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Using your tax refund wisely is something most of us struggle with. It can be hard to resist splurging with your refund and going on a shopping spree. But there are many benefits that can come from using your tax refund money responsibly to better your circumstances.

Instead of using your tax refund to treat yourself this year, try using it to better your future financially. Here are a few ways you can use your tax refund wisely to benefit your finances in the long run.

Pay Off Debt

If you have existing credit card debt, a smart way to use your refund is to pay down your balance.You can significantly reduce the financial burden of credit card debt by using your refund to pay off your debt.

Save for Emergencies

It’s ideal to have 3 to 6 months worth of income saved in an emergency fund. Open a savings account to put away an amount of your refund you can use in the case of an emergency.This can be especially useful in the event of your car breaking down or unexpected medical expenses.

Invest in Stocks

It might be a smart idea for you to invest in a stock you believe has potential for growth. Do your research or consult a financial professional to discuss your future financial goals. It’s better to use the extra money from your return in this situation than to dip into your savings or checking account. Mobile apps such as Robinhood and Acorns make it quick and easy to find smart stocks to invest in.

Open a Savings Account

Of course it’s always a good idea to start a savings account and start planning for your future. You can use a savings account to kickstart your financial goals and save for something big like a vacation or career investment. Putting the money aside means you’ll be less likely to spend it quickly on splurges.

Donate to Charity

Your tax refund gives you an opportunity to make a difference in your community. Choose a charity that’s close to your heart. You can save your receipts from donating for next year’s tax deductions.

Using Your Tax Refund Wisely

When you receive your tax refund, there are plenty of ways to go about utilizing it. Take some time to plan out what will work best for your financial situation and choose to use it in a way that will benefit you. Using your finances wisely can greatly reduce your interest rates in the future.

For more ideas on how to get the most out of your tax refund, join the conversation