It’s tax time! Will you be getting a refund? Financial planner Joni Kearn from Freedom Financial has some tips on how to spend your tax refund wisely. Kearn says 50 percent should go to paying down debt, 25 percent should be put away and the final 25 percent can be used for something fun.
50% – Pay off or pay down a debt. Highest interest first Credit cards ONLY if you don’t use it again. Freeze it in water for emergencies. Put a lump sum on an auto. It will be paid off early. Pay the escrow on your mortgage.
25% – Put this away Get a CD (certificate of deposit) for emergencies Open a Christmas Club account – now Christmas is paid for!
25% – This is your spending money. A summer vacation with your family The new tires your car should have A new refrigerator