With the Money You Save Paying Off That High-Interest Credit Card, You Could Buy a Set of Hostile Wheels

In a recent post, we discussed the many cool things you could buy with your tax refund. And while a 150-gallon fish tank or a foosball table would be awesome to own, they are hardly practical and may even be considered a waste of money. Besides, your wife would kill you if you bought a fish tank that big.

So then just what are you supposed to do with the big chunk of money you will be getting back from the government? If you are getting a headache from thinking too hard about how best to spend your money, we can help. Here are a few smart uses for your tax refund.

Pay Off Debt

If you are like the majority of Americans, you have some sort of debt you could be paying down or off. Using your tax refund to pay off a credit card balance with an 18 percent interest makes good financial sense. With the money you save in interest alone, you could buy yourself a set of Hostile wheels for your truck.

If you have student loans, or if your wife does, paying those down will free up more money for you in the future. A sound investment indeed.

Save for College

If you have children, you certainly want them to make the best possible life for themselves as adults and this starts with a college education.

As we all know, college isn’t a free ride, nor is it inexpensive. Now is a good time to start a college fund for the youngsters with the money you receive from your taxes refund. Your children will thank you for it down the road.

Emergency Fund

You know how life does, everything is running smooth and then, when you least it expect it, something breaks. If the microwave doesn’t blow up, the water heater will. Seriously, your home and everything in it is just a massive time bomb waiting to go off.

Use your tax refund to build a bit of an emergency fund. This way, when the washing machine dies, you can simply go buy a new one instead of having to drive your wife to the laundromat.

Boost Your Retirement Savings

It may still be several decades away, but with a little luck, you will retire someday. In all likelihood, you probably aren’t putting in what you can into your retirement plan. The extras money from your tax refund will work hard to help provide the kind of retirement you are dreaming about.

Home Improvements

Your tax refund might not be enough to remodel your kitchen, but there are plenty of other home improvements that need to be done.

Your home is the single biggest investment you will probably ever make. So it makes perfect sense that you invest in your home. Whether you need a few rooms painted, need to replace a bathroom sink or need to re-tile your kitchen sink backsplash, it all adds value to your home.

Open a Savings Account

Even though annual interest rates for savings accounts are rather low, it still beats throwing your money away on a riding lawnmower. Any interest you garner over the years is extra money in your pocket when you decide to use it.

Take a Trip

You could spend your tax refund taking the family out to dinner at Applebee's or Olive Garden and then going to see a movie, but that is a rather mundane outing that will soon be forgotten. Instead, use your money to plan a nice family trip. It will be an experience that will be remembered for years.