Finance 101: What to do with a tax refund?

CHICOPEE, Mass. (Mass Appeal) –  Ahhh the tax refund … nothing better than getting a check from Uncle Sam, but what should we do with our newfound cash?
Todd Christian from Cambridge Credit Counseling in Agawam is here with some ideas.

70% of households will receive a tax refund though you might have to wait longer this year  to see it deposited into your account due to the IRS trying to cut down on the amount of tax fraud. The average return is around $2800

 

#1 SAVE

This will allow you to have a cushion in case of a financial crisis such as a sudden loss of income or unexpected expense.

 

 

 

#2 Pay off/Down debt

Start with the accounts that have high APR’s on them, then move to the accounts with the lower APR’s. This will allow you save money on the interest your being charged and you will get the debt paid off faster.

#3 Increase the value of your assets

Instead of squandering maybe take the refund and take care of your assets? Do I need repairs to my home or car? My wife says fix the little issues now , before they become a major problem.

#4 Invest in yourself

Think about investing in yourself. You may want to take a training course that will allow you too  get that certification to move to another dept. You may be only one class away from attaining your B.A.