Brett Fingerhut discusses some of the best uses for your tax return.

1. 3/22/22, 9:27 AM Best Uses for Your Tax Return - Brett Fingerhut
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Best Uses for Your Tax Return
by brettfingerhut | Mar 15, 2018 | Brett Fingerhut
It’s tax return time, and that means millions of Americans will receive a sizable check
straight from the government. Many Americans spend this money right away, but others
hang on to it, unsure of what to do. After all, we don’t often receive several hundred
dollars with no strings attached (or bills to pay). If you are unsure of how to use your tax
return, consider one of these options.
Pay Off Debt
If you have any credit card debt or a loan with a high interest rate, take the opportunity to
pay down this debt right away. Just make sure to pay it the way you want; paying toward
principal will lower your future payments, but making future payments is smart if you think
you may be strapped for cash in a few months. You should still continue to pay each
month, regardless.
If you don’t have high-interest debt, you can also apply your tax return to a low-interest
loan, such as a mortgage or student loans. Any dent in your total amount of debt will result
in less headaches down the line, so consider it a present to yourself.
Up Your Savings
Everyone should have an emergency fund for the unexpected problems in life. A tax return
is a great opportunity to add a large chunk of money to that fund. If you have a sizable
emergency fund, though, you may still want to add your return to a savings account. It can
be helpful for buying a house, a car, or even a vacation.
Invest Wisely
Investing is one area I won’t give strict advice on, because everyone has their own
investment style. However, one thing everyone should consider investing in is themselves.
Whether this means contributing to your retirement fund or taking an online class to learn
a
a

2. 3/22/22, 9:27 AM Best Uses for Your Tax Return - Brett Fingerhut
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a new skill, you should consider spending your money in a way that will positively affect
your future. Other than that, you could invest in the stock market or cryptocurrency, or
even government bonds.
Buy a Necessity
Everyone needs something at one point or another. If you absolutely need a certain item
or need to get something fixed or replaced, take your tax return as an opportunity to get
this done. Just make sure that what you need is an actual necessity and not something you
just really want.
Having an extra couple hundred dollars on hand is a great way to overspend and get
yourself in trouble. However, there are plenty of responsible ways you can use your tax
return to benefit yourself. Consider using one of these tips and making a smart decision
with your money.
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