“Smart Ways to Spend Your Tax Return”by Tim Manni
Earlier this week we asked how you plan on spending your tax refund. If you’re still undecided, financial experts Ken and Daria Dolan have offered 10 smart suggestions for the best ways to spend it. Here are just a few:
1. Treat Yourself To A Little Something: With the key word being “little,” by paying cash and treating yourself to something you’ve worked hard all year for, will not only make you feel better about yourself, the economy will certainly benefit as well.
2. Pay Down Your Debt: Perhaps this suggestion should be first on everyone’s list. The latest polls suggest that this year more Americans will be utilizing their tax refunds to pay down debt than in years past. Be sure to read the Dolan’s “best ways to pay down your credit card debt.”
3. Establish an Emergency Fund: The Dolans advise having enough savings on hand to cover at least six months worth of living expenses. Unexpected incidents such as unemployment or injury can quickly cut off your income — so it’s best to be prepared.
4. Rebuild your IRA and 401(k): Many Americans are still picking up the pieces from shattered retirement funds when the stock market turned sour just months ago. What better way to protect your retirement than to pad your IRA and 401(k). “$2,705 invested today at an 8% return will be worth $12,608 in 20 years!”
5. Invest in Career Training: Let’s be honest, the job market has been turned upside down, and some analysts have only predicted things to get worse. With many American workers forced to consider new career paths, investing your tax return in training, education, and/or a certification can not only make you a better employee, it could wind up paying dividends.
Click here to read the rest of the Dolan’s “10 Smart Ways to Spend Your Tax Refund.”