What you really need to do with your tax refund.
Money Magazine recently asked me the best way someone should spend their tax refund. I immediately told them that they should go out and buy a new TV.
Oh, come on! You know me better than that.
Here’s what I really said.
Whether your refund is in the thousands or hundreds, the urge to spend the funds might instantly become overwhelming. Maybe you already had an idea of what you want to spend the money on and you’re all set to hand over your refund for it. Or, maybe the money means you finally have enough to make a large purchase you’d otherwise need to save for.
“People often look at their tax refund as found money like lottery winnings or inheritance. The temptation to spend surprise money on something fun or frivolous is strong,” says Denver, Colo.-based Certified Financial Planner Kristi Sullivan.