Well, you have a tax refund on the way…
Are you thinking of all the fun ways to spend it?
Of course it would be fun to immediately head to the local mall for a shopping spree but it’s really probably a better idea to choose one or more of these ways to spend your refund (don’t be mad… you can thank me later)!
- Start or increase your emergency fund – make sure you are prepared for the unexpected. A general rule of thumb is $1000.
- Get your “debt snowball” rolling – Dave Ramsey will tell you that you will be more successful in paying off debt if you start with your smallest debt and work toward the largest but some argue high interest debt first. Either way pay down your debt!
- Build your savings account – our parents and their parents did such a better job than us at saving! It’s important. After you decide how much of your tax refund will go toward this category, make sure you add “saving” into your monthly budget.
- Pay down long term debt – even just one extra payment per year toward your mortgage can have a big impact and save a lot of interest!
- Invest in the future – stash away some money for retirement whenever you can.