• Home

Lesko: What to Do With Your Tax Refund

Posted:
By Fox 40 Staff.
jason: it's tax crunch time and greg lesko of lesko financial has some advice about your refund.
greg: thanks, jason.
getting a tax refund is not a great savings plan, because it's giving uncle sam an interest- free loan.
but many people seem to feel it's the only way they can save.
this year 8 out of 10 tax-filers will get money back, and the average refund is $2800.
now...you could spend that money...or it could become the first step on the road to a better financial future.
Jason: It's tax crunch time and Greg Lesko of Lesko Financial has some advice about your refund.

Greg: Thanks, Jason. Getting a tax refund is not a great savings plan, because it's giving Uncle Sam an interest- free loan. But many people seem to feel it's the only way they can save.

This year 8 out of 10 tax-filers will get money back, and the average refund is $2800. Now...you could spend that money...or it could become the first step on the road to a better financial future.

Jason: How could you put a refund to good use?

Greg: The first thing you might consider is paying down debt, especially high interest credit card debt. Or, how about setting up an emergency fund or adding to one you already have...so you won't need to go into debt when the unexpected happens.

Jason: What about retirement?

Greg: Yes, you could contribute to a workplace retirement plan or start an individual retirement account, if you qualify. You could also simply save the money, but better still, why not invest it and start growing wealth for the future?

Jason: Any other ways to benefit from a tax refund?

Greg: Joining a gym or taking fitness classes could increase your quality of life. And if you're already in good financial shape, you could donate to a charity and help out your community.

That could get you a deduction on next year's taxes. And instead of splurging on "stuff," you might use it to create good memories for you and your family.
the idea with any of these choices is to spend it on something that will bring lasting value and actually improve your life.