Stretch Your Dollar: What to do with tax refunds, bonuses

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(WTNH) — It’s the time of year to put a little money back in your pocket, if you’re lucky.

Tax refunds are coming in and in some cases paychecks are getting fatter in the New Year.

Some companies are even giving out bonuses as a result of the president’s Tax Cut and Jobs Act.

“Employees are getting anywhere from a $1,000 to $2,500 in bonuses,” said Paul Schatz.

It’s good news for you and even better if you spend it wisely.

Heritage Capital’s Paul Schatz says there’s one place it should go first.

“Pay down that credit card debt before going on the trip, before you put in your savings account, before you put in your 401K,” said Schatz.

After you pay down debt, Money Crashers says increase your emergency fund, your retirement contributions and anything you need, like that dental work you’ve been putting off or the new appliance at home.

While it is okay to splurge on some fun, after all, you have worked hard for it. You may find you have more money for that stuff later after you have taken care of some of life’s necessities.

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