Saturday, February 2, 2013

What You Should Do With Your Tax Refund Money

Before you decide to splurge and spend your whole tax refund check on some new shoes, that fur coat or that Brazilian hair you've been eyeing, smart money decisions should be taken into account even if this is extra money. Here are a few suggestions to spend your extra cash but not waste it.

Start or increase your emergency fund. Just one piece of surprising bad news can send you on a debt spiral. Having an emergency fund can help soften the blow on a sudden tragedy. Experts say this fund should be about six to eight months worth of savings in a easily accessible interest bearing account.  Saving should be a no-brainer, so instead of spending it all and wondering where it all went in a few months, save it. Open an individual IRA, a money market account or maybe even an online savings account with a company like ING.  

Pay off Debt. Use this as a platform to start your debt elimination program. of choice and paying off any payday loans, title loans, debt consolidation loans, high-interest private student loanscar loans, and of course credit card debt.

Start a business. Have you been looking for seed money to take your business to the next level? Do you have a venture that you want to start? You can use your refund to get you moving in the right direction. It’s a great opportunity to turn your refund into income for years to come, and get a few more small business tax deductions next year too.

Take A Vacation. It’s a tragic reality, but the majority of Americans are vacation deprived. Compared to our European counterparts who get a month or more to relax, most of us are stuck with a two week vacation allowance. It’s not much, but considering that most Americans don’t use their vacation time and it is well documented that our workers are more stressed than other countries, you would think we would be running to the airport. So, use that money for a vacation, you deserve it.

By Naima Muhammad Twitter @Queen_Naima

Share this:

Post a Comment

Enter message here!

Back To Top
Copyright © 2014 Ms. Vixen. Designed by OddThemes