Scott: Thanks for joining us today, I’m Scott Taknowa with DCC at Financial Community and I’m here today with Thomas Abblett, whose a CPA from Boca Raton, Florida.
Thomas: Hello, hello.
Scott: How are you?
Thomas: Good. How are you doing, Scott?
Scott: Very well, thank you.
Scott: Today, we’re going to talk about, if you’re one of those fortunate people that get a refund from the IRS what should we do with the tax refund? What would you suggest?
Thomas: If I were to get a tax refund or what I would advise clients to get a tax refund is be very careful with it, don’t immediately go out and figure, “Oh, I’ve got money to spend.” Don’t go buy the big screen TV, don’t go buy the new stereo, don’t put a down payment on a car is the thing. Be smart with your money. Put some aside for a rainy day. Put some aside for a cushion in the bank is the thing.
You don’t want to go out and incur more debt, buy things that you don’t need is thing. That’s the worst thing you could do with your tax refund.
The best is to put some aside but looking at your own personal situation also. Some people are in a bit different situation is the thing. Look at your debts that you have, look at the savings that you have, make sure you have that cushion in the bank.
You want about three to four months of monthly bills set aside just in case something happens, something happens with your job, family member, medical bills come up, car bills come up. You want that cushion set aside. Just don’t go out and blow it, not a smart thing to do.
Scott: Excellent. Very good. Good advice.
Scott: That’s our time for today. Thank you for joining us. I’m Scott Taknowa with DCC of Financial Freedom Community and I was here today with Thomas Abblett, CPA for Boca Raton, Florida.