Are you expecting a tax refund this year? If so, you probably already have plans for how you're going to spend it - new clothes, a weekend trip, that big screen tv you've been waiting to buy. This year, instead of going on a shopping spree, why not put that money to work for you?
One financially-savvy decision would be to pay off any high-interest debt you may have ... you know, those credit card bills leftover from the holidays. The Federal Reserve estimates that credit card debt has reached a level where every man, woman and child in the United States would owe almost $3,000.
Another wise choice may be to invest in your retirement or your children's education. If your employer offers a matching contribution to your 401(k), you can double the amount of your refund. And investing in a 529 college savings plan is a way to prepare for your children's educational costs without gift-tax consequences.
Sure, you can get instant gratification by spending your tax refund, but wouldn't it be much more satisfying to try to reach your financial goals and invest in your long-term happiness?
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