What to Do With Your Tax Refund (Before It Disappears)

A tax refund can feel like a fresh start. It’s an opportunity to catch up, get ahead, or make progress toward your goals. But without a plan, it can also disappear faster than expected. Taking a little time to decide how you want to use your refund can help you make the most of it.

Here are a few thoughtful ways to put your refund to work.

Strengthen Your Emergency Savings

If unexpected expenses come up, having savings in place can help you avoid relying on credit cards or loans. Even setting aside a portion of your refund can make a meaningful difference.

Building a financial cushion helps create stability and peace of mind.

Quick Tip:
Start with a goal of saving at least one month of essential expenses, then build from there over time.

Pay Down High-Interest Debt

Using your refund to reduce debt, especially high-interest balances, can help you save money over time. Lower balances often mean less interest and more room in your monthly budget.

Even a partial payment can help you move forward.

Quick Tip:
Focus first on balances with the highest interest rates or smallest balances for a quick win.

Set Aside Money for Future Goals

Your refund can be a great opportunity to support longer-term goals, whether that’s saving for a major purchase, building your savings, or planning for something important to your family.

Even small steps can help you make steady progress.

Quick Tip:
Consider dividing your refund between immediate needs and future goals.

Make a Plan Before You Spend

There’s nothing wrong with using a portion of your refund for something enjoyable. The key is deciding in advance how you want to use it, so it supports your priorities instead of disappearing unexpectedly.

A simple plan can help your refund make a lasting impact.

*The information provided here is for informational purposes only and does not constitute financial advice. Consult with a qualified financial advisor before making any financial decisions.