10 Smart Uses for Your Tax Refund

tax refund1 0 Smart Uses for Your Tax Refund from Kiplinger and more
1-Pay Off Credit Card Debt– If you have a balance charging 18% interest rate, it is like earning 18% on your savings.
2-Rebuild Your Emergency Fund-This could help you from landing in credit card debt when an emergency arises.
3-Boost Retirement Savings-You can add up to $5,500 to your IRA (ROTH or traditional-restrictions apply) or $6,500 if you are  50 or older.
4-Fund a Taxable Account-If you have your emergency fund replenished and your retirement savings maxed, use the extra cash to purchase investments at risk.
5-Fill Gaps in Your Insurance-Review your home and auto insurances with a broker. Is an umbrella policy right for you? Trim your trees to protect against damage. Do wild fire mitigation.
6-Build College Savings-Is a 529 plan right for you?
7-Help Your Kid Save-Did your child/grandchild earn money from mowing yards or baby sitting or a summer job? Your child/grandchild can contribute up to $5,500 or the amount of his or her earned income for the year, whichever is lower, and you can give him the cash to do it. (I suggest doing a ROTH and it will grow tax deferred and come out tax free!)
8-Prepay Your Vacation-Set aside some money rather than using your credit card.
9-Invest in Your Home-It can pay for smaller home improvements such as install a storm door, replace a window, update your lighting, update your cabinets.
10-Give to Others-If you have your financial bases covered, consider using your refund to make a charitable contribution to help others in need.

10 Smart Uses for Your Tax Refund
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