If you’re anticipating a tax refund this spring, you may also be plotting how best to spend the money. And while a lavish vacation or virtual shopping spree sound appealing, there are other ways to treat yourself while securing your financial future. Below, a Bullhead City, AZ, lawyer from Knochel Law Office shares several smart and practical ways to spend your tax refund.

A Lawyer’s Guide to Investing Your Tax Refund

1. Pay Down Your Credit Card Debt

Paying down credit card debt is one of the smartest ways to use your tax refund. Not only will you reduce interest, but you’ll also help alleviate financial strain. If the total amount does not cover your balance, consider consolidating your debt into a balance transfer credit card or debt consolidation loan to obtain a lower interest rate. The sooner you can pay off what you owe, the sooner you’ll enjoy financial freedom.

2. Invest in Your Retirement

Consider funding an individual retirement account (IRA) or add to an existing 401(k). The money you contribute will go towards your future and may be tax deductible, increasing your refund in the long run. Moreover, if you choose to invest in a Roth IRA, the principal will grow tax-free, setting you up for a worry-free retirement. 

3. Save It for a Rainy Day

There’s no telling when a job loss, car repair, or medical emergency will strike. Creating a rainy day fund provides you with added peace of mind if you run into financial trouble down the road. Build a cushion of three to six months’ worth of expenses in an accessible savings account to avoid relying on your credit in case of an emergency. 

When it comes to investments or issues of bankruptcy, turned to the skilled legal counsel at the Knochel Law Offices. Serving Bullhead City and the Arizona, California, Nevada Tri-State area since 1982, their lawyers will provide you with the advice, guidance, and representation you need to obtain the return you’re after. Contact the practice online or call (928) 444-1000 to schedule a consultation with a lawyer today.