Now that tax season is officially over, those who are getting refunds are already making plans for their money. But what about those that have no clue of what to do with their refunds? Well here are some suggestions for you.
- Build an emergency cash reserve. By far, I think this is one of the best uses for a tax refund. Since the country is in a recession, it makes a lot of sense to start that emergency fund. An emergency fund will come in handy in more ways than one.
- Pay off debt. Another good use of your tax refund is to pay off some debt. This may be credit card debt or student loan debt etc. If you choose to pay down credit card debt, be sure to read my blog on paying credit card debt.
- Contribute to an IRA or 401K. This is another great use of your refund dollars. Saving for retirement never goes out of style. In fact, contributions to your IRA are tax deductible if you meet certain income and employment requirements. Bankrate.com offers some great tips on how to start investing in IRAs. Visit this site at: http://www.bankrate.com/individual-retirement-accounts.aspx.
- Improve your skills. It is never too early or too late to acquire or enhance your existing skills. In this tough economy, it is truly an asset to have additional skills that your employer can use or that you can use yourself if you are self employed. In the Tampa Bay Area, the University of South Florida offers several certificate courses in continuing education programs. Visit its website at http://www.usf.edu/Academics/Continuing-Education/index.asp.