Financially Savvy Things to Do With Your Tax Return

Are you getting a tax refund this year? If so, congrats! Now, don’t go blowing through it without considering a smart way to use it.

Here are some strategies for handling your refund in a savvy way.

Build Your Fund

If you don’t have six months’ worth of expenses stashed away, use your refund to get closer to that goal. An emergency fund is a must, and a refund can be that savings boost you need to be better prepared for the unexpected.

Pay Down Debts

Struggling with debt? Use your refund to help get out of debt. Start by paying your highest-interest debt first and then moving on from there. 

Invest

Let’s say you have a solid emergency fund, and you are debt-free. Use that refund to save and invest for retirement. 

Save

If you’re not ready to decide what to do with your refund, make sure the money is not sitting in a checking account. Instead, transfer it to a high-yield savings account so that it can grow while you decide on your strategy.

Do One Thing: Take your time to figure out the smartest way to spend/save your tax refund.