YOUNGSTOWN, Ohio (WKBN) – Some people may think this is the most wonderful time of the year. Who doesn’t love getting their tax return? But, the real question is – will you spend it wisely?
According to mint.com, Americans saw an average of over $3,000 on their returns in 2019.
Local financial expert Jessica Popio says there are great ways to use that cash. Here are just some suggestions:
- Make an additional payment on a credit card bill
- Build up your emergency fund
- Save for a vacation
- Tune-up or vehicle repair
- Home improvements
- Replace old or broken appliances
- Start a savings plan
“You are really going to appreciate yourself in the future. You’re never going to tell yourself, ‘Man, I wish I would have saved less money.’ Some people put away 10 percent to 20-25 percent,” Popio said. “Five dollars a day times five days a week for one year is about $1,300. You will have $13,000 at the end of 10 years.”
Popio says investing your tax return in ways to improve yourself and profitability is a good idea, too. Taking a class or learning a new skill is a good way to do that.