New computer? New recliner? Nice vacation?
Those are all great ideas. But before you spend the money, try to think through all the options - even the ones that aren't especially exciting or glamorous.
Consider three general rules:
- DO plan ahead before spending your refund. Without a plan, you may use the money on the first important thing that comes to mind, and then later realize something else was more important. Planning ahead and involving the family increases the chances you will identify all the possibilities, and think about which are most important.
- DO devote a portion of your tax refund to build long-term financial security.
- DON'T throw away part of your refund on loan fees. Did you know that those companies that offer "quick refunds" are just giving you a loan? It's a high-cost, high-risk loan (pdf).
Learn more about four major uses for your tax refund.
Build a year-long habit!
It feels great to make good use of your tax refund. You can experience that same sense of accomplishment all year 'round!
Tax refund season is not your only opportunity to make financial progress toward your goals. Every week you have opportunities to improve your financial well-being.
If you don't think you can come up with any extra money each month, look again. You may be able to plug a few spending leaks and "find" some money!
Once you've found some extra funds, you can use that money to:
kpedley
1/14/2008