My friends who attack their finances with the precision of a money ninja think tax refunds are for the birds. They have figured out their paychecks just so – and manage to not give their federal and state governments more than a dime than they have to. When tax season rolls around they don’t owe anything and they don’t get a refund. It’s just another day in their life of budget dominance.
For the rest of us who aren’t that savvy or math inclined, tax season often means a big check in the mail from Uncle Sam. That can be especially true if your financial situation changed dramatically over the year (examples – you got married or had a baby).
Our friend Scott over at USAA found himself with a refund this year. He said they decided to put it away in a special, designated account to pay for some anticipated children and maintenance expenses later. He said his team often suggests people use their refund cash for things like Roth IRA contributions, debt reduction or emergency fund nest egg.
If you haven’t already gotten your anticipated refund, you probably will soon (after all, that filing deadline is coming up fast on April 15). What are your plans for that cash? Take our poll below and see below how you to stack up against our other readers.