Putting your tax refund to work for you

ARDMORE, Okla. – Despite the dread that visits annually during tax season, many Oklahomans often anticipate receiving a refund.

While it is fun to dream and plan how to spend the windfall, do not forget to put some thought in ways those dollars can help create a brighter future for financially savvy families.

Of course, it’s okay to use part of your refund on something fun, but this is a great opportunity to look at ways to help you and family advance your financial goals.

Whatever the size of the refund check, here are three solid ways to make those funds work in the longer term.

Pay off high-interest debt. It can be hard to make meaningful headway on credit card and loan balances when only covering the minimum payment.

In many cases, paying the minimum each month means most of that money is eaten up by interest. Use your tax refund to pay a lump sum against the entire balance.

Create or add to your emergency fund. In the event of an unexpected bill or loss of income, an emergency fund can help soften the blow to the family’s budget.

Families should work toward building up enough savings to cover their living expenses for 3 to 6 months.

Establish or advance other financial goals. Achieving long-range savings goals like building a retirement fund or buying a home takes discipline to consistently set money aside. Even modest amounts add up quickly.

Oklahoma State University, U.S. Department of Agriculture, State and Local Governments Cooperating: The Oklahoma Cooperative Extension Service offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, or status as a veteran, and is an equal opportunity employer.

This article originally appeared on The Daily Ardmoreite: Putting your tax refund to work for you