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Make the most of your tax refund

March 11, 2015

Make the most of your tax refundHere’s a great idea

According to the Internal Revenue Service, so far this year, about 40 million tax refunds have been issued with an average refund amount of $3,120. Are you anticipating a tax refund? How will you use it? A tax refund is a great opportunity to pay down debt, build your emergency savings fund, or save toward a financial goal.

In other words

When your tax refund arrives, it’s easy to go on a shopping spree or buy something you’ve wanted all year long. But before giving in to unnecessary spending, make sure you are in a good financial situation.

How this applies to you

Make the most of your tax refund by following these tips from America Saves:

Pay down your debt. Use your refund for some much needed debt relief. Pay off your credit card balance.

Save for a rainy day. It’s always helpful to have a savings account to draw from when a major car repair bill, medical emergency or other unexpected expense comes along. That way, you don’t have to borrow money and add to your debt-load.

Save for future financial goals. Give yourself an even bigger return on your tax refund by putting the money into a savings account, CD, or retirement fund. Your tax refund will continue to grow if you put it into savings or invest the money.

To find out more

More information on saving at tax time from America Saves at http://www.americasaves.org/for-savers/make-a-plan-how-to-save-money/saving-at-tax-time

Learn more about personal finance at http://www.uaex.edu.  The Cooperative Extension Service has the latest research-based recommendations on money management to help improve your financial stability.

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