Tuesday Tax Tips 3/19/13 @ 5pm
By: Marcy Foust
Updated: March 19, 2013
On Tuesday's Live @ 5 Andy Stadler talked about different ways to use your tax refunds.
Per IRS the average tax refund is nearly $3000.00. Will you spend yours on a big screen TV or a Vacation to Florida? We certainly hope you don't spend it all in one place. There are fun and responsible things you can do with your tax refund this year. Here are four very smart things you can do
Pay down debt - 50% of Refund: By using 50% of tax refund to pay down debt you can ease finances pains in the coming months and for many people you can relax and rest easier knowing that your debt is reduced.
Emergency fund - 15% of Refund: By putting 15% of your tax refund into an emergency fund will create peace of mind and help immensely during stressed emergency time. Emergency fund is not for emergency pizza, this fund is for a new roof or for a real EMERGENCY. That means don't touch it unless absolutely necessary!
Retirement fund - 15% of Refund: The next 15% of the refund should go to savings again, but this time for retirement. If you already have a retirement account at work look at opening an ROTH IRA fund. This 15% could be the jump start you need to start putting money away for your retirement, after all Social Security may not always be there
Vacation fund - 20% of Refund: The last 20% of your refund should be spent on something fun! This could be a saving for a summer vacation instead of going more into debt for the next family vacation. This final 20% could also be saved until the next holiday season. Instead of paying off holiday debt in the New Year, have that debt taken care of by using this year's tax refund.
So, this year instead of going through your tax refund in a day, plan out a better way to use it wisely.
Per IRS the average tax refund is nearly $3000.00. Will you spend yours on a big screen TV or a Vacation to Florida? We certainly hope you don't spend it all in one place. There are fun and responsible things you can do with your tax refund this year. Here are four very smart things you can do
Pay down debt - 50% of Refund: By using 50% of tax refund to pay down debt you can ease finances pains in the coming months and for many people you can relax and rest easier knowing that your debt is reduced.
Emergency fund - 15% of Refund: By putting 15% of your tax refund into an emergency fund will create peace of mind and help immensely during stressed emergency time. Emergency fund is not for emergency pizza, this fund is for a new roof or for a real EMERGENCY. That means don't touch it unless absolutely necessary!
Retirement fund - 15% of Refund: The next 15% of the refund should go to savings again, but this time for retirement. If you already have a retirement account at work look at opening an ROTH IRA fund. This 15% could be the jump start you need to start putting money away for your retirement, after all Social Security may not always be there
Vacation fund - 20% of Refund: The last 20% of your refund should be spent on something fun! This could be a saving for a summer vacation instead of going more into debt for the next family vacation. This final 20% could also be saved until the next holiday season. Instead of paying off holiday debt in the New Year, have that debt taken care of by using this year's tax refund.
So, this year instead of going through your tax refund in a day, plan out a better way to use it wisely.
