4 Things to do with Your Tax Refund

posted 4/10/2013 in General

What are you dong with your tax return?

With tax season coming to an end, many of you may have sent in your taxes and gotten your refund. What are you going to do with your check? Some of you may know, others may not have the slightest clue. For those of you looking to use that check before it burns a hole in your pocket, Lincoln Savings Bank has come up with a few suggestions. Who knows? Maybe some of you with plans for your check will be swayed!

Pay Down High Interest Debt- credit card debt can rack up quickly, especially with the national average interest rate on credit cards being 14.96 percent! You can use all or some of your refund to pay off your high interest debt from credit cards or other debt that has been accrued from student or personal loans.

Build an Emergency Fund- with the financial markets as they are now, you can't afford to be without some money to lean on in case of hard times. Markets may drop out, you may lose your job, or prices can (and most likely will continue) to increase. A separate savings account for emergencies only should contain about 6 months of expenses to be completely ready for use.

Invest.in your Vehicle- take care of the things that take care of you, right? If you've been putting off repairs or maintenance for your car, a tax refund may be the best way to get them made. We're no mechanics, but better maintained cars are more efficient, meaning you'll also pay less for gas. Double bonus!

Treat Yourself- you don't have to be completely responsible with your tax return. If your finances are pretty sound, take the family out for a nice dinner and a movie. Or, better yet, you can invest in your community like Erik Skovgard, President of our LSB Financial Services, suggests: "If your refund is burning a hole in your pocket, then I encourage you to buy local.  Step away from your computer and drive past the big box stores and chains.  Check out a locally owned establishment and make your purchase an experience of Iowan hospitality and caring service.  You might even make a new friend in the process!"

    Whatever you decide to do with your tax refund, make sure it serves a purpose in your life so you're not just throwing your money away. If you wish to use it for your finances, the experts at any of our locations can help you out. We look forward to seeing you soon!
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