Receiving a tax refund feels like a bonus. In an instant, you’ve got some extra cash and the freedom to spend it as you wish. Here are the top four ways to make the most of your tax refund money.
If you hold a balance on a credit card, using your refund to settle up is a great idea. Credit cards have accruing interest, so the longer you take to pay it off, the more you’ll actually have to pay.
If you have multiple cards, pay off the one with the highest interest rate first. Once the debt is gone, you’ll actually have more money available every month.
Your practical and pragmatic side might be telling you to save your refund money. Cushion a savings account or open a new one, and keep the funds handy for a rainy day, retirement, or for a future goal, such as paying for school or taking your dream vacation.
Fund the Future
Use the money to open a special savings account for yourself or your kids, such as a Roth IRA (individual retirement account). The great thing about an IRA is that your kids can contribute their own funds each year, and watch the balance grow. (Read more about IRAs.)
Revamp Your Home
Use your refund money to purchase new furniture, an HDTV, or that laptop you could really use. There’s no time like the present to revamp your home, and there’s no better partner for great products than Rent-A-Center.
Your refund also goes further at RAC because delivery and setup are included with your items. So whether you’ve been wishing for a new washer and dryer, dreaming of a new bedroom suite, or waiting for the right time to redo your kids’ room, RAC makes it easy, simple, and affordable to have the products you need right away. You can even begin the easy application process online.