Have you gotten your tax refund yet? It can be an exciting time when you come across some excess money! There’s no harm in treating yourself and splurging a little, but it’s also important to be smart about how you use your refund to make it most beneficial for you or your family. Here are some simple but effective ways you can spend your tax refund!
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Far too many people don’t have much money set aside in case of the surprise major expense. Having little in the rainy-day fund can mean falling into debt quickly from one event and start you on the path to financial disaster. If you haven’t started one yet, now’s the time and if you have its always good to pad it a little.
Take Care of High-Interest Debt
Next up on the list is paying off that burdensome debt. The first kind of debt you should be wiping off your ledger is the high-interest stuff that can really put a dent in your monthly budget. Student loans, credit card debt and payday loans should be targeted first.
Stash It Away in Savings
It’s always smart to also stash away some of that extra tax refund money for the future. If you haven’t started a retirement fund, now is a great opportunity. Or, if you have children, starting a college fund for them with some seed money is great too!
Invest in Stocks
Obviously, the stock market is not as safe as simply stowing your money away. But, if you’ve got little to no debt and strong savings accounts, it can be worth it to try and have your money make money. Be sure to do your homework and invest in stocks that are safe though, don’t just pick a stock because it has a cool name!