FIVE SMART USES FOR
YOUR TAX REFUND!
Nearly eight out of ten U.S. tax filers will receive
a federal tax refund this year. “Smart use of your tax
refund can start you on the path to long-term financial security,” says Ken Walsh, President. “Instead of going on a spending spree, take a
moment to evaluate your financial situation and decide on where those dollars
will make the most difference.”
Save for emergencies. Open or
add to a savings account that serves as an “emergency fund.”
Ideally, it should hold about three-to-six months of living expenses in
case of sudden financial hardships like losing your job or having to
replace your car.
Pay off debt. Pay down existing
balances either by chipping away at loans with the highest interest rates
or eliminating smaller debt first.
Save for retirement. Open or increase contributions to a tax-deferred
savings plan like a 401(k) or an IRA.
Put it toward a down payment. If you intend to buy a new
home in the near future, putting your tax refund toward the down payment
is a smart move.
Invest in your current home. Use your refund to invest in home improvements that will pay you back in the long run by
increasing the value of your home.
This can include small, cost-effective upgrades like
energy-efficient appliances that will pay off in both the short and long