Tax Time Is Coming Up...What To Do With Your Tax Return.

With tax season right around the corner I thought I would posts some tips of what I've done with my tax return in the past.

I good way to reduce your interest costs is make an extra credit card or house payment. As we have discussed before paying extra will save you not only money in the long run, but months or even years in payments and finance charge. This can be huge.

Think about buying savings bonds. They earn descent interest and are safe way to save money. He can't cash them in for six months once you buy one. So it cuts down on the temptation to get the money. They have come in handy for me at times when I needed money. You can get bonds at most banks, credit unions or on line at savingsbonds.gov

Open a saving account. If you don't have one already now is the time to start. While your at have an automatic deduction go into the account every pay day.

Put your money in an IRA. If you qualify for a tax deductible IRA, you have until April 15th to contribute and claim the contribution for your current tax return. Or you can could put your tax refund in o an IRA for the following year. You will probably get a higher tax return because you can deduct it. Repeating the price every year will grow your IRA very fast.

If you don't qualify for a tax deductible IRA get a Roth. Even though you won't get the tax deduction The Roth IRA is a great tax free way to save money for your retirement.

If you must have some fun with it spend a little, but the Government has been earning interest on your money all year you might as well be earning some interest too.