So, you filed your taxes and are expected to receive a refund. Here are the top 3 things you should consider when those dollars hit your bank account:
1. Replenish Your Emergency Fund
The pandemic has impacted us all in one way or another. If you noticed you’ve been dipping into your savings account a bit too much, it’s time to replenish your Emergency Fund. We want to be in the mindset of borrowing from yourself (i.e. an emergency fund) versus borrowing from financial intuitions (i.e. a credit card).
2. Pay Down Consumer Debt
Pay down or pay off any consumer debt like credit cards. Check the card that has the highest interest rate and tackle that one first. Just think, the average CC interest rate is 18%. Holding on to $1,000 debt can quickly turn into $1,180 just from interest.
Invest, invest, invest. You’ve replenished some funds to your emergency account, paid down your consumer debt, now it’s time to put your money to work for you. Stash some funds in a brokerage account and invest in the market.
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Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.