Use Your Tax Refund Wisely

Use Your Tax Refund Wisely

Have big plans for your 2017 tax refund? According to the IRS, the average tax refund last year was around $2,913. That’s a good chunk of money that can help you advance your financial situation if you use it correctly.

While it is tempting to spend your tax refund on a summer vacation or a new gadget, consider these alternatives that will make you feel like a winner in the long run:

Invest it: Already have an individual retirement account (IRA)? You can move your refund there to begin saving for your retirement. Have children? Open a 529 college savings plan or an Education Savings Account (ESA) to begin a college fund for your little ones. Or give Worthy Bonds a try and invest your money to earn a 5% fixed-rate return annually.

Pay off debt: That interest you are paying on your credit cards is much higher than the interest rates available on most of the mainstream investment opportunities so pay it down ASAP! Starting with the highest interest rate lines, use your refund to pay off any debt.

Reinvest in yourself: One of the best things you can do in any career is to learn continuously and gain new skills. Take a class at your local college or online (we love Udemy and Lynda) or enroll in a certification course to increase your own market value.