Ellie Kay, an author, expert on national television, and a popular international speaker, asks one of the biggest questions about tax refund checks, “Where do you spend it?” When she and her family would receive birthday checks or insurance refunds, she would always make sure that the money was put towards an investment. Follow tips that people like Kay used to allocate their tax refund checks to a designated fund.
Emergency Savings Accounts
If you are in a position where you have no debt and want to reinforce your financial security in case of job loss or unexpected repairs, look into opening an emergency savings account. A well-funded account will ensure financial comfort and put you in a position to be ready for anything.
Open Up An IRA
Saving for retirement by opening up an IRA is a great option if you are months ahead on living expenses. By doing so, you can strengthen your financial position and reap the benefits once you retire.
Eliminate or Reduce Debt
Debt is one of the most important problems that many people face today. Instead of spending your tax refund check on materialistic items, take a good look at your current finances. Are you in debt? What is your debt-to-income ratio? Asking yourself these questions will bring a realistic perspective on your finances. While it may not be as glamorous as spending your check on a new boat, you can secure your foreseeable financial future by eliminating or reducing your debt.