Tax season is now upon us and anyone and everyone will give you advice on how to use your refund. Here at SpoFed we encourage our members to use this money wisely, but how?
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#1 Start or Pad Your Emergency Fund
An emergency fund is the foundation of any good financial plan and your tax refund is a great opportunity to start yours. We recommend having 3-6 months of living expenses saved in your savings account for a rainy day; and your refund can be just the seed money you need to get started.
#2 Pay Down Your Debts
Your tax rebate represents an opportunity to get out of debt or pay down your balances. If you have any debt with an interest rate above 7% consider putting your refund toward it. You’ll be glad you did.
#3 Save For Your Long Term Goals
Another great use for your tax refund is saving for your long term goals. Whether you plan to purchase a home or go on a European vacation your tax rebate can give those goals a big boost. Sock it away in a new savings account (we can certainly help you open one) where you won’t touch it until you need it.
Have questions about what to do with your tax refund? Come in and see us, we’d be happy to talk with you. We even offer members a 15% discount on Turbo Tax.