Smarter Ways to Use Your Tax Refund

Did you blow your whole tax refund on Funko Pops yet?  Here are a few better things to do with it:  A senior writer for CNN Business posted a list of SMART things to do with your tax refund.

1.  Pay off a credit card.  The average APR is 20%.  So, flip that on its head and think of it like this:  If you pay it off now instead of a year from now, it’s like MAKING 20%.  A “20% risk-free return” on investment.

2.  Start an emergency fund.  The economy is iffy, so it’s a good time to have something in savings.  Ideally, you’re supposed to have at least three to six months’ worth of living expenses set aside.  Maybe even a year’s worth if you’re self-employed.  But anything is better than nothing.

3.  Invest it.  Stock prices are down, so it might be a good time to let your money MAKE money.  The first two things on the list are more important though, so do those first.  Or, split it up and do some of each.

4.  Buy something that might cost more later.  If money’s not too tight, think about spending your refund on something that might go up in price soon.  A lot of the tariff stuff hasn’t filtered down yet.  Things like a new washing machine or a new car could cost more in a few months. 

(CNN)