Tips on how to wisely spend your tax return

For some, tax season can feel like winning the lottery. A big refund can mean unplanned cash in hand.  According to CNN money,  the average tax refund is about $2,900. That amount can vary depending on your income as well as tax deductions.

However, that still leaves the question of what to do with the money?

Pat Peterson, a resident from  Delmar  says, “Save a little, donate a little, spend a little… probably for a trip.”

While treating yourself might sound like a good idea, others focus on ways to financially support their loved ones and cut down on their immediate expenses.

David Taylor Jr., a resident from Salisbury says, “Mainly for my kids, family, and bills… I’ll worry about me later on.”

The folks at Comprehensive Financial Solutions recommend taking care of expenses first.

Stephanie Brown, the Director of Operations, Technology & Strategic Planning at Comprehensive Financial Solutions says, “If you have any outstanding debt or outstanding bills that need to be caught up or maintained…you definitely need to make that a priority.”

Brown tells us some of the most common debt comes from credit cards  and that should be addressed first.    

“Once you do tackle that debt then you’re able to start a fresh plan to save and put that money to good work,” says Brown.

If you do find yourself with a little extra money Brown recommends investing in your future.

“Think about funding your retirement plans. If you have a 401K, 403 , just to name a few. Consider adding more to those to save, so you can actually enjoy life versus feeling like you’re underwater,” says Brown.