about retirement, think again! Saving for your retirement early is one of the best things you can do for your financial future.
Use the money to open a higher-interest earning account at your credit union! There are several options when it comes to high-interest earning accounts, and you can use the money to help grow your savings early.
5. Spend it on Something You Need
Are you having car trouble, did your computer crash, or have you put off dental work? You need to take care of these essentials, and now that your refund is here, you can cover the cost.
Are you getting a refund this year? What do you plan to do with it? Are you smart with your money, or do you tend to quickly spend your refund?
Until Next Time,