Shame on you if you’re lending the government money interest free, however, Gerri Willis over at Fox Business shares few tips just in case you happen to be getting a tax refund this year. Check out her recommendations below:
Save, Save, And Save Again!
If you don’t already have three months of savings set aside for emergencies, start that fund now. Look, not only could it be a lifesaver if you get sick or lose your job unexpectedly, but it’s always nice to have that pot of dough if you want to walk away from a job or boss you don’t like!
Refi the mortgage! Getting a new mortgage at today’s low, low interest rates will save you tens of thousands over the life of the loan. Or, if you are already a decade in, consider refinancing into a 15-year loan and save even more.
Invest For The Rest Of your Life
Start investing for real! There’s nothing better than watching your own investments grow over time and learning about the markets from the ground up. Start with the easy stuff, you can set up an account with low-price mutual fund companies like Vanguard or Fidelity online. An S&P 500 index fund will allow you to invest in 500 companies at once.
Increase Your Coverage
Consider upgrading your homeowner’s insurance. Most people don’t have the coverage they need if a real disaster hits as so many people found out after Superstorm Sandy. It’s worth interviewing an agent or two to determine whether you need more coverage.
Yes, You May Splurge
Okay, go ahead and buy those new shoes, but do yourself this favor: Go to your human resources office and change your withholding so that you aren’t overpaying Uncle Sam! The reason you’re getting that refund is because you paid too much in the first place. Why lend money to the government without even getting interest!
What are you doing with your tax refund?