Five Smart Things to Do with Your Tax Refund
Do you get your tax refund and just blow it immediately? There are some smart things you can do to make your refund work for you.
1. Pay off some debt, especially credit card debt. Because you end up paying so much in interest charges, paying down a high interest credit card is your best bet.
2. Put it away. Whether you are saving for a vacation, retirement, or college for your kids, putting extra money away now pays off in the long run. The longer it is earning interest, the larger the fund will be in the future.
3. Use it for a necessity. You may have been waiting to get those new tires or to go to the dentist. Now is the time to do it.
4. Make a donation. If you’ve been wanting to support a charity near to your heart, but haven’t had the funds, do it now. It will help on next year’s taxes as well, if you itemize and take the deduction.
5. Treat yourself. If you find that you still have money left over, do something nice for yourself that you’ve been putting off. Take a trip, throw a party, or buy a loved one a gift. After practicing some fiscal responsibility, you’ll deserve it.