7 Things to Do With Your Tax Refund

The April 15th tax filing deadline is quickly approaching! Whether you have already filed and received your tax refund, or you are waiting until the last minute to get your return in, the important part is what you do with the money you get back! Sure, you can go spend the money on something nice, but why not make the most of your refund? The CGS Team is sharing 7 things you can do with your tax refund that will benefit your financial situation!

Things to do with your tax refund

#1: Pay off Debt

The best thing you can do with your tax refund is pay off your debts. Start with any credit card or personal loan debt, since those typically have the highest interest rates. Don’t have any unsecured debt? Pay down your student loan debt!

#2: Invest It

Consider opening a brokerage account with Charles Schwab and Scottrade and start investing! Research a few long-term mutual funds, or consider purchasing stock in a popular company like Apple or Google.

#3: Open a CD or High-Interest Savings Account

If you don’t need your money right away, consider putting it in a CD. CDs offer much higher interest rates than regular savings accounts. If you think you may need the money, put it in an online savings account. The interest rate is almost as high as a CD, but you don’t have to worry about the timeframe.

#4: Start Your Emergency Fund

An emergency fund is a financial necessity. It should consist of 6 months’ worth of living expenses. Obviously, your emergency fund should only be used in the case of an emergency.

#5: Put it Towards Your New Car or House

We all have long term goals, so if you don’t need the money for anything in particular, why not put it away for your dream house or new car?

#6: Contribute to an IRA

Have you been slacking on saving for retirement? Putting your tax refund into an IRA can be a good way for you to gain more ground for retirement planning. Start with your current bank, most will offer IRAs. If not, visit your local Fidelity or Charles Schwab location.

#7: Start Your Business

If you have been dreaming of starting a business but never got around to it, then let your tax refund serve as your motivation! Complete the application with your state of residence and use your refund as an initial investment in your new company!

 

There are plenty of ways to utilize your tax refund for the better! As tempting as it may be to shop, do something that will help you in the future. How do you typically spend your tax refund? What are some beneficial ways you plan on using your tax refund? Share your tips and experiences with the community by leaving a comment below!

-The CGS Team

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