You’ve hopefully filed your taxes by now. Maybe you had to pay more, but maybe you’re getting a refund! If so, do you know what you’re going to do with it? While it might be fun to spend it all on a treat, how about putting some of it toward something more beneficial in the long run?
If you owe any money on loans or credit card debt, you could start by making an extra payment or two. It’s best to put your money toward the highest-interest debt first. This might also positively impact your credit score!
You can donate to charity – it’s not always easy to find the extra money during the rest of the year, but now you’ll have some. Not only will it make you feel good to pick your favorite cause to support, but you can claim it as a tax deduction next year.
Another good use for some of your money would be adding to your emergency fund – or starting one, if you haven’t already. It doesn’t hurt to have some backup money for those unexpected events like your fridge breaking down or losing your job. With anywhere from three to eight months’ worth of savings being suggested, that can take a while to build up if you’re just taking a little out of each paycheck. The tax refund could help boost your emergency fund a bit more quickly.
Of course, it doesn’t hurt to spend some of your refund on something you’ve wanted for a while. From a nice dinner for yourself or your loved ones, to a more substantial vacation, just try not to get carried away. You could even use it to improve on your own well-being: maybe buy a new mattress if you haven’t been sleeping comfortably, or get a gym membership for a year if you have a goal of getting healthier.