If you’re expecting a refund this tax season, what you do with it could be one of the most important decisions you make all year. Here are some options for using your tax refund that’ll get you further away from debt and closer to financial freedom.
Stash Away For Savings
A savings stash that covers at least 3-6 months of your living expenses means that you are protected in the event of a financial emergency, which could be brought on by anything from medical bills to unemployment. A tax refund is a great way to jumpstart a savings plan to ensure that you and your family are covered in times of financial distress.
If you have any debt, consider using a portion of your tax refund to pay it down or to pay it off completely. The longer that debt sits unpaid, the more you will owe in interest, on top of the outstanding balance.
Take Care Of Costly Repairs
Home and vehicle repairs are often postponed because of how costly they can be. If you are in need of repairs, or suspect that you will be in the near future, set aside some of your tax refund to cover the expense. If not, you will likely delay the repair even longer, which can result in greater damage and an even higher expense later on.
Invest In Yourself
If the above options do not apply to you, or if you find that you have some tax refund money left over, why not use it to reinvest in yourself and your family. There are several ways that you can invest your money, like by purchasing stock, contributing to a 529 plan for your children, or opening a certificate of deposit. You can also apply it toward courses or certifications that will help you earn more money.
How do you plan to use your tax refund? Tell us in the comments.
All data and information provided on this blog is for informational purposes only. The opinions, conclusions and other information expressed reflect the views of the author and does not necessarily reflect the views or positions of UniRush, LLC.