Investing

What Should You Do With Your Tax Refund?

Image by Steve Buissinne from Pixabay

Pay Off High Interest Debt

If you have any high interest debt it would be best to pay that off with your refund check. This could free up extra money so you can save it, invest it or increase your emergency fund.

Put It In Your Emergency Fund

If I didn’t have an emergency fund or if it was low, I would definitely put my tax refund into it. It’s more relaxing when I have a decent amount in my emergency fund and I know that if something does happen I will have nothing to worry about.

Invest It

You can never go wrong with investing your tax refund instead of spending it. Just stick it in a investment account and let compound interest do its thing.

Spend It On Something You Need

Spending you tax refund on something you need is fine. If you need to get your car serviced or need to get food in the refrigerator, using your tax refund would be best. As long as you’re not spending it on WANTS your using your money the most efficient way.

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