8 Smart Ways to Save Your Tax Refund Check


There’s nothing wrong with using your tax refund for a little splurge, but the reality is many Americans plan to save their tax refund.

In fact, a National Retail Federation survey found that 47 percent of people expecting a refund were stashing it in their savings. If you’re ready to put your tax refund to work, here are some smart ways to save your refund check this season.

1. Invest in your home

Smart Ways to Save Your Tax Refund Check | thegoodstuff

Some home upgrades can actually save you money in the long run. Replace an old appliance like your washer or refrigerator with an Energy Star model.

You’ll see your energy bills go down and increase the value of your home! If you plan to sell your home in the future, replacing a front door, adding solar panels, or sprucing up the landscaping can be worthwhile investments.

Can’t afford a new appliance just yet? Here’s how to save money now with the appliances you already have!

2. Pay off your credit cards

If you feel like you’re sinking in debt, then use your refund to dig out. You may want to pay off the higher interest debt first since these accounts can do the most damage. If you have rewards points, it may be a good time to cash those out toward your debt as well.

Make paying off credit cards realistic: Our easy survivor’s guide to paying off credit cards

3. Make an extra mortgage payment

How to Spend Your Tax Refund Check: Pay off your mortgage | thegoodstuff

Putting an additional $100 per month toward your mortgage can shave thousands of dollars as well as months, even years off the life of your loan. Use the Additional Payment Calculator from Bankrate to determine how much it could save you in the long run.

4. Put it toward retirement

If you put all of that refund into an IRA account, just imagine what it could be worth when you turn 65! Use an IRA calculator to see how much your refund could earn you if you wait ’til retirement to spend it.

5. Start saving for college

How to Spend Your Tax Refund Check: Save with a 529 plan | thegoodstuff

Put it into a 529 plan and start saving for your child’s college. These are specific plans designed to help parents save money for their children’s education — every state has different plans and rules.

Plus, 529 plans typically offer tax advantages, so you’re setting yourself up for a good tax year. A pre-paid 529 tuition plan will lock in your tuition price (at certain schools) at the current rate. So if you bought a half year’s worth of tuition, it will still be worth half a year even if prices skyrocket by the time your child heads to college.

6. Beef up your emergency fund

It’s recommended that you have an emergency fund that will cover at least six months worth of expenses. But if you can’t save that much, that’s OK. Having something is better than nothing. Use your refund to start an emergency fund or replenish an existing one. Keep it in a separate account so you won’t be tempted to touch it, but make sure you can easily access it without paying a fee.

7. Treat yourself to travel

How to Spend Your Tax Refund Check: Go on a vacation | thegoodstuff

Is paying for a vacation really an investment? Think of it this way: you’re letting yourself and your family refresh, relax, and unwind — together! Vacations are a perfect time to invest in family bonding, and you can usually find some great deals on travel if you know where to look.

Most of us know you can usually get good travel deals at sites like Priceline and Expedia, but what you may not realize is you can often find coupons codes for these sites to save even more money. If you want to take a trip, think off-season to save. Often times you will save a considerable amount of money if you travel during off-salon as opposed to high-season. The trick is to book your travel a week or two before high-season begins. You will usually get a great deal and often times the weather is just as good as high-season.

If you want to take a trip, look at off-season dates to save even more. Usually you’ll save a considerable amount of money if you travel during off-season as opposed to high-season. The trick is to book your travel a week or two before high-season begins. You’ll usually get a great deal and oftentimes the weather is just as good as high-season!

Max out your travel savings with our best travel tips and deals!

8. Buy a family museum membership

How to Spend Your Tax Refund Check: Buy a museum membership | thegoodstuff

I love this tip! If you buy an annual family membership to one of the museums in the North American Reciprocal Museum Association, not only will you and your family get admission for a year, but you’ll have access to hundreds of others for free or a discounted rate. You can keep your kids busy and entertained every weekend of the year for the cost of one membership!

Learn and have fun together all summer long: 52+ free activities for kids and families in every state!

How to Spend Your Tax Refund Check | thegoodstuff


Comments

  • mortgageratestv

    Putting an additional $100 usd per month. It’s a pretty good practice to save money. It’s like the practice of double payment at the beginning, depending on the program/rate, every two months a double payment is made. You can save big money on interest. But it is important to use a mortgage calculator to manage your money for a future.