For many, tax season equals refund season and there is a temptation to spend the refund on something that falls into the “want” category. However, with more than $3.86 trillion in student loan, auto loan, and credit card debt combined, it’s pretty easy to see that there are more impactful ways a person can use the annual “windfall.”
Experts advise to pay down debt, begin a savings fund, or invest toward retirement as ways to use a tax refund for long-term benefit potential.
If your debt is under control and your retirement account is growing steadily, there are other ways to invest your refund dollars that will do more for you than the perceived well-being from a vacation.
If you have not yet filed your return, here are some helpful links from the IRS: