We all know that tax time is just around the corner, so now is a good time to make plans for the money that you will receive.  Although you may not know exactly what the amount of your refund will be, you can probably get a good idea from the amount of your refund from last year.  So, what should you do with the money once you receive it?

One of the most important things, especially with today’s economy, is to set some money aside in a separate savings account in case there is an emergency.  An emergency could be the loss of a job, auto problems, sickness, along with a number of other things.

Once you have some money set aside in the emergancy account, your next focus should be on your debt.  If you have several small debts, or one large one, figure out how much you can take from that refund to pay towards the debt.  If the amounts are small you may want to try to pay some of them off entirely.

The most important thing to remember is, do not throw it away.  Make sure you use your money responsibility, and be sure to save some for a rainy day.

photo source:  leonardini