5 Wise Uses For Your Tax Refund

So, your tax refund check has arrived. Now what? Well, here is your chance to take a huge step in a wise direction. Here are 5 wise uses for that cash:

• Pay Down Debt: If you have any debt, get rid of it. Although some types of debt are better than others, there is no ‘good’ debt. It would be wise to use your refund to jumpstart your progress.
• Open A Roth IRA: Most Americans can put $5,000/yr in a Roth IRA, however one-third of Americans recently surveyed had not saved anything  for retirement in the past year. Use your refund to get back on track. Don’t forfeit your rights to compounding interest.
• Open A College Fund For Your Child: Stop procrastinating! If you are financially prepared to start saving for your child’s college, get started with your refund. The average refund is over $2,500. Put that away today and in 18 years you will have $18,000. Not bad.
• Buy A House: Okay, so you don’t get much house for $2,500. However, if you combine that with the First-Time Homebuyer’s Credit, you are making good strides towards having a significant down payment.
• Change Your Withholding: If you are receiving a huge refund, you probably need to adjust your withholding. I don’t know about you, but I don’t like loaning the government free money all year. Use the IRS withholding calculator (Under “Helpful Links” on the right side of our site) to lower your monthly tax contributions. You certainly want to cover your tax bill, but you definitely do not want to over pay.