Use Your Tax Refund Wisely

With tax season drawing to a close, many of us are starting to wonder what we’ll do with our tax refunds. Don’t let your return slip by! Use the tips below to decide how you’re going to spend your return today, so that you’ll be ready when the time comes.

Pay down debt

If you’re keeping track of long-term debt in EEBA, your tax refund is a great opportunity to get ahead. Allocate what you can now to pay down your debt, and you’ll save each month with lower payments. The average credit card charges ~15% interest. Investing $500 now to pay down your debt can save you over $1,000 over 5 years.

Save towards a goal

Saving towards a long-term goal? Use your refund to catch up or get ahead on your savings plan. If you don’t have a long-term savings goal, start one! Don’t be “surprised” the next time the holidays come around, or your property tax comes due.  Set goals in EEBA to budget for these large, but predictable expenses.

Be generous

Be generous with your money to experience joy and disarm fears of not having enough. If you already make donations to a charity, that’s great! But feel free to be creative in how you give, you can take a young person out to lunch, or treat your spouse to something nice. Have fun with your generosity!

Originally posted on 4/9/2012.

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