Columbia, S.C. (WLTX) - The deadline to file your taxes with the IRS is next Monday. Last week, the VITA program visited WLTX and answered your tax questions about filing. Today we're tackling what you should do with your tax refund!
Here are some steps you should take once you receive your check or direct deposit from your state and federal returns:
• Review Your 2017 Financial Goals - Any windfalls of money should bring you back to your financial goals that you (hopefully) set in January or February of this year. Use these as a road map to determine where additional money outside of your monthly income should go to achieve your financial ambitions for 2017.
• Start Your Emergency Fund or Add Your Next Level - There are levels to saving for an emergency. If you're starting from scratch, your goal is to save $1,000 as fast as possible. The average tax refund is over $3,000 and there's no better way to use the money
• Dump Your Debt - There are 2 ways to add money to your bottom line: 1) make more money or 2) reduce your expenses. Paying off debt does both. Create a plan listing all of the debt you owe and use your tax refund to reduce the highest interest debts that you currently have.
• Kickoff Your Investing - After you save some of your money for emergencies and reduce your debt, you can think clearly about growing your money. If you've wanted to invest in the stock market, but didn't know how or where to start, invest some time in thebmex.com/wealthystart for a free class that has a goal of teaching 1,000 new investors to take action and get into the stock market. It teaches you the basics before you buy your first piece of another company which will help you maximize your tax return if you decide to invest.
What are your plans for your tax return funds? Share your ideas with us @KnowMoneyInc with the hashtag #WLTX.