Tax season will be over soon and the refunds are rolling in. Chances are you’ll be getting a nice chunk of cash, so the question is: what do you do with it?
It’s tempting to use it to treat yourself, right? While using a small percentage for something fun is understandable, you want to save the majority for something that helps you. Think of it like this: taking care of important things now will eventually lead to being able to spend more on what you want more often in the future.
Here are 10 suggestions for your refund:
Pay off your debt. This is especially true if you have a high-interest loan or credit card. Even if your refund doesn’t take care of it completely, you can still make a nice dent.
Deposit into a high-yield savings account. It can be hard to set aside money from your paycheck, so your refund is great for a savings account. You’ll also be able to make money off this account, especially if you choose a high-yield one like Aspire offers.
Open a CD. A certificate of deposit is like a short-term savings account. Your money is held for a certain time period, usually 3 months to a few years, accruing interest during this time period. Aspire offers this service starting at $500.
Start an emergency fund. What would you do if you or your partner lost their job today? Do you have enough funds to carry you through a couple months? Set up a special account or place for your “emergency fund.” This fund should be set up to cover your basic expenses for a few months.
Open an IRA. An Individual Retirement Account is another way to save money for your retirement. Aspire offers different IRAs you can check out here.
Use it as a down payment. If you’re in the market for a new home or car, you can use your refund to put more cash up-front. This will reduce the amount of financing you’ll need.
Fix up your home. If you’ve been putting off important home repairs or energy-saving improvements, now’s the time you can get it done.
Get up-to-date on your car’s maintenance. A well-maintained car can last you a long time. Check with your mechanic about what you can do to help your vehicle last longer and be more efficient.
Take a class. A college class may help you get ahead in your career. Check with your local college about what they offer for professionals.
Start a garden. You can grow herbs, fruit and vegetables and save money at the grocery store. It takes time and money to get started, though.
Have any other ideas? Leave them in the comments!