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They see that refund hit their account and immediately start dreaming about new TVs or fancy vacations.
So, whats the best way to use that refund?
1 way to put your tax refund to work: Split that refund into a 50/25/25 formula.
He explained the first 50% should go straight toward paying down yourhighest-interestdebt.
Thats a lot of money right there.
This strategy doesnt just lighten your debt load; it saves you money in the long run.
But I cant tell you how many times Ive seen people thank me later.
I personally put this portion in my Roth IRA every year.
The compound interest is just too powerful to ignore, he said.
Being Responsible Is Key
Look, I get it, Lokenauth said.
This isnt the sexy answer most people want.
Theyd rather hear me say buy that new iPhone or book that beach vacation.
But after working with thousands of clients, Ive seen this 50/25/25 strategy createreal, lasting financial stability.
He said its the difference between temporary happiness and long-term wealth building.
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