Tax Rebates & Refunds

3 savvy ways to spend your tax refund

February 24, 2013
Posted in Tax Rebates — Written by Jennifer

When you receive a tax refund, especially one that comes out of the blue, the temptation is to spend it on something frivolous. People spend their rebate money on everything from holidays and days out to electronics, gadgets and clothing.

However, there are more sensible things to do with your tax refund. If you are financially savvy, you will see the longer-term benefits of the following ideas:

1. Make home improvements. Spending money to improve your home is a way of investing in it and hopefully improving its value. Not only will you enjoy your nicely decorated and improved home, but you will also benefit when the time comes to sell it.

2. Pay your debts and catch up on your bills. Clearing existing debts and paying bills in advance is a really smart way to use your tax refund money. If you have credit card debt, pay off your balance in full and you can even save money by cutting the amount of interest you’ll have to pay.

3. Put the money in a high-interest savings account. Savings accounts and ISAs are great places for your tax rebate, allowing you to start earning interest on the money right away. In a few years, you will have a tidy sum on your hands.

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