What to do with your tax refund… you could either save or spend. The average refund this year was around $3,000 which gives you options on how to spend that new found cash in your pocket.
First and foremost, spend it on something you need. If you are having health problems, car trouble, or just need a new microwave go ahead and use your refund. Anything you need big or small, you now have that extra money.
Another way to use your cash is to start an emergency fund. You can use your refund to build your emergency fund or add money to it. This is a great way to have a safety net for the unexpected things in life.
An obvious way to spend your tax refund it paying off your credit card debt. It’s hard not to spend your money on fun things, but paying off your credit card balance is a smart move that will help you save money on interest. If you have multiple cards, the best thing to do is pay off the highest interest rate first, then work your way to the next card. This will help you stay stress-free and organized.
One beneficial way to spend your new cash is to invest in your home. Add a new back splash, refinish your hardwood floors, or replace an appliance. Any refinishing touches on your house will increase the value which will help you in the future if you put your house on the market.
Help others in need and give to charity. Giving back the community will make you feel good and you can also file your tax return in 2014 mentioning your charitable contributions if the size is deductible.
Although it is tempting to blow your money on a tropical vacation, you will thank your future self for spending wisely!