CLOSINGS: View Closings

My Money Monday, Feb. 12 - Spending your tax returns wisely

Tips on using your tax refund wisely

Posted: Feb. 12, 2018 7:35 AM
Updated: Jun. 20, 2018 2:03 PM

Using Your Tax Refund Wisely
Link: https://www.firstalliancecu.com/blog/how-to-use-a-tax-refund-wisely

Q: We are approaching the time of year where everyone is starting to file taxes and some of the lucky ones will even get some money back. What are some smart ways to use your tax refund?

A: First of all, it’s important to remember that the money received back from taxes is not actually extra income. It’s your own hard-earned cash that was essentially a free loan to the government. That being said, one of the best things you can do with your tax return is invest it into a retirement account.

Q: That’s great advice, what are some other financially smart ways to use your tax refunds?

A: Another great option is to pay down debts, especially if you have high interest rate credit cards. Paying down or paying off your debts is a smart decision because it can free up your cash flow for the remainder of the year; which you can then save into an emergency fund or for something fun like a vacation.

Q: Is it ever a good idea to spend your tax refund?

A: It can be, just make sure that you are spending it in a way that will improve your financial situation long term. For example, making needed repairs or upgrades to your home which can increase the value of your home. That’s a smart way to spend a tax return because you will see a return on investment in the long term.

Article Comments

Mason City
Clear
46° wxIcon
Hi: 65° Lo: 41°
Feels Like: 46°
Albert Lea
Clear
50° wxIcon
Hi: 63° Lo: 41°
Feels Like: 50°
Austin
Clear
50° wxIcon
Hi: 65° Lo: 43°
Feels Like: 50°
Charles City
Clear
54° wxIcon
Hi: 64° Lo: 41°
Feels Like: 54°
Rochester
Clear
51° wxIcon
Hi: 62° Lo: 41°
Feels Like: 51°
Tracking the return of sunshine for the midweek.
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Veterans speak out about healthcare

Image

Grants for safe rides to school

Image

Former State Patroller recovering from addiction

Image

Olmsted County life saving awards

Image

EXCLUSIVE: Huisentruit person of interest speaks out

Image

Mill and Overlay project begins tomorrow

Image

Mill and Overlay Project

Image

Golden Apple

Image

New Information in Jodi Huisentruit Case

Image

Minnesota church responds to Sri Lanka blasts

Community Events