Updated: Sep 3, 2019
Begin saving or increasing your savings for emergencies that may occur.
Without an emergency fund, just surprise expense can send you on a debt spiral toward financial disaster. We always advise our clients to have at least six months’ worth of savings that are easily accessible. Storing a lump sum of money can always have a significant impact to your financial stability.
Pay Off High-Interest Debt
The next best thing you can do with your tax refund is reduce or eliminate any high-interest debt that you owe. For instance, any outstanding loans, credit card debt, or simply paying off medical bills if they exist.
Pay for any necessities
Necessities include dental or medical work, taking care of car or home related expenses. With your tax refund you may be able to cover those costs and in the future you will not have to worry about it.
Reach out to credit union or banks like Fidelity to set up an itemized savings account
Now is the best time to discipline yourself financially. We have created a budget that will assist you in taking care of your expenses, savings, and having extra money to treat yourself at the end of the month. If you begin saving now through merchants like Fidelity, credit union savings account, or Capital One 360, you may not need to take a loan out in the future.
Itemized savings accounts are great with helping consumers reach their financial goals.
Refinance Your Mortgage
Refinancing your mortgage will help your credit and allow you to keep extra money on hand.
Get a New Business Up and Running
Have you ever thought about owning your own business? What about that deposit you needed for that office space, hair salon, barbershop, clothing store? You could use your refund to point you in the right direction by producing more income for the future.
Spend It On Something You Want
You saved all year, and now you’ve earned the right to splurge a little bit. Don’t feel guilty about using the extra cash for a summer vacation or treating yourself or your family to something nice.