Smart Ways to Use Your Tax Refund

So you’ve done your taxes. And if you haven’t, don’t worry, this year you have until Tuesday, April 18. But if you’re expecting a refund, we have some tips on smart ways to spend it.

Save It
Probably one of the best ways to use your refund is to save it. Start a savings account, add to a current savings account, build an emergency fund or fund your retirement account.

Pay Down High-Interest Debt
It may seem counterproductive to take a windfall like a tax refund and put it towards debt, but paying down debt will save you time and money in the long run. Interest rates are increasing especially for credit cards. Now is a great time to devise plan and use any extra cash to pay off debt.

Take Advantage of Seasonal Sales
According to Consumer Reports, there are particular times of the year when it’s better to buy certain products and services. For example, if you need a computer or laptop, they tend to be deep discounted in April. Interior and exterior paints, mattresses and certain baby items tend be on sale in May. Think about what you need, when you need it and if purchasing is a smart and effective use of your refund.

Schedule Auto Maintenance
Been putting off getting that chip fixed on your windshield? Tire treads wearing down? Need an oil change soon? Use the extra cash to pay for much-needed auto maintenance so you’re not caught off-guard at some point in the future.

Travel
Of course, you can use your refund for something fun like traveling. In fact, airfares are typically higher in June, July and August so your refund could help you out if you find yourself having to pay a little more for that summer trip.

Donate
Use your refund for something good. Donate to a local charity or organization you’re passionate about. Not only are you helping others, but your donation may be tax deductible. Be sure to keep your receipts to help you when you file your 2017 federal tax returns.

–  Adrienne L., Marketing Specialist

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