April 15, 2004
Tips for Using Your Tax Refund
- Save it for emergencies You'll be more relaxed than when on vacation if an emergency strikes and you actually have the cash to pay for it.
- Put it toward paying cash for your next big ticket item big screen TV, car, boat, etc. *
- Pay off a debt Start with the smallest debt and pay them off until your refund is gone. Getting those off your back will be more satisfying than any "stuff" you could buy with the money.
- Invest it in your retirement or your kids college fund That little check could be HUGE in the long run if you invest it in a good mutual fund.
- Put it toward the mortgage the sooner you pay off the house the sooner you have your greatest wealth-building tool available (your income).
Give it away to a great charity, your local church or a needy family the most fun you will ever have is giving it to someone who truly appreciates it.
*If you got enough back to nearly buy a big ticket item, you need to look at your deductions why are you letting the government use your money without interest for a whole year?
Dave Ramsey hosts the nationally syndicated radio call-in program "The Dave Ramsey Show" and has authored three best-selling books: The Total Money Makeover, Financial Peace and More Than Enough. For more information visit www.daveramsey.com.