Financial Tip of the Month
10 Tips for Spending Your Tax Refund Money
Can't wait to get your tax refund? Don't spend it all in one place! Here are 10 tips for spending your tax refund money wisely:
- Save for an Emergency: You can't always predict life events that will affect your finances, but you can prepare by establishing an emergency fund. Use your tax refund to start saving for the future.
- Pay Off Debt: If you have fallen behind on your bills, use your tax refund to help you catch up. Or, pay off some of the principal on a loan balance-this will reduce the interest charges, saving you money in the end.
- Save for Retirement: Save for your retirement by putting some of your tax refund in an IRA. This is a great way to grow your retirement and help ensure you enjoy your golden years.
- Invest in Your Career: Have you been thinking about going back to school to earn a few more credits or your next degree? If so, you can use your tax refund to help fund your education.
- Improve Your Health: Use your tax refund to get healthy. Start buying fresh organic fruits and veggies or invest in a gym membership and make a commitment to actually go!
- Tackle Big Projects around the House: House repairs are difficult to afford when bills pile up. Use your tax refund to get rid of those termites, paint your house, upgrade your plumbing or whatever else your house needs.
- Make Your House Energy-Efficient: Use your tax refund to make your home more energy-efficient. Start buying incandescent light bulbs with LED or make a bigger investment by purchasing energy-efficient appliances.
- Buy Life Insurance: Consider buying life insurance to protect your spouse and children in the event of your death. A good policy will cover funeral costs as well as your household's expenses for a year or more.
- Save for a Family Vacation: Family vacations are not only fun, but also provide a good opportunity to bond! Whether you go to a relaxing beach or a national park, this is a great chance to make some memories together!
- Give to Charity: During a down economy, charities are especially in need of money because people are donating less. If you do not have debt that you need to pay off, give some of your tax refund to your favorite charity.
Source: Can Do Finance