Suggestions that you can do with your tax refund.

Tax season has approached and the last thing you need to spend that extra cash on is frivolous things that will not last you beyond today. Here are some suggestions of what to do with that extra money.

Make an extra credit card payment to reduce your interest costs. It may be a drop in the bucket compared to what you owe but it will make a dent in your credit card debt over time.

Make your living space more energy efficient. Replace the lightbulbs in your home to CFLs, install programmable thermostats, air seal your home and so on. These things will reduce your monthly energy bill and will pay you dividends in the long run.

Make a principal only payment towards your mortgage. Make sure your lender is applying the payment towards principal and within a year of doing this, your mortgage will be paid off earlier and you’ll save in interest.

Invest in yourself. You may want to increase your earning power so make yourself more marketable by improving your skills.

If you have the luxury to, establish a rainy day fund. Most families don’t have many dollars remaining at the end of each month and we all encounter unexpected expenses such as car expenses or your furnace going out. When we hit these roadblocks we no longer need to throw our budget into overload, we can simply tap into our rainy day fund.

Getting back money feels good and although it feels like it’s “extra money”, try and remember that it’s not. This money was always yours. It was just held for you until you filed your taxes so now that you have YOUR money back, think seriously about it and what you want to do with it!

For more tips on managing money, please visit:www.prudentfinancial.net
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