The idea of getting a huge check from the government is always exciting (even it if is your money to begin with). It is fun to have a windfall, but are you using that money to benefit you the most?
1. Pay it back. If you only tithe or donate off of you net income then you should give 10% of your refund to other causes (the church, Red Cross, or other charitable organizations). Giving to others with a joyful heart has a way of coming back to you in big ways.
2. Pay it off. Use the refund to pay off credit cards or other revolving credit. If you ever stop to figure what the interest is costing you then you will never borrow another dime in your life.
3. Pay yourself. Start an emergency savings and donâ€™t use it unless it truly is an emergency!
4. Pay to play. Do allow yourself some frivolous spending, but be wise with that spending. Get something the whole family can enjoy and that you probably wouldnâ€™t get otherwise (like a new couch or membership to the water park).
5. Pay it forward. Take a portion of the money and invest it into your retirement plan or for future use.
6. Pay to work. Bring your dream of having your own business to life by using the funds to begin your own business.
Getting a refund is always great. Depending on the size of that refund, it can also be life changing. Take some time to plan for the money before you have the check in hand. That way you can use the refund to benefit the family and your life.