Tuesday, we looked at 4 reasons to file your taxes as soon as you can, so here are some smart ways to spend your money once you get a refund…
Pay down your debt: This may be the smartest choice when deciding what to do with your refund. Decreasing your debt helps alleviate the interest you’re paying, which will be a huge weight off your wallet and credit score. Debt can feel like a mountain, so use this opportunity to start digging yourself out from under it.
Put it into retirement: If you’re not steadily adding funds to your retirement account (401k, Roth), you’re doing yourself a disservice. Even if you’re young and it doesn’t seem that important right now, you’ll be 65 before you know it.
Build up an emergency fund: Iff you’re doing a good job of saving for retirement, congrats on that. But you may get yourself into trouble if that’s all you’re saving. Take this opportunity to use your tax return to create an emergency fund in case things go south (lose your job, car dies, etc).