For the Love of Money
As you’re working through filing your taxes, you’re probably dreaming of everything you want to do with your refund money, like take a vacation or buy a new car. But what do you think would be the wisest investment for your tax refund?
Money, Money, Money—Mooooney!
Before you go spending your entire tax refund check, hold your horses. There may be a better (and wiser) way to use your refund.
Do you have any debt hanging over your head? If you have any debt—big or small—on a credit card, use your tax refund to start paying off this debt first and foremost. This debt is only going to continue to grow and grow if your interest rate is anything other than zero. Therefore, tackle this debt before even thinking about purchasing any “wants” with your tax refund this year.
Remember, too, that when it rains, it pours. If it starts to rain on your parade, would your finances be prepared? You need to establish an emergency fund (at least six months’ worth of expenses) before spending any money on materialistic items. Those items will not cover you if your washer and dryer breaks or your car breaks down. However, an emergency fund will. Start by saving $1,000 first, and grow your emergency fund from that point.
Also, now may be a good time to look at your retirement account. While you don’t want financial stress now, you definitely do not need it in the future—especially when you will have a limited income. Consider speaking to one of our knowledgeable associates about an IRA.
It can be extremely tempting to spend your refund check on all the “wants” your heart desires. But this year, put your money in a St. Johns Bank savings account!