When you receive your tax refund, it’s easy to dream of places to spend it! But where is the best place to invest it to make it count?
More than 70% of the nation’s taxpayers typically receive a tax refund averaging nearly $3,000, according to the Internal Revenue Service. To keep things simple, we’ve compiled seven of our best tips to encourage you to use that money wisely:
Be sure to inform your lender that your extra payments should be applied to principal, not interest!
Whatever option(s) you choose, keep in mind that prioritizing your tax refund monies to create an emergency fund or pay off debts first will help position you for financial comfort the remainder of the year. Financial challenges can arise quickly, and it's critical to have money set aside for those unexpected hardships.
1 Ask your tax consultant about possible benefits and tax advantages.