Markets

Free Money: 5 Ways To Use Your Tax Cut

Updated on: January 18, 2011 / 11:09 AM EST / MoneyWatch

The recently passed tax cut amounted to "free money" to most taxpayers (unless you count that nasty old debt problem!). It would be a shame to squander that newly found money, which is why I discussed potential uses for the extra money with CBS3 this morning.

Here are 5 ways to use your "free money":

1. Pay Down Debt

2. Beef up emergency reserve fund

3. Increase retirement contribution

4. Increase 529 contribution

5. Have fun: vacation or splurge fund

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

Twitter

More from CBS News