Where Does Your Tax Refund Go?
Last month, many of you breathed a sigh of relief that tax time was over. For others, you filed your return as quickly as possible to get your long awaited refund. The question is what will you do with your refund? For many, their refund is like having a savings account that they cash in once a year. According to freetaxprep.com as reported in USA Today, Americans use their refunds in many different ways.

Pay Off Debt
Twenty-six percent of you will use your refund to pay off debt. Unfortunately, that debt was most likely accrued from holidays gifts purchased several months back. Yet, with the amount of interest being charged on much of the credit card debt, it makes a lot of sense to pay it off.

Save or Invest
Twenty-six percent of you will save or invest your tax refund. Although the stock market isn’t expected to do as well in the future as it has done in previous years, it’s still considered to be a wise choice.

Buy Products
Nineteen percent of you are expected to buy larger ticket items, such as cars, electronics and furniture. The refund is like life’s little reward for working so hard that year.

Make Home Improvements
Eleven percent of you will take your

refund and improve your home.

Since most home improvement projects run over budget keep in mind that you may be able to tap into your home’s equity for additional funds at much lower interest rates than standard loans.

Take A Vacation
Six percent of you will use your refund on a long awaited vacation. Somehow, it just doesn’t feel like you’re splurging when the money is coming back to you in the form of a refund.

Pay Mortgage/Education Loans
Three percent of you will pay down your mortgage or pay for additional education, whether it’s yours or your child’s.

Give To Charity
One percent of you will donate your refund to charity.

Other
Finally, 8% of you will do something else with your refund such as start a new business. After all, if you’re lucky enough to have a refund, why not do something with it that will generate more income to you.

As always, feel free to call me with any questions you might have. If you’re not sure what to do with your refund, I’ll help you make sense of it all.