|
|
|
|
|
|
|
Tip to use your tax refund wisely
Help improve your financial situation
CHICAGO -- The IRS estimates the average tax refund this year is around $2,500. That amount of money can buy a lot - like a nice vacation - but the Illinois CPA Society suggests giving serious thought to how you use your refund. Using your money wisely might improve your overall financial situation rather than just making you feel better now.
1. Pay-off Your Credit Cards.
If you've only been paying the minimum on your charge card bills use the refund money to make larger payments or pay off the balance on a card with the highest interest rate.
2. Build a Rainy Day Fund.
Put aside even a portion of the refund for an emergency or a seasonal expense like holiday shopping. If you know you have a special event like a wedding or graduation, or a major purchase like a car or a home in your near future, the money can be the start of a special fund.
3. Start an IRA.
No matter your age, it's always a good idea to invest in your retirement. Consider opening or adding to a traditional or Roth IRA.
4. Save for College.
Use your refund to start or add to a 529 college savings plan or other savings programs.
This year there's also a tax rebate to look forward to, so it makes sense to weigh all your options for this new found money to make sure you make the best use of it. However, if the money is really burning a hole in your pocket, treat yourself to a splurge purchase with half the money and save the other half.
|
|
|
|
|
