10 Smart Ways to use your Tax Refunds
Are you expecting a big tax refund this tax season? Before spending all of it, here are 10 smart ways to make the best use of your Tax Refunds.
- Pay down your debt: Every penny counts. Whether you have a student loan or home loan, it is a smart move paying down your debt.
- Contribute to an Individual retirement account
- Contribute to a health savings account
- Invest in yourself: Learn a new skill or improve your existing skills that may be relevant to your occupation. Investing in yourself may be one of the best choices you can make.
- Donate to charity: Nothing is more fulfilling than sharing some of your wealth with the less fortunate. Plan to set aside a small % to charity.
- Plan for an emergency fund: Three to six months of income should be set aside for emergency fund. Contribute part of your tax refunds towards an emergency fund.
- Contribute to 529 plans: If you have children, you can set aside a portion of the tax refunds towards their 529 plans
- Save for your home down payment: If you are planning to buy a home, you can save part of your tax refund towards the down payment.
- Buy an energy efficient appliance: It may help you save energy costs in the long run.
- Save for your next vacation or next big expense