-
Step 1
The first and most logical way to use your IRS tax refund is to pay off debt. If you have used tax software you will get your refund very quickly, so you will need a list. Make a list of all of your debt from lowest amount to highest. Start at the bottom and pay off as much of your debt that you can. This is usually credit card debt. Once you have paid off the devil cards...cancel them!
-
Step 2
The second best way to use your tax refund is to set up an emergency fund. When you are trying to get somewhere in life and pay off debts, something always sneaks up on you at the most inopportune time. Life happens. You will have your brakes go out, someone will get sick, whatever it is, it will happen. Start by setting up one thousand dollars in an emergency fund. If you have more, add more. Do not put this in an account that you spend money out of on a regular basis or you will spend it. Put it somewhere that you can access it, well, in an emergency.
-
Step 3
The last way to use your tax refund is to invest it. This is assuming that you have already completed the first two choices. Right now, the investment that is earning the yielding the best return is mutual funds. Get on the internet and research them. Then go to your accountant or insurance agent and discuss it with him.
If you do not use tax software and are in a hurry to use your IRS tax refund, you can get a tax refund loan or tax refund advance. If it has been a while and you are wondering why you have not received your refund, you can google Where's My Refund.
Whatever way that you use your tax refund, make sure to save out a little to treat yourself for being dilligent with your money.
Comments
cindyharding said
on 2/13/2009 Great atricle. i didnt think i needed ways to spend my refund- but yours made much more sense than mine!!5*
TwoGirlsMom said
on 2/12/2009 Great article!! 5*