For those taxpayers who managed to get their tax returns in, refunds are coming their way. However, according to The Wall Street Journal, this year’s returns may not be as good as the previous year. A survey constructed by USAA, the financial company serving the military, estimated 53% of taxpayers should expect to get a smaller refund than they did the year before. However, with this reimbursement of money, how do you plan to spend it? Many taxpayers have been found to treat tax returns as ‘found money,’ putting the sum towards wants rather than needs.
The Wall Street Journal provides five beneficial ways to spend this income of money:
- Pay off your credit cards. Pay down any high-interest debt.
- Take a course. Learn new skills, or enhance your old ones. Different classes can prove beneficial to your career.
- Increase your 401(k) contribution. Put money towards your retirement-savings plan. This is also a great way to invest in the stock market.
- Pay down your mortgage. You may benefit by using surplus funds to pay down your debt. Itemize your tax deductions if you exceed the standard deduction.
- Gamble on … Italy. Invest in Italy’s stock market. National savings are higher than in most countries, and the debt levels are lower.
For more information visit, http://online.wsj.com/article/SB10001424127887324485004578426853759078098.html?mod=WSJ_hps_sections_personalfinance.