Financially Savvy Things to Do With Your Tax Return

Here are some ways to put your tax return to good use.

Are you getting a tax refund this year? If so, congrats! Now, don’t go blowing through it without considering a smart use for it.

Here are some strategies for handling your refund in a savvy way.

Build Your Fund
If you don’t have six months’ worth of expenses stashed away, use your refund to get closer to that goal. An emergency fund is a must; a refund can be that savings boost you need to be better prepared for the unexpected.

Pay Down Debts
Are you struggling with debt? Use your refund to help you get out of debt. Start by paying your highest-interest debt first, and then move on from there.

Invest
Let’s say you have a solid emergency fund and are debt-free. Use that refund to save and invest for retirement.

Save
If you’re not ready to decide what to do with your refund, ensure the money is not in a checking account. Instead, transfer it to a high-yield savings account so that it can grow while you decide on your strategy.

Do One Thing: Take your time to figure out the most thoughtful way to spend/save your tax refund.

Chris O'Shea/SavvyMoney