Tax season is almost over and many people will be receiving a tax refund in the coming days. If you’re expecting a tax refund this year, we have some ideas on smart ways you can use your tax refund:
- Pay off credit card debt. Nothing feels better than paying off your credit card. Getting rid of the debt will help you save money in the end, especially if you’re paying a high interest rate. It will also increase your monthly cash flow by eliminating the monthly payment!
- Build your emergency fund. Consider setting the money aside in case an emergency were to happen. It’s always smart to have an emergency fund as a cushion for those unexpected events.
- Put towards your retirement savings. Your tax refund can help strengthen your financial future by starting or increasing your retirement savings. Some options are starting or adding to a Traditional or Roth IRA.
- Build college savings. It’s never too early to start saving for college for your children or yourself. You can put your tax refund in a 529 Plan for your children to help lay the foundation for their college education.
- Prepay your vacation. Want to spend the money on something fun? Go on the vacation that you’ve always wanted to, but never had the money for. Instead of having the stress of paying for the vacation at the end, prepay for it and take your vacation stress free! You can even save some money by booking early!
Whether you plan on spending or saving your tax refund, there are plenty of ways to do both. Are you receiving a tax refund this year? If so, how do you plan on using it? Share below!