Income Tax Refund?

If you are like most, you'll be getting a tax refund this year. Mine is coming Feb 13th via direct deposit.

The real question here is what are you planning on doing with your refund? I've got some advise / opinion to share with you on this.

1. The most important thing you can do is write down on paper what you'll do once the refund hits your hands. If you don't write it down, you'll spend it 3 or 4 times over in your head. Heaven forbid you "spend it" before you even have it. 70-80% of people do this.
2. Put it back for an emergency. I know this is not the "fun" thing to do but, if you do not have a fully funded emergency fund, this is the smartest thing to do.
3. Pay down some debt. Knock out a bill or two. What a blessing to have less bills to pay.
4. Bless someone who's out of work. Take a portion of your refund dollars and give it to someone in need. Way cool!
5. If your consumer debt free, use your refund to "fund" your next family vacation. This one is our plan.

My final suggestion, especially if you have a large refund ($1,000 or more) fill out a new W-4 at work and pick MORE dependents than you have on your current W-4. By doing this, less will be taken our of each paycheck, giving you more money in your pocket now. Who wouldn't want more money now?