What are you doing with you tax refund?

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People are anxious about their tax refunds. When am I getting it? How can I get it faster? which places give the money right away and how much does that cost? These are the questions I hear in side chatter and online. 

The refunds are beginning to roll up in bank accounts. Please use these funds wisely and don't spend it on something that will mean nothing to you in two months. Also, please don't spend the money before you have it.

Here are 5 ways to consider using the refund:

1. Paying off debt
Use the money to pay off some off your credit cards or other debt. This will help you reach your overall financial goals quicker. Grab a free debt tracker.

2. Increasing or creating your emergency fund
If you have an emergency fund, consider topping it off a bit. If you do not have an emergency fund, use the refund to create one. Life can happen at anytime. "Life" meaning  you can get a flat tire or a busted water heater or things like that for which you may not plan for but must fix immediately when they happen. Having an emergency fund help reduce the stress knowing you have the funds to take care of it. High interest savings accounts are the best place for this fund. Check out a few here.

3. Invest 
Investing in the stock market is another way to put the funds to good use. Robinhood is a fun and easy way to get started. Read up on it and once you decide it is the way you want to go use this and both YOU and I can get a free stock. https://join.robinhood.com/patrind1

4. Purchase a high yield interest CD
Check with your local bank or credit union for the best deal they have for Certificate of Deposits (CD). This is for when you want to sock the money away for 12 months or more. Future purchase of a car, college, house, etc...Do not go the CD route if you will need your money in the next month or so as you will have to pay a penalty to get tour money if you take it out before the end of the term at the maturity date. You want to compare interest rates to ensure you get the most for tour money for the term of the CD. More options 

5. Open a Roth IRA
Open a Roth IRA. What is a Roth IRA? According to Investopedia - A Roth IRA is a tax-advantaged retirement savings account that allows you to withdraw your savings tax-free. Established in 1997, it was named after William Roth, a former Delaware Senator. Roth IRAs are similar to traditional IRSs with biggest distinction between the two being how they’re taxed. Roth IRAs are funded with after-tax dollars; the contributions are not tax-deductible. But once you start withdrawing funds, the money is tax-free. Conversely, traditional IRA deposits are generally made with pretax dollars; you usually get a tax deduction on your contribution and pay income tax when you withdraw the money from the account during retirement.

So if your refund money is about to roll in, think about the 5 suggestions I gave above or if you have other suggestions, put them in comments. The point being, don't buy something you will regret later and find a way to make the money work for you. 

If you want to know when to expect your refund, the IRS has
​site called "where is my refund".

Need a finance coach to help you get your money right, let's chat. CONTACT PATRINA