5 Financially Smart Ways to Use Your Tax Refund
With Tax Day around the corner, you might be seeing more and more advertisements urging you to spend your tax refund. While it’s alright to treat yourself now and again, consider these smart tips for how to put your tax refund to good use:
1. Pay off debt. Whether it’s lingering medical bills, student loans, or a credit card balance, putting your tax refund toward your debts will help you get that much closer to leading a debt-free lifestyle.
2. Put it in savings / emergency fund. Do you have enough money set aside to cover a potential medical emergency, job loss, or costly home repair? A good rule of thumb is to have three to nine months of income stashed away.
3. Add to your child’s college fund. With the ever-growing cost of tuition, give your child a financial leg up by setting aside money now to help fund their college education down the road.
4. Pay extra on your mortgage. Putting more money toward your mortgage payment each month means you’ll save on interest over the long term.
5. Purchase life insurance. Life insurance can help protect your family for a relatively low cost. If you don’t already own a life insurance policy, schedule an appointment with me and I will be happy to walk you through the process.