Are you getting a tax refund this year?
This years average tax refund so far is $2,763.
How Americans plan to spend their tax refunds
According to a survey by GoBankingRates, the majority of Americans (79%) plan to either pay down debt or save their tax refund (in 2017). Just a small percentage said they planned to use the money for a vacation or to splurge on a large purchase. Here’s a breakdown:
- 41% plan to put the money in savings
- 38% plan to pay off debt
- 11% plan to use their refund toward a vacation
- 5% plan to splurge on a purchase
- 5% plan to use their refunds toward a big purchase, such as a car or home
No matter what the amount of the return, it’s easy to be human… and want to splurge a little with your “windfall” (which, by the way, is not a windfall at all, it’s your overpaid taxes coming back to you.) There’s nothing wrong with a treat, but keep it very reasonable, consider making your tax refund work for you and your family’s future through careful money management of the majority of your tax refund.
Do the right thing this year with your refund
Do the right thing this year with your refund, invest wisely in smart money management for the majority of your refund. Here are 10 smart ways to use this year’s tax refund.
1. Pay Down Existing Debt
2. Build Your Emergency Fund
Ideally, three to six months’ worth of income should be stashed in an emergency fund.
3. Fund Your Individual Retirement Account
You can open your own individual retirement account (IRA).
4. Invest
Maybe it’s time to open a brokerage account and start investing with your tax refund.
5. Consider Buying Flood Insurance or Increasing Liability Coverage
6. Start a Savings Account for Something Big
7. Make Home Improvements
8. Donate to Charity
9. Replace an Inefficient Appliance
10. Invest in Yourself
Learning a new skill that’s relevant to your job could aid your career, and learning a new home-based skill, like cooking, can lower bills and improve your quality
of life.
Learning a new skill that’s relevant to your job could aid your career, and learning a new home-based skill, like cooking, can lower bills and improve your quality of life.
Adapted from from article on The Mint. Click to read full article there. NOTE: I DO NOT have affiliation with this site nor endorse it.
Enjoy your tax refund wisely and feel great about yourself as the year and years go on.
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