Tax Rebates & Refunds

5 smart ways to spend your tax rebate

January 17, 2013
Posted in Tax Rebates — Written by Geoffrey

A tax rebate can come in incredibly handy, especially when money is tight. However, it can be tempting to spend recklessly when a reasonable sum of money comes to you unexpectedly.

To help you to make the best use of your tax rebate, here are 5 smart spending ideas:

1. Pay your debt – this is arguably the best way to use your tax refund, to clear your debts and give you peace of mind that no one is chasing you for money.

2. Pay your bills –you can use your tax refund to pay your bills for a few months or even just one month, and that will be one less thing to worry about.

3. Start a savings account –depositing your tax refund into a high-interest savings account or ISA is a very smart thing to do, allowing you to accumulate interest and save for your future.

4. Start an emergency fund – most people have savings, but an emergency fund is money that you don’t use on a regular basis but that you have access to if you really need it (for example, you lose your wallet and need to pay for something on the spot).

5. Buy a car (or get your car fixed) – if you don’t have a car but could really use one for commuting, using your tax rebate to buy one is a sound investment. You can also use your refund to get your existing car back on the road.

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