Thank you to our friends over at Earnest for sharing these tips. We all need a little advice on how to spend the extra cash responsibly.
We all know what April means….Tax Day. While filing your taxes can be a hassle, especially if you end up having to pay additional taxes, some people look forward to receiving a tax refund. If you’re one of those people, you may be planning to spend your refund on that pair of shoes you’ve been eyeing or that designer handbag you’ve been drooling over for months. Before you go out and buy all of the items on your wish list, you should consider using your refund to help you get ahead financially.
We all know how easy it can be to spend our tax refund in ways that are less than optimal. The most important thing to do to utilize your refund in the best way is to develop a plan for how to spend your refund. This will prevent you from spending money on things that you don’t really need. The next thing you should do is look at your savings. Do you have an emergency fund? If not, consider putting a portion of your refund into an emergency fund savings account.
Your tax refund can be used in several other ways to help you out financially in the long run. One of these ways is to pay off some of your high interest debts, such as credit cards or student loans. You can lower these high interest debts even more by refinancing them. Companies like Earnest can help you save even more money by lowering your interest rates and monthly payments by refinancing your student loans.
Now that you have a smart plan for your tax refund check, set aside a small amount to treat yourself with. Let’s face it, you work hard and you deserve it! Keep in mind that you should not treat your refund check like a bonus or spend your entire refund frivolously.
Check out the guide below to learn about more tips on how to better utilize your tax refund.