How to Spend Your Tax Refund

Though your tax refund may seem like a good reason to splurge, there are better ways to use this incoming cash. [Profit Trends]( SPONSORED [Big Tech's "Secret Savior" in 2021?]( [Space Satellite]( The world's biggest tech companies are now pouring BILLIONS into the exciting space and satellite sectors... But one TINY company holds three massive advantages over the Big Boys... We think they'll soon be partnering up... And that puts it in a GREAT position for the biggest megatrend of the decade. [Details here.]( [TREND INVESTING]( What Should I Do With My Tax Refund? Rebecca Barshop | Senior Managing Editor | The Oxford Club [Rebecca Barshop] Spring is in the air... As is pollen, grass and the end of tax season. Now, I could do without the histamine-inducing gifts from Mother Nature. But at least there's a refund to look forward to. Tax refunds are like free money... and that can feel like justification for a splurge. But there are much better uses for your newfound cash. And that's what we'll go over today. Also Known as Capitalist Slavery... Hopefully, you're one of the 62% of consumers who can expect a tax refund in 2021. The average refund for the 2020 tax year was $2,707 per return. Now, that's probably not going to pay off your mortgage... but it's not negligible either. $2,707 is more than enough to make a difference. Especially when it comes to debt. An American family holds an average of $6,270 in credit card debt. And the worst part is that the lower your net worth, the more you owe as a percentage of your total assets. [Average Credit Card Debt in America] Once you're in the clutches of a credit agency, it's extremely difficult to get out. That's no surprise considering today's average credit card interest rate (also called the annualized percentage rate) is 16.15%. So with a $6,270 debt and realistic payments of $150 a month, it would take 62 months (more than five years) to pay off that debt in full... And you'd have to cough up an extra $3,007 in interest. [Paying Off Your Debt] But let's say this average refund was applied to the average debt... That would bring your balance owed down to $3,563. At the same interest rate and monthly payments, you'd be able to pay off your debt in less than half the time (just 29 months). And you'd keep more than $2,000 in interest. [Paying Off Your Debt... Minus Tax Refund ] Even if you pay off your credit card every month, there are still car payments, student loans and mortgages - potentially totaling hundreds of thousands of dollars. And if you've ever lost your lunch over a full amortization schedule, you know that interest is the silent killer. At the end of my 30-year mortgage, I would easily be able to afford a second home with the amount that I'll have paid in interest. So it's easy to see why the No. 1 purpose for your tax refund should be to pay down debt. SPONSORED [Expert who called exact bottom of 2020 crash predicts "massive wealth creation" event in 2021...]( [Time to load up again]( [See it now!]( Everything Else... Now, let's say you're the perfect human and have zero debt to pay off. You own your house and car outright. You pay your bills. You haven't so much as borrowed $20 from a friend... The next step would be to secure your emergency fund. Many experts and advisors suggest keeping three to six months' worth of expenses in a rainy-day fund in the event of a big life change, layoff or global pandemic. (But that couldn't happen, right?) This money is not to be touched for bills, everyday expenses or vacations. And it shouldn't be invested in the market either. This is liquid money that you could withdraw at the drop of a hat. Just stick it in a high-yield savings account and let compounding interest work in your favor for once. Beyond sticking it to interest rates and securing your "flee the country" go bag, the next best thing to do with your refund is, of course, to invest it. That's where The Oxford Club - and our world-class financial gurus - comes into play. Chief Trends Strategist Matthew Carr is one such expert, especially when it comes to the nascent cannabis industry. Matthew predicted the legalization of cannabis in Canada a full year in advance. So he was able to get in on Canadian cannabis companies before their historic rise. Now he's doing the same thing in the U.S. Legalization is imminent... and Matthew will tell you where to put your money today. [Get all the details here.]( Good investing, Rebecca P.S. 2020 tax refunds have been delayed due to the pandemic. To check the status of your return, [go here](. 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