Five SMART Things To Do With Your Tax Refund – Part 1
It’s that time of year where you may get a little coin back from the government. You may wonder what to do with this cash if you are one of the people who gets a refund each year. We are going to write a three part blog series on things to do with your tax refund. We will cover SMART things, FUN things and FAMILY things. Let’s kick this off with five SMART things to do with your tax refund.
Number 1: Make An Additional Contribution To Your Retirement Account – Five Smart Things To Do With Your Tax Refund
This may sound boring, but it one of the very best uses for some extra cash. This is also the one way that your money will continue to grow. Imagine how much you can make on this over the next ten to forty years? Now that is the first of five smart things to do with your tax refund!
Number 2: Pay Off Some Debt
Debt costs us more than we realize. It isn’t just the interest payment. In many ways, it also prevents you from moving forward to other financial goals. In some cases, this includes saving, funding college for your children or buying a family home.
Number 3: Start Or Add To A College Savings Fund – Five Smart Things To Do With Your Tax Refund
Not everyone saves for their child’s education, but it is a consideration. This could be a priority for you depending on your goals and how old your children are.
Number 4: Make An Extra House Payment
I don’t mean make an early payment. This would be an additional payment so you actually make 13 payments in one year instead of 12. Each additional payment you make on your principal saves you a significant amount of interest.
Number 5: Save It For The Holidays
I know it can be hard to save a chunk of cash for the whole year. However, can you imagine how great it would feel to have you holiday season covered from the start? That would be a great way to kick off 2020 with no holiday debt or setback in sight!