February 18, 2025 - 01:39
As tax season approaches, many Americans find themselves delaying their filing, with a significant portion waiting until the last minute. Once the dust settles and the tax refund arrives, it becomes crucial to make wise financial decisions regarding that money. Financial expert Ross Mac emphasizes that a tax refund is essentially a return of your own funds, which were overpaid to the government in the previous year.
Mac advises that the best use of this refund is to tackle high-interest debts, particularly credit cards that can carry interest rates soaring as high as 30%. Paying off such debts can lead to significant long-term savings. For those who are fortunate enough to be debt-free, Mac suggests prioritizing the establishment of an emergency fund. This fund acts as a financial safety net, providing peace of mind in case of unexpected expenses.
By approaching your tax refund with a strategic mindset, you can enhance your financial health and work towards greater stability.
