How To Use Tax Refund Wisely?
Did you ever receive your long awaited tax refund, yet you don’t know how to spend it wisely? Well, you
might have thought about splurging it on shopping or eating in a fancy restaurant for dinner or other
luxury items. But have you considered putting it to good use? Tax refund usage should be wise because
first of all, it is not free money. It is your hard earned cash that are just coming back to you because you
paid more than you were actually supposed to. So it is very important to invest these funds for future
Here are some ways to spend your tax refund wisely.
1. Pay off your existing credit card debt-put your refunds to good use and finish off your debts. This
will help you reduce the extra money that you have to pay for the interest, especially if you can
only afford to pay the minimum amount.
2. Start saving up for an emergency fund- this will definitely help when something important comes
up. And as we all know, emergencies can happen anytime and you’ll never know how much you’ll
need this fund unless it happens, so it’s best to be prepared. Make sure you have savings for at
least 3 to 6 months.
3. Pay down your home equity line of credit especially if your interest rate is high to avoid a build in
4. Allot more for you 401k contribution and start on investing more for your retirement plan. Also,
funding for your retirement will help you with your taxes for the following year.
5. Although you won’t be able to put your money directly to your 401k account from your tax refund.
You can save the refund to offset a higher contribution or you can put it in your IRA if you are
qualified for it.
6. Save up for your children’s college fund. Your child’s education is very important you might as
well save up for it early on because school tuition is increasing yearly and it really is expensive.
This will keep your children from acquiring student loans to fund for them.
7. You can up to $ 5,000 by getting the Sunday’s issue of The Augusta Chronicle because they’re
giving away coupons. The RedPlum is also offering coupons for you to save up on money. Take
advantage of these coupons as it will save you tons of money in the long run.
Follow these tips and give you credit score report and credit report a boost. Make sure you do a credit
check regularly to keep track of it. Doing the things mentioned above will definitely improve your credit
score. Always put your credit score to good use, again, don’t forget that you worked hard for your tax
refund and that it isn’t free. This is also your chance to practice financial responsibility at an early point.
Follow these tips and enjoy a better future.
Want to have a successful budget? Follow up the tips and tricks about how to stick with your budget. Get
a credit score free and credit report regularly throughout the year to keep your score high.