Spring is a dangerous time of year for your financial security. I know so many of you will be getting a tax refund; some of you may be getting money back from both Uncle Sam and your state. The danger is that you blow the money on a want, rather than focus on your needs.
And that’s a shame, because chances are your refund could be a serious chunk of change. The average refund last year on federal returns was nearly $2,800.
Don’t you dare spend that money on a vacation or a new flat screen. Or anything that qualifies as a “want”. You are to focus on needs first.
My short list of important needs:
- Pay off high-interest credit card debt.
- Pay-down a high interest car loan.
- Pay down student loan debt.
- Build up your emergency savings. 8 months of living expenses is the ultimate goal.
- Fund a Roth IRA.