Smart Ways To Use Your Tax Refund

I know we all say that, “When I get my tax refund, this time I am going to save it and do some real good with it!” What happens though? Most commonly it is spent on useless items and is never seen again. We all know how bad the economy is and the “every cent counts” attitude is becoming more noticeable and that’s why this weeks iLife blog is on smart ways to use your tax refund money. As the Grail Knight of the First Crusade in Indiana Jones and the Last Crusade would say, “Use Wisely…”

The first great thing you can do is build up that emergency fund. Surprises and unforeseen events both good and bad can happen at any time so it’s always wise to be prepared. Take it from the guy who got a flat tire and had to replace it and two others, emergency funds are always good to have. It is always good to have at least a few months rent saved up in case of emergencies, but with the economy and many people losing their jobs the more months you can save up the better. Having an emergency fund is not just for the bad situations. I am not telling you to blow ALL of your money on that trip your friends are taking and want you to come on, but a small percentage would be acceptable. Remember guys, do not get crazy with your emergency funds!

This next recommendation is for only some people and they know who they are, people in debt! Take that tax refund and chop down that debt you have on that high interest credit card. People are spending more money on interest rates every year, but your tax refund can be a blessing! Chopping down that money you owe will help you in the long run with simply getting rid of that debt and not having to pay more money for a high interest rate. I know it might be hard handing over that large amount of money you get back but remember you can always allocate some for yourself and then some for your debt, but remember paying off that debt comes first!

The last recommendation is my favorite, FIX WHATS BROKEN! Most people over look small things in their home and apartment that are broken and in need of repair. Tax returns are perfect for getting the right person you need to your home and repairing what needs to be done. Have a crack in the wall, no problem! Is your backyard suffering, no problem! Now don’t go out and buy a 50" flat screen because you think you television is blurry, remember to keep it in control!

It is always nice to get that refund check in the mail but whatever you decide to do with it just remember to make it count. If you have any tips or want to share how you spent your dough give us a shout back because we are here for you!