How to Use Your IRS Income Tax Return

The Three (3) quickest things you should to do with your IRS income tax return before it’s too late.

1. Pay off your debt if you can and have any – If you have a credit card debt or any other, you should think about getting rid of the debt (If you have enough return) if not at least reducing it. This is a perfect time to do it. You should apply at least 60% towards that debt. And, if you have a positive residual amount (Meaning the 60% paid off the debt and you still have some money left from that percentage) after applying the 60%, add the remaining to #2. Meanwhile, if you didn’t have any debt in th first place, you should apply the entire 60% towards #2.


2. Open a savings account if you do not have one – When you do or if you did, next make a deposit into that savings account. You should put at least 20% to help you start building an emergency funds. If you did not have to apply 60% towards any debt in the first place, at this point you should now have 80% in your savings, of which you could later on use 50% of it as emergency fund and the remaining 50% towards a short or longtime investment such as CD... and hopefully to help you towards a good financial life.

3. Apply the remaining 20% into your checking account to help you with your daily expenses. This is also where you should get the money to buy what you’ve always wanted to buy. If the percentage cannot suffice to get you what you always wanted, wait you shouldn’t afford it at the moment.