| 1. Pay down your credit card debt | | | | rise more each year and it is never too early to |
| Credit card lenders typically huge interest rates, | | | | start saving. |
| so this year why not use your refund to pay | | | | 6. Service your car |
| down all, or at least part of, your credit card | | | | For many people their vehicle is their only way to |
| debt? If you have multiple credit cards you should | | | | get back and forth from their job. If it has been a |
| try to pay off those with the highest APR (annual | | | | while since you have had your car serviced it is |
| percentage rate) first. | | | | probably a good idea to take it in. |
| 2. Make an extra mortgage payment | | | | 7. Invest in yourself |
| If you use your tax refund to pay an extra | | | | By attending a professional conference, learning a |
| mortgage payment every year you can | | | | new language, or even taking a class at a |
| drastically reduce the total amount you pay on | | | | community college, you can put your refund to |
| your loan. By making one extra payment each | | | | good use by investing in yourself. |
| year you can reduce the life of your loan by up | | | | 8. Prepay a future vacation |
| to six years. | | | | There is nothing more relaxing than taking a |
| 3. Prepay major bills | | | | well-deserved vacation. If you worked hard last |
| If you have any big bills coming up then you | | | | year then odds are you will have a sizable refund |
| might want to consider prepaying them with your | | | | to show for it. Why not take a vacation with |
| refund. These bills range from annual insurance | | | | friends or family with part of that refund? |
| premiums to orthodontist bills, but can cause | | | | 9. Donate it to charity |
| problems for anyone living on a monthly budget. | | | | Making a charitable contribution is always a smart |
| 4. Upgrade appliances | | | | way to spend your tax refund. By helping others |
| By upgrading to energy efficient applicants such | | | | in need you can do a great thing and lower your |
| as air conditioners or refrigerators, you can | | | | taxable income. |
| actually save money on your energy costs. | | | | 10. Save it for a rainy day |
| Additionally, these improvements can also increase | | | | This one technically is not a way to spend your |
| the value of your house. | | | | refund, but it is a good rule of thumb is to have |
| 5. Open a college fund | | | | at least 3 to 6 months worth of living expenses |
| If you have kids, or if you are planning to, it may | | | | saved in case of an emergency. You never know |
| be a good idea to put your refund away to their | | | | what will happen tomorrow, so you should always |
| future college expenses. Tuition and book prices | | | | be prepared. |