Six Ideas for Spending Your Tax Refund Wisely

February 22, 2017

With tax season in full swing, many people will start receiving their refunds.  What will you do with your cash?  Here are a few ideas on how to spend it wisely:

  1. Put some away for your emergency fund.  Ideally, you should have emergency funding on hand to cover three to six months of current expenses.
  2. Pay off debt, like credit cards or loans.  Try to focus on paying down your high-interest debt first.
  3. Start or add to a retirement account.  Plan for your future as soon as possible.
  4. Make Home Improvements.
  5. Donate to a charity.
  6. Purchase insurance coverage to protect your family and belongings.  Speak with your local independent agent to discuss potential gaps in coverage:
    • Look into an umbrella policy to sit overtop of your underlying homeowners and auto policy.
    • Add earthquake coverage, which is generally not included in your homeowners policy.
    • Add coverage for Equipment Breakdown, which covers losses due to mechanical or electrical breakdown of your home appliances.
    • Add coverage for ID Fraud.

Bonus idea: You could use your refund to splurge on a vacation.  Taking time off work can have major benefits.

This blog entry is created for informational purposes only.  Any viewpoint or sponsorship of outside parties involved in the blog entry does not necessarily represent Goodville's stance as a company.  The blog should not be used as a substitute for professional advice.