Creative Ways to Use Your Tax Refund

62% of taxpayers expect a refund of some amount for their 2017 filings this year. How about you?

Last year,  2016 tax refunds totaled over $302 billion – an average of $2,700 per tax filer. That’s a lot of money Americans loaned the government interest free! If you’re planning on receiving a refund this year, you need to decide how you want to use it!

Allow me to give you some suggestions.

First, recognize that a tax refund can be used to address problems or opportunities in your life.

Focus on building your emergency fund.  Most Americans have less than $1000 in savings, and yet experts say that 3-6 months of savings reduces financial vulnerability to medical expenses, job loss, or other unexpected events. Always, always, always have money set aside for true emergencies!

Perhaps you need to use some of the money to take care of yourself or your family. That may include healthcare needs, further education, or a deposit in a college fund. Maybe you need to apply some towards a family vacation.

If those areas are covered, then you can wisely invest. Consider making tax-free contributions to your IRA or 401k account. Extra money might be invested in mutual funds, stocks, real estate, or a small business only if you have a knowledge of these investments …or access to wise counsel.

If you tithe off your gross income, then you’ve already given from your refund. If not, then pray about giving to your church or supporting those you know that are having  kingdom impact.

Lastly, If you have credit card debt, pay it down. Our partners at Christian Credit Counselors can help you get out of credit card debt and show you how to best use your refund to pay it off. Get in touch with them by calling us at 800-722-1976 or go online to crown.org/ccc