Tax Hacks 2018: How Not to Blow Your Tax Refund

Uncle Sam and taxes
Sean Locke Photography / Shutterstock.com

Ready for a nice, fat refund check from Uncle Sam? Before you get too excited, soberly think about how easy it is to waste that money foolishly.

All too often, extra money makes people splurge, even while they imagine they’re saving it. How do you make sure this year’s windfall makes your life better over the long haul? Try these nine ways.

Idea No. 1: Pay down high-interest debt

Credit cards close up.
Ti_ser / Shutterstock.com

High interest rates on your debt can lead to devastating costs. Eventually, you can end up with payments so large that it becomes difficult to do more than pay the minimum required each month.

That’s why one of the best uses for a windfall is to use it to pay down, or pay off, debts with the highest interest rates.

Think of this way: Paying off a debt with a 15 percent interest rate is like earning 15 percent, risk-free and tax-free. That’s an investment virtually impossible to find these days.

When you’ve paid down debt, don’t stop. If credit-card debt, payday loans or other high-rate debts have been a problem, use this moment to escape the cycle. Choose from trustworthy sources of free credit counseling and get help.

Popular Articles

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

5 Secrets to Keeping Your Brain Sharp as You Age
5 Secrets to Keeping Your Brain Sharp as You Age

Forget young at heart — science says these tricks will keep you young in mind.

12 Ways Retirees Can Make Money Without Un-Retiring
12 Ways Retirees Can Make Money Without Un-Retiring

These simple ways of earning largely “passive” income can stretch your retirement dollars, cover unexpected expenses or just help you afford a few extras.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Trending Stories

Comments