Best Ways to Use Your Income Tax Refund

Filling out a tax return is something very few people enjoy, but there are many who are entitled to a little refund. This is certainly the best thing to come from a tax return and if you are lucky enough to receive some money, you best spend it wisely. However, how do you plan to use your refund? The following are just a handful of simple, but some of the very best ways to use your refund.

Put Your Tax Refund into a Savings Account

Technically this was money you never had in the first place and one of the very best ways to use the money would be to put it away. You could open a new savings account and place whatever money you receive back in there; and you could continue to add to the account every year or whenever you have extra money. This money could be put away for a rainy day or for a little treat for the family or even for Christmas. There are lots of options for you, but putting the money away into a savings account can be fantastic; it’s probably the best way to use your tax refund.

Pay Old Debts or Bills

Let’s be honest, if you have bills piling up and you get some money back from your tax refund then you may be best to put it towards them. It might seem like a waste later but in reality this money allows you to catch up and keep your head above water. However, if you are all caught up with bills but have a few debts still left to pay, you should use the money for those. You never know you might be able to pay back the debt and have a little money left over.

Create a College Fund

If you have young or teenage children, you always want the best for them but let’s face it; the cost for their education is extremely expensive. However, if you can start up a college fund and add any money you get back from your tax return you could make a great investment for your child’s future. As most will know, college and further education can be very costly and you have to try and put as much money away as humanly possible. If in years to come the children don’t go to college, the money can be put towards something else, possibly a little nest-egg for them should something ever happen to you.

Put the Money towards a Down Payment

You never truly know how much you are going to get back from your tax refund and you may end up receiving thousands. If you are lucky to receive a big refund you could actually put this towards the down payment of a home. Now, this probably won’t cover the entire cost of the down payment however every little helps.

Use Your Refunds Wisely

The great thing about receiving a refund is that there are so many wonderful things you can do with the money. You should use the money however you like but try to use it a little wisely; don’t blow it all on crazy things. However, the above are just a few of the best ways to use your tax refund today.