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Making the Most of Your Tax Refund

Tax season is here and that probably means you’ve found yourself with a nest of cash that wasn’t included in your budget. Here are a few productive ways to spend that money without feeling the guilt later on.

Debt: If you have credit card or mortgage debt, this is a chance to knock out a chunk of that debt and save what you would normally be spending on interest.

Invest: Consider contributing to an IRA, this is the perfect time to start saving for your retirement. If you have children, invest in a 529 plan, you’ll invest in your children’s future, and earn interest for years before the money is needed.

Save: Start (or build up) your Emergency Fund. It’s a good idea to have 8-12 months’ salary in savings in case of an emergency. The money from your tax return isn’t coming out of your current budget, so you won’t miss it, now’s a good time to start.

School: Take a college course or sign up for a crafting or baking class you’ve wanted to take.

Travel: I know that we love to travel when we get the chance, but it can be very expensive. Put your refund towards that trip you’ve wanted to take – without it digging into your budget. Where do you want to go?

Wardrobe: Updating your wardrobe can be fun, but it can also be costly. Use some of the money from your tax return to purchase a few new items to add to your current wardrobe. You earned it, why not treat yourself?

These are just a few suggestions, what ideas do you have? Feel free to share them below.

 

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