Rebuild Your Emergency Fund Using Your Refund Money
If you are just like a few other people that have filed their 1040 or 1040ez forms online and have gotten your tax refund from the Internal Revenue Service then you probably have thousands of dollars lying there with you and thinking what to do with them. With the average refund size for last year being a little over $ 2500 and a little over $ 3000 for the current year, you are bound to have all that extra cash lying around with you. One good place to invest this money is to replenish your emergency fund that you used up last year. Many people raided their emergency funds last year and then had little extra money to restore them.
You can use your refund to start rebuilding this crucial fund for yourself. Having this fund can avoid you landing in credit card debt in case you have an emergency. You can keep the money easily accessible in a money-market account or savings account that earns interest.
So you can put your money to good use in this way and be prepared for future times. I know it might be tempting for you to go to Vegas with all that cash at hand, but one must also save money for bad times if they want to get out of it easily. Think about the refunds that you will get while you file your tax online.
One thing that we need to think about is our retirement plans and we can use our refund money to fulfill these plans and have a better post retirement life. Here is what you can do with your refund money.