Instead of spending your tax refund this year on something that may not last beyond today, why not consider putting it towards something that will help make your financial future grow?
- Make an extra credit card or house payment to reduce your interest costs.
- Consider buying a U.S. savings bond. You can purchase these bonds from most banks, credit unions, your workplace, or online by visiting: www.savingsbonds.gov.
- Get an automatic payroll deduction that goes directly to some type of savings vehicles. You can set it up with a bank or mutual fund company, and start the account with your tax refund.
- Contribute to an IRA. If you qualify for a tax-deductible IRA, you have until April 15th to contribute and claim the contribution for your current tax return. Or, you could put your tax refund into an IRA for the following tax year.
- If you qualify, open a Roth IRA. Even though you don’t get to deduct the contribution from your taxes, the Roth IRA provides a tax-free way to save for retirement.