Ways to make your refund work for you
If you are getting a tax refund, remember it's your money being returned to you WITHOUT any interest. So don't blow it! Use the refund to improve your financial well-being. Plan how the money will be used before it arrives. Below are some suggestions that may work for you.
- Add the money to your emergency fund or start an emergency fund. Experts recommend having 3 to 6 months of living expenses tucked away for that rainy day or unexpected expense that is sure to come.
- Pay off bills--regular monthly bills or long term debt.
- Add money to your retirement account.
- Save for a child's college education.
- Put the money towards a large purchase for the family (new washer, refrigerator, etc.).