Got a tax refund?

April 3, 2023

Here are 4 smart ways to use the tax refunds

It's that time of year again - tax refunds have landed in the accounts of many of us in Sweden. Maybe it feels like an unexpected bonus, but how can you use this extra money in the best way? Here are seven smart tips for people aged 20 to 35 who want to do something sensible with their tax money.

  1. Create an emergency fund An emergency fund can be your savior if you face unexpected expenses, such as medical costs, car repairs, or unemployment. Aim to have 3-6 months of living expenses in your emergency fund and let your tax refund help you reach that goal faster.
  2. Pay off debts Becoming debt-free is an important milestone for your financial health. If you have high-consumption debts, such as credit card debts or personal loans, it may be smart to use your tax refund to pay them off faster and save on interest costs
  3. Save for a home Buying a home in Sweden can be a big challenge, especially in the cities where prices are high. Use your tax money to start or strengthen your home savings so that you are ready when your dream apartment or house appears.
  4. Travel with a clear conscience After the pandemic, many people are longing to travel again. Use your tax money to book a sustainable and responsible vacation, for example by choosing train travel over flights, supporting local businesses, and visiting less touristy places.

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