Tax Day is just around the corner, and if you’re like millions of Americans, you have a refund coming! Since I’m self employed, my refund days are over— but there was a time when I received a hefty chunk of change back from the IRS. As tempting as it might be to splurge all of your refund dollars on a tropical vacation or other “wants”, there are smarter ways to distribute your tax refund. Here are a few.
Save for College Tuition – The rising costs of college are mind blowing. Even if your child has a savings account for tuition and books, living expenses can double, or even triple, the cost of education. Taking some of your tax refund to invest into your child’s college education is always a good idea.
Pay Off Credit Cards – If you’re not careful to pay off the full balance of your credit card each month, the amount owed can quickly snowball with interest and late fees. I think most of us have been there at one time or another. Using your tax refund to pay off credit cards or other bills is one of the best ways to use your funds. There’s no greater feeling than being debt free.
Put in an Emergency Fund – You know that saying, “save a penny for a rainy day”? My experience tells me that rainy days never come around when you have money in the bank. Life is full of surprises— you never know when you’re going to need extra cash for, well, anything— having an emergency account of money, preferably with at least 6 months of living expenses is one of the smartest accounts you can have. You’ll thank yourself later.
What about you? Will you be getting a tax refund is year … and if so, how do you plan on spending it? If you’re like me and still haven’t filed your taxes, be sure to check out coupons.com’s Tax Season Deals and Sweepstakes.
This post and giveaway is brought to you by Coupons.com. All opinions are my own.
