CHARLOTTE, N.C. — It's not often you meet someone who likes to do their taxes. Arguably, the only enjoyable thing about doing them is the tax refund you might get from the government.
If you’re getting money back this year, the personal finance website ThePennyHoarder.com has expert advice on the smartest ways to use that refund to set yourself up for future financial success.
Here are seven ways to best use your tax refund, according to The Penny Hoarder:
1. Emergency fund.
Experts say this is an excellent use of your refund if you don’t have three to six months of living expenses hidden away for safekeeping.
2. Pay debt.
If you’ve got debt like so many of us do, using your refund to pay it off or make a dent in your balance will save you from spending money on interest in the future.
3. Retirement funds.
Planning for your future is always a good idea. Use your tax refund to put more money into your retirement fund and remember, you can make a one-time contribution without changing your monthly allowance.
4. Save for a future expense.
Do you have a kid who needs braces or a car you know will soon need to be repaired? Put your tax refund towards paying for a future life event so you don’t have to dip into your savings to cover the costs.
5. Invest in yourself.
If you’ve been wanting to start a side hustle or perhaps take a continuing education course, now’s the time to do it. Using your tax refund in a way that will make you more money in the future is always a smart idea.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
6. College fund.
Tuition is expensive. Prepare for the hefty price tag of higher education with a 529 college savings plan.
7. Home improvements.
From updating your kitchen to upgrading your appliances, experts suggest using your refund on projects that can increase the value of your home when it’s time to sell.
Just a reminder, Tax Day is Tuesday, April 18 which means you’ve got less than a week to submit your paperwork or file an extension.
Contact Carolyn Bruck at cbruck@wcnc.com and follow her on Facebook, Twitter and Instagram.