Thursday, March 22, 2012

WHAT CAN I SPEND MY TAX REFUND ON?

1. Pay Off Debt
While it is tempting to spend your tax refund on a summer vacation, paying off your debt can be just as satisfying. After all, when you pay off your credit cards, you're essentially making a 13-20% return on your investment, depending on what APR you're paying. That kind of performance is hard to to beat! 
2. Start a College Fund for Your Kids
Investing in your children's education can be one of the most fulfilling experiences you can have as a parent. Put your tax refund into a 529 college savings plan or an Education Savings Account (ESA) and help out your kids in the future.
3. Grow Your Own Garden
Building a garden and growing your own food helps you develop a green thumb, and it also saves you money each year at the grocery store.
4. Start an Emergency or "Rainy Day" Fund 
Experts recommend having 3 to 6 months of living expenses tucked away for emergency situations. Consider opening up a savings account for your tax refund and save it for emergency  situations that may (or may not) arise in the future.
5. Make Your Home to Be More Energy Efficient
Projects that improve your home's long-term efficiency are well-worth the investment. New windows and doors, new roofs and better insulation is just a start to saving thousands each year on energy bills. Plus, these improvements can extend the lifespan of your home.

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