If you are one of the millions that receive a sizable tax refund every year, why not use the extra money to help out your personal balance sheet.  Here are some ideas for your refund that will be more beneficial than just spending it on whatever…

  1. Use the cash to pay down your debt.  Reduce any high-interest credit card debt you may have, or pay down the principal on your mortgage.
  2. Contribute to an IRA or a 529 plan for your children.
  3. Want to have a vacation, set aside some of your refund for just that.  Setting up a separate account helps for just that.  You could even do this for your holiday shopping!
  4. Have some smaller home improvements you want to make, use some of this money to do just that.
  5. Have a stock you want to invest a little in, open up a brokerage account and do just that!
  6. Do a check on your emergency fund to make sure there is enough in there in case you get laid off or hurt.
  7. Maybe it’s time for some additional life insurance?

These and may more tips are available at kiplinger.com