Four ways to use the tax refund

This is that time of the year when many of you might be receiving tax refund. While the first thing that comes to your mind is to go for vacation or buy the latest gadget. Nevertheless, it can also be used to improve your finances.  Well, it does depend upon individual financial situations and goals, but we discuss here some better ways to utilise the tax refund.

Contribute to retirement fund

There are chances that you may be falling short of the amount that you require for the retirement.  Even if you have planned well your retirement corpus but you can always use the IT refund to increase your retirement corpus. This will help you to improve your nest egg.

Pay your credit card dues

If you are one of those who are only interested in paying only minimum amount due on your credit card, then you should consider paying the dues with your IT refund. The reason being, the credit card dues come with higher interest rate and hence the sooner you repay the dues, the better you save on interest cost and thus, attain financial freedom a bit earlier.

Add to your emergency fund

You have already made provision for emergency fund; however, if you put your tax refund into your emergency fund, you can be in peace of mind knowing that you have the money needed to cover any expenses that are not included in the emergency fund. There are chances that you have a flat tyre and you need to change or a small medical procedure or replacement of one of your electronic appliances.

Invest in yourself

One of the best ways to boost your future finances is to invest in yourself and learn a new skill that will help you to move ahead in your career or in your personal life. Therefore, use your tax refund to lift up your education or join some course that will strengthen your job skills and prepare you for higher positions.