Are you ready to take action? If you decide retaining more of your paycheck is better for your financial future, but you're concerned that you might spend the extra money, there are some great options. An automatic payment using online banking or a payment service such as CheckFree can remove the money before you have a chance to burn through it.
You could set up an automatic payment that takes money out of your checking account and puts it into a savings account, and you can watch that savings account grow. You may instead want to set up an automatic payment toward high-interest loan accounts. Paying off credit cards, for example, can save you substantial amounts of money when you stop paying those high interest charges. You can also set up an automatic payment to have that extra cash go toward your IRA contribution, which earns you money and lowers your tax bill.
Alternatively, if you believe you can refrain from spending the extra cash, then enjoy having a bit of spare money around. It's handy when it comes to needed home repairs, family vacations and maybe even a little surprise for yourself!
For more tips on taxes and finances, check out the links below.
- Davies, Wayne M. "5 Reasons Why You Should NOT Get A Big Tax Refund." Insider Reports. (Jan. 5, 2011) http://www.insiderreports.com/storypage.asp?StoryID=20006798
- Updegrave, Walter. "3 ways to use your tax refund." CNNMoney.com. March 18, 2010. (Jan. 5, 2011) http://money.cnn.com/2010/03/18/pf/expert/investing_tax_refunds.moneymag/index.htm