by Kaye Kasza
Are you looking forward to getting a tax refund? A tax refund is a welcome bonus! Whether it is $300 or $3,000, the way you use that money can have a real impact on your personal and financial well-being. Want a new computer? Newer car? Bigger flat screen TV? According to Extension Agent Kaye Kasza, these four ideas are better for your financial well-being:
- Pay off bills. Your first priority should be any monthly bills you have gotten behind on. Prioritize your other debts so that the ones with the highest interest rate are paid off first.
- Save for needs in the coming year. Emergency Funds - Having money saved for emergencies can get you through predicaments like car repairs or medical expenses. If you lose your job, an emergency fund can keep you afloat until you find another income source. Occasional Expenses - Big bills that come once a year or every few months cause huge problems for families. Avoid problems by being ready for the bills! Use your tax refund to start a special savings fund and then keep adding to it throughout the year.
- Save for long-term goals. Use your tax refund to make progress toward long-term goals. Small amounts add up. Adding just $500 a year into a retirement account such as an IRA can make a difference over time. Take the 'small amount' plan one-step further by making a monthly contribution too.
- Save for special purchases. Do you need a new refrigerator? Or furnace? Or.....? Those purchases have value too. Some may be essential, while others simply add enjoyment to life.
To learn more about family resource management, contact your local Extension Office: Baca County 719-523-6971, Bent County 719-456-0764, Cheyenne County 719-767-5716, Crowley County 719-267-5243, Kiowa County 719-438-5321, Otero County 719-254-7608, Prowers County 719-336-7734. Or find us on the web at: http://www.extension.colostate.edu/SEA