Many of you will be receiving a tax refund this year. We all have different plans for our tax refunds, but this infographic from DriveTime is fascinating snapshot at what most people plan to do with their tax refunds. I shared 10 ways to spend or save your tax refund recently.
The average refund is over $3,000. That’s a lot of dough no matter how you look at it. While it’s easy for that money to get lost in your bank account by buying a few extras and getting ahead on your bills-a little bit of planning can make a huge impact on your financial goals.
Save your refund:
Planning to save your tax refund? You’re not alone. And you have good reason to save since most Americans have little to no savings. The key to saving is to keep your savings separate from your daily spending account. I recommend Discover’s high yield savings account. You’ll still be able to access your funds, but you won’t be tempted to use the money for everyday expenses. It’s a great way to start an emergency fund.
Pay off debt:
Another popular option is to pay off debt. Since Americans are deep in debt this is most likely the best option for anyone who has debt and receives a tax refund. It allows you to save in the long-term, too. You’ll be saving big by not spending on interest.
Now here’s the infographic:
How do you plan to spend your tax refund if you will be (or have!) received one?
Infographic courtesy of DriveTime.