Getting a tax refund is like being visited by Santa Claus as an adult. They only come once a year, so most people use them on frivolous purchases. And why not? It’s your money! But, there are smarter ways to use it than on useless junk. Whether you’re only getting back a little or a lot, tax refunds can be a huge help with normal expenses, debt payments, or even investments. This post by Kelli at The Freebie Finding Mom has some smart advice:
-Pay down debt: use it towards student loans, car payments, or credit cards.
-Build an emergency fund- start it out if you don’t have one already!
-Look at insurance needs- upgrade if you can!
-Plan for retirement- put it towards your IRA or 401k
-Plan for college- either for yourself or your children
-Invest- and help your money grow
So, playing a little with your tax refund is fine, but if you put most of it towards one of these other options, you’ll be much better off.