If you’re one of the many who are getting ahead of your taxes, those refunds should come in rather quickly.
So what do you do when you get that refund?
Mark Foster from Credit Counseling of Arkansas has these suggestions on how to manage your tax refund:
- The average refund is approxmately $3,000 and people should have a simple game plan in advance for how they’ll spend that money or else it may get “frittered” away on various stuff (typically fun stuff).
- We advise people to put their NEEDS ahead of their WANTS. Create or increase, an emergency savings fund, for example, instead of buying a new car or taking a cruise vacation.
- It’s okay to have some fun with our refund money, but the main focus should be on our needs, such as paying down any debt and increasing savings, getting a new set of car tires, etc.
- 39% of Arkansans say they have $0 saved up (with the possible exception of an retirement account). And 68% of Arkansans say they have less than $1,000 saved! So one of the best things Arkansans can do to break that living paycheck-to-paycheck cycle is to focus on building and increasing savings!
For more information on how CCOA can help you with your financial planning, click HERE.