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What Should I Do with My Tax Refund?

Tax season is officially over, at least for most people. If you haven’t already, you’ll be getting your tax refund pretty soon, which is hopefully a good chunk of change. But what should you do with that extra money you now have? Here are some great ideas for what to do with your tax refund! 

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Address Your Needs First 

Is your car having problems? Does your home need immediate repairs? Have some medical problems that have been bugging you? Put your extra money towards things important things you need to be done sooner rather than later, like your health and other essentials. 

Strengthen Your Emergency Fund 

You should always have a rainy-day fund in case something happens where you need a sizable amount of money, like a sudden illness or accident. Use your tax refund to make your emergency fund a little stronger, or if you haven’t already, start one. 

Refinance Your Mortgage 

Refinancing your mortgage means paying for closing costs and fees, which can be expensive in the short-term even when the benefits of refinancing can save you thousands in the long-term. Use your tax refund to cover the closing costs to refinance so it goes towards saving you money in the future! 

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Tuck it Away in a High-Yield Savings Account 

If you don’t need your tax refund money right away, consider tucking it away in a high-yield savings account. You can find some accounts paying as much as 2 percent interest. Find some great high-yield accounts, here. 

Treat Yourself 

After you’ve taken care of your immediate needs and tucked some away into a savings account if you still have some left over, why not treat yourself? Invest in yourself and your happiness with your tax refund and you’ll love the benefits! 

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