Bang for Your Buck: Spend your tax refund wisely - Action News 5 - Memphis, Tennessee

Bang for Your Buck: Spend your tax refund wisely

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WMC Action News 5's Andrew Douglas focuses on the best and smartest ways to spend your tax refund. WMC Action News 5's Andrew Douglas focuses on the best and smartest ways to spend your tax refund.

(WMC-TV) – Tax season has come and gone for most of us, which means if you are owed a refund, you either have it by now or are expecting it soon.

So, what should you do with your refund?

Are you dreaming of a warm sunny beach or maybe a plane trip to an exotic city? There are so many ways to spend that tax refund, but before you regret it, www.smartmoney.com has the following suggestions:

1. Create an emergency fund to help pay six months of bills in case you lose your job.

2. Pay off debt, such as those credit card bills with a 20 percent interest rate.

3. Contribute to an IRA or a 529 college savings account.

4. Let yourself splurge a little bit. Take a short vacation or buy that big screen HD TV you've been wanting.

What's the worst thing to do with your tax refund? According to www.bankrate.com, it's short term thrills like a big night out at the bars with friends or a night at the casino. The next morning you may say, 'Doesn't that stink?'

Spend some of that refund, but spend it wisely. The bottom line: pay yourself first, then pay your creditors, and make sure you reward yourself for all that hard work.

If you have an idea for WMC Action News 5's Andrew Douglas go to his Facebook or Twitter page or email him at adouglas@wmctv.com.

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