Make the Most of Your Tax Refund

If you're like most people, when tax season rolls around, you file and then wait impatiently for your refund, which you've spent before, the check is even in your hands. How did you spend your refund? A new TV? Or that great vacation you've been wanting to take?

This year, think about doing something different with the money you get back from the government. The average tax refund in 2014 was $3,034, which is more than just a little extra spending money. Here are some possibilities for how to make the most out of your tax refund. Check it out!

1. Pay down high-interest debt. With more Americans getting further into debt, many financial advisors believe it is prudent to use your tax refund to pay off as much of your high-interest debt as possible and take refund advance. They advise making a list of all loans, balances and corresponding interest rates. Start by paying off the highest interest rates first, and work your way down from there!


2. Start an emergency cash fund. The majority of financial advisors recommend setting up a separate account with three to six months of living expenses saved in the event of a layoff or unforeseen health problems that aren't covered by insurance. Keep this emergency account separate from your checking and savings accounts, so as not to drain this fund for non-emergencies.


3. Invest for your retirement. If you decide to put away your refund for long-term savings, advisors recommend putting it toward your retirement by adding more to your employer's retirement program or a traditional or Roth Individual Retirement Account (IRA) if you are unable to contribute more to your employer's program.


4. Invest for your child's college education. After you've built up your own retirement account, you can turn your attention toward building your children's or grandchildren's college savings plans. Talk to your financial advisor about which manner best suits your situation.


5. Add to your regular mutual fund investment account. If you are already contributing the maximum amount to your retirement account, advisors recommend investing in a regular taxable mutual fund to help your money grow.


6. Give back. If you don't have any debt and your retirement savings is sufficient, what about making a charitable contribution to help others in need. Giving back to your community is so much better than blowing the money on expensive personal desires.

We know that making smart financial decisions isn't always easy. So whether you're just starting to look at all the different ways to use your 2015 refund or are already planning to put your refund towards your long term financial goals, remember that your tax refund does not have to be used for only one thing. Instead of frittering your tax return away, use the money for any of the suggestions above and save that shopping spree for a later date.

If you're looking for more ways to spend your money wisely, allU.S. Credit Union is here to help. To find out about allU.S. savings and checking account opportunities give us a call or stop by our branch. allU.S. (https://alluscu.com) can help you make the most of your tax refund and provide you with the tools you need to help your money grow!