With increasing financial pressure coming from inflation, rising interest rates, and expiring government assistance, people should look to their tax refunds for help. One advisor suggests adding it to your monthly budget moving forward. Another idea is to dedicate at least part of it to an emergency savings fund. If you have high interest debt, consider using the refund to pay off some of it. Alternatively, the refund can be used to help meet retirement savings goals. One expert suggests using around 10% of your refund to have some fun by, for example, going out for a steak dinner or to a concert.
- Financial experts suggest saving a good amount of your tax refund for emergencies.
- The refund can also be used to pay off any debt with 6% or higher interest rates, or with variable interest rates.
- One expert recommends spending around 10% of your tax refund on something fun, like a steak dinner or concert tickets.
“Even though what can feel like a gift from the government is actually a delayed receipt of your own money, the best use of those funds is not always apparent.”