Friday, 20 February 2009 14:14
by
Andy M
If you haven't read the previous blog post, read it first and then think about these five options for your tax refund.
1. Stop the slow erosion which occurs when the refund is just put into the checking account. A few months later it’s gone and you have no idea where it all went. Move it to a savings account or money market account until you have decided on how to best use your windfall.
2. Make a smart choice by either paying down or off your highest interest debt or using it to start your rainy day fund so that you have a financial cushion for any unexpected financial emergencies.
3. Already have the rainy day savings funded? Then make a smart retirement plan investment with the refund. Retirement savings should be a goal we think about the day we first start working.
4. Kids off to college soon or even not very soon? Use your tax refund to start an education savings program or give your current program a big boost.
5. Make home improvements that can save you money like energy efficient appliances or new windows or some other cost saving home improvement.