If you have, or will be receiving, a tax return this year, congratulations! If you are like most people, you probably spend that refund check. However, try doing something new with your tax refund check this year to put yourself ahead and ease the risk of financial crisis down the road.
Save Or Spend Smart
The obvious advice from financial experts is to save your tax refund check. Saving money is always to your advantage and the more you have, the safer you are if financial hardship ever strikes. However, most people just can’t bring themselves to put that tax refund check in their savings account. If you aren’t planning to save your refund this year, at least consider a few smart places to spend that check.
Instead of buying new clothes or fancy electronics, put your tax refund to work. There are plenty of smart places you can spend that tax refund check that will actually benefit your financial situation and help you alleviate or stay away from debt troubles. For example, if you have been considering refinancing a mortgage, that refund check can help you cover the costs associated with closing on the new loan. Rather than pay out of pocket, let your tax refund go towards securing a lower rate on your mortgage, which will also save you money down the road. You could also make an extra credit card or mortgage payment with your refund, getting you that much closer to paying off your debts. When it comes to debt reduction, every little bit of extra money goes a long way towards your ultimate goal.