What to do with Your Return

[pennypinch]

On average people can expect to get a tax return of $2,800 this year. Lots of people are getting much more than that. Now you have to decide what to do with it.

For most people this is the largest chunk of money they will get at one time all year. People tend to spend it on vacations, electronic gadgets and so on. With the economy still being shaky there are other things that you may want to do with your refund.

1. Emergency fund.

This is a great time to build up or rebuild your emergency fund. You just never know what the future holds so having an emergency fund is almost a must.

2. Repay debt.

You can use the money to pay off credit cards and so on and avoid paying a lot more in interest and fees.

3. Investments.

A mix of stocks and bonds or mutual funds is a great way to put your refund to good use.

I actually paid off my credit card and got all of my bills paid up to date. What a great feeling.

[Rae74]

I find that a good thing to do with extra money is to take and put it in a bank account just for this,extra monies.Then I would decide exactly what I wanted to do that year with the money,this way I would know about how much I needed before I could actually go.

I would make sure that I would invest it in something guaranteed to give me a good return in a few years.This way your money is increasing while you are not spending it.

Next I would get any extra education that I could to help me make more money at my job.

Finally I would save for a few years and try and open my own restraunt one day in the near futer.

[dimetime]

I think right now most people will be using their returns to take care of utility bills, debts, cars and so on or they will be putting the money aside in case of an emergency.

That is what I plan on doing. Right now I am like most and have to watch every penny carefully, so putting the money aside for any kind of emergency seemed like the best idea for me to do.

So until things start to straighten back out for this country I will be saving as much money as possible and this is one of the ways I will be doing just that.