For some people March and April can be a painful time financially.  If you have to pay additional money in taxes it isn’t much fun.  On the other hand, for those of you who get a refund due to over payment or simply not making enough income you will end up getting a refund.

Today I want to give you a list of a few things you might consider doing with your refund instead of wasting it on meaningless spending.

1. Start or finish your emergency fund.  Depending on the size of your refund you might be able to add to an emergency fund or at least get one started.
2. Age your money a little. We talked about how I love YNAB a tax refund would be a great way to get a couple weeks or even a month ahead on expenses.
3. Invest it in an IRA. If you don’t have a significant tax liability I would recommend a Roth IRA. The money grows tax free and you can always withdraw what you contribute tax free.
4. Pay off some debt. If you still have debt hanging around, a tax refund is a great way to clear some up some of that debt and save some interest.
5. Learn something new. Have you wanted to learn more about a topic like personal finance, cooking, minimalism, or any host of other topics? Use your refund to pick up a few resources or take a class on that topic and get learning.

If you get a refund make sure that you have a plan and execute the plan.  If you let it sit there and don’t have a plan, it will end up slipping away.

We got a refund and chose to do a little of everything. We bumped up our emergency fund, put some into aging our money and we are going to have a nice dining room table built by a friend. (Ours is a little small for our family size).