As the 2025 tax filing season progresses, millions of taxpayers across the United States have received their refunds, averaging around $2,065 per refund. With over 8 million refunds issued by early February, financial experts advise recipients to use this money wisely. Key recommendations include addressing high-interest debt, establishing or bolstering an emergency fund, and contributing to retirement savings. While some suggest allocating a small portion for personal enjoyment, the primary focus remains on strengthening one's financial foundation.
Financial advisors emphasize the importance of tackling high-interest debt as a priority when receiving tax refunds. Jonathan Ford Jr., president of JFJ Advisory Services, highlights that paying off outstanding credit card balances and loans with double-digit interest rates can significantly reduce financial burdens. Karla Dennis, CEO of KDA, Inc., agrees, noting that reducing credit card debt is crucial since it frees up funds that could otherwise be spent more productively. The Federal Reserve Bank of New York reports that U.S. households collectively owed $1.21 trillion in credit card debt at the end of December, underscoring the widespread need for debt reduction strategies.
Beyond debt repayment, experts also stress the importance of building an emergency fund. Ford recommends setting aside three to six months' worth of expenses as a safety net, emphasizing the peace of mind it provides during unexpected financial challenges. According to a recent survey, 42% of Americans lack such a fund, making this a critical area for improvement. Dennis adds that even a modest emergency fund of $1,000 can provide significant security, allowing individuals to cover unforeseen expenses without disrupting their financial plans.
Contributing to retirement savings is another wise use of tax refunds. Both Ford and Dennis advocate for investing in IRAs or Roth IRAs, even if contributions are initially small. Ford explains that Roth IRAs offer additional tax advantages, as taxes are paid only on the initial contributions, not on the growth. This makes them an attractive option for long-term financial planning. Dennis emphasizes that starting early, even with modest amounts, can build a substantial nest egg over time, ensuring a more secure financial future.
While financial stability should be the primary goal, experts acknowledge the value of rewarding oneself with a portion of the refund. Ford suggests treating oneself to something enjoyable, provided it does not exceed 25% of the refund. Dennis advises caution, reminding taxpayers that refunds represent their own money held by the government throughout the year. Establishing a budget that includes allocations for both necessities and personal indulgences can help maintain financial discipline while still allowing for occasional treats.
The IRS typically processes electronic tax returns within 21 days, while paper returns may take four weeks or longer. Taxpayers can track their refund status through the IRS website. By using tax refunds strategically, individuals can make meaningful strides toward achieving their financial goals and securing a more stable future.
In the bustling heart of New York City, a new wave of progressive politics is emerging. Zohran Mamdani, a 33-year-old socialist and State Assembly member, has captured the attention of many with his candid and grassroots approach to governance. Known for his unwavering commitment to social justice, Mamdani's journey from high school journalist to potential mayor is marked by a series of bold actions and heartfelt advocacy. This article explores Mamdani’s background, his campaign for mayor, and the transformative policies he promises to implement.
A Journey of Advocacy and Activism
From an early age, Mamdani displayed a passion for storytelling and activism. Born in Uganda and raised in New York, he found his calling during college when he co-founded Bowdoin’s first Students for Justice in Palestine chapter. His activism extended beyond campus as he became involved in various protests and community organizing efforts. In 2020, Mamdani won a seat in the State Assembly, where he continued to champion causes that resonated with working-class communities. One of his most notable actions was organizing a hunger strike to pressure the Biden administration to cease arming conflicts, demonstrating his belief that politicians must be accountable to their constituents.
Mamdani's political ideology is rooted in socialism, and he proudly identifies as a member of the Democratic Socialists of America (DSA). He argues that consistency in advocating for marginalized communities, including Palestinians, sets him apart from other politicians. His platform includes ambitious goals such as free childcare, free buses, and rent freezes—policies that directly address the daily struggles of New Yorkers. Mamdani emphasizes that these policies are not radical but necessary steps toward creating a more equitable city.
The Path Forward for New York City
Mamdani’s candidacy offers a fresh perspective on what it means to be a progressive leader in New York. He believes that true representation goes beyond identity and must manifest in tangible policy changes. As the first Muslim and South Asian candidate running for mayor, Mamdani acknowledges the historical significance of his campaign but focuses on how his policies can uplift all New Yorkers, especially those who have felt marginalized by previous administrations.
One of the key messages Mamdani delivers to Muslim New Yorkers is the importance of reclaiming their place in the city’s civic and cultural fabric. He highlights the need to reverse harmful policies like mass surveillance that have pushed Muslims to the margins. By addressing these issues head-on, Mamdani aims to restore trust and empower communities that have been historically underserved.
Mamdani also addresses the broader economic challenges faced by New Yorkers. He connects local issues like the rising cost of living to global conflicts, illustrating how foreign policy decisions impact everyday lives. His vision for New York includes not only immediate relief measures but also long-term solutions that prioritize the well-being of working-class residents.
A Call to Action
As a journalist and reader, Mamdani’s campaign serves as a powerful reminder of the importance of holding elected officials accountable. His ability to bridge local and international issues demonstrates a holistic approach to governance that prioritizes people over profits. Mamdani’s success in raising funds through small donations further underscores the support he has garnered from ordinary citizens who see themselves reflected in his platform.
In a city often dominated by corporate interests, Mamdani represents a breath of fresh air. His campaign is a call to action for all New Yorkers to imagine a future where affordability, equity, and dignity are not just aspirations but realities. Whether or not Mamdani becomes the next mayor, his influence on the political landscape of New York City is undeniable. His campaign challenges the status quo and invites everyone to rethink what is possible when we demand more from our leaders.
The concept of a shared currency among BRICS nations (Brazil, Russia, India, China, South Africa) has gained attention as these countries seek alternatives to the US dollar for international trade. While the idea is compelling, it faces significant challenges. This article explores the potential benefits and obstacles in establishing a common currency or alternative financial mechanisms within the BRICS framework.
Understanding the Motivation Behind a BRICS Currency
The desire to reduce dependency on the US dollar stems from geopolitical tensions and economic sanctions. Brazil's President Lula da Silva has expressed enthusiasm for a new trade settlement currency, but other BRICS members remain cautious. The diverse economic and political landscapes of these nations complicate efforts toward a unified currency. Establishing a shared currency requires extensive coordination and alignment of objectives, which may not align with each country's individual interests.
The history of currency unions provides valuable lessons. The euro took decades to materialize, built on a foundation of shared political institutions and economic integration. In contrast, the BRICS nations lack this level of cohesion. A gradual approach, such as implementing a fixed but adjustable exchange rate system, might be more feasible. This would allow countries to maintain their domestic currencies while creating a framework for smoother cross-border transactions. However, managing exchange rates and adjusting for inflation differentials pose significant challenges. Who would oversee these adjustments, and how would they handle the political and economic repercussions?
Addressing Practical Concerns and Future Prospects
Expanding the BRICS group to include additional nations like the UAE, Iran, and Egypt adds complexity. These countries bring unique economic conditions and dependencies, potentially diluting the effectiveness of any shared currency initiative. For instance, Ethiopia and Egypt rely heavily on IMF financing programs, raising questions about the BRICS group's ability to offer credible alternatives. Moreover, introducing a gold-backed currency, while appealing to major gold producers, could lead to destabilizing speculative movements and require stringent fiscal discipline.
Local-to-local currency settlements are gaining traction but face limitations due to imbalanced trade flows. Solutions like using the UAE dirham have emerged, but these are temporary fixes. China's renminbi has made strides in international usage, positioning it as a potential de facto BRICS currency. Additionally, central bank digital currencies (CBDCs) offer long-term solutions by enabling own-currency settlements and reducing transaction costs. However, CBDC implementation remains a work in progress. Despite skepticism from figures like former US President Trump, the shift away from the dollar is driven by real concerns about its weaponization. While immediate changes may be slow, the renminbi and gold are likely to play larger roles in future trade dynamics.