5 Good Ways to use your Tax Refund
Posted by Gabe Graumann on April 14, 2008
Are you getting a tax refund this year? If so, there are plenty of businesses that would love for you to come do a shopping with that check of yours. But before you rush out there and slap your hard earned money down for whatever tickles your fancy, try one of these less thought of options that will return bigger advantages for you and your family:
1) Pay off debt. If you’re working your way out of debt, this is a great way to speed up that process as many people receive several thousands of dollars back. This would go a long ways in meeting your goal.
2) Establish an emergency fund. Every family should have an emergency fund of 3-6 months of living expenses set aside for a rainy day. Your refund will help get this built up quickly without touching your monthly budget.
3) Fund your retirement. Make your refund work for your future by placing it in your IRA account for this upcoming year, or max out one of your other investments.
4) Fund your children’s college. If you have young children that you would like to see go to college one day, help make that dream a reality by investing in college savings plan like the 529. A few thousand dollars early on goes a long ways!
5) Make a memory. If all the above has been done, try building a memory with a family vacation instead of the typical purchases. Try traveling with your family or spouse to a new destination that you’ve always wanted to go to, or even just across town for an evening away from the norm. Make a memory!
