Clarity Financial Counseling

OK, you’re going to receive a tax refund, hopefully not too large, because it’s money you have generously lent to the government, interest-free!  What to do with it when you receive it?  The common course is to apply it to credit card debt.  Not a great idea!  What?  Here’s why:  sure it makes you feel better to pay down on that debt.  But…do you have money put aside in a Life Happens fund?  If not, how will you pay for the next unforeseen expense, such as insurance deductible, losing your glasses, a wedding gift?  If the only option is to charge it, you’ll be right back where you started.  Take a portion of your tax refund and SAVE it for those unexpected expenses!  You’ll be well on your way to stabilizing your finances.  The more you have put away, the less you have to go into debt.