6 Ways to Spend Your Tax Return

With tax season behind us, it may be tempting to spend your return on an HD television or long-awaited vacation. Instead, the experts at American Consumer Credit Counseling recommend investing your return in areas you’ll see the most benefit. Here’s how.

1. Pay off any outstanding credit card debt. Take the opportunity to make a dent in your credit card debt. While you’re likely making monthly payments on your credit card, if you continue to make just the minimum payment, financing the debt with interest can be harmful and costly down the line.

2. Start or replenish your emergency fund. Building up a financial emergency fund is critical. Many financial advisors suggest building wallet2enough financial reserves to last up to six months in case of crisis.

3. Invest in a retirement savings account. Even if you already have a 401k plan with your employer, consider creating your own account. It’s a good way to have more control over your investments and to jumpstart them. The sooner you begin saving, the more time the money has to grow.

4. Start a college savings plan. There’s nothing more important than investing in education. It’s no secret that college is expensive. College debt can add up very quickly and take years to pay off. Avoid credit problems by saving early.

5. Invest in boosting your income.
Invest in your career. Spending money on professional education or new technology or tools for your business can go a long way in boosting your earning power.

6. Begin a maintenance project on your car or home to improve the quality and value. Use your money to tackle necessary repairs. Replace worn tires or patch leaky roofs. These projects will save money in the long run, as they can cost you more if you wait. These updates can also work to prevent any unexpected disasters, costing even more down the line.

Source: ACCC

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