This year’s tax rebates are slowly trickling in. If you selected to have the money direct deposited, it may already be in your account, otherwise you should be getting a check from the IRS in the next few weeks. This of course brings up the question… how do you spend that money?

I’ve put together a little list of priorities for you that may help guide you if you’re undecided on how to spend this extra cash.

Bills Due and/or Food
If you’ve been really strapped for cash and have outstanding bills, or need to put some food on the table, by all means use your tax money to do so.

1. Necessary Repairs 
   Does your Car need new brakes or your fridge is about to die? Use the extra cash to make those repairs, so you don’t have to end up charging your credit card later.
2. Pay Off Consumer Debt
   If you don’t need the money for the cases stated above, and you have some credit cards or other consumer debt (other than house or car payments), put the money toward your outstanding balance. It will get you a huge step closer towards a debt free future and will save you quite a bit in interest that you don’t have to pay down the road.
3. Put It into Emergency Savings
   We should all have some sort of emergency savings account. I try to have at least 3 months of living expenses in that account. It earns a little interest, but my main concern is to have the money readily available when we need it.
4. Investments
   Here you have to do a little math… what will be more beneficial to you? Paying  the amount toward the principal of your car or home loan, or can you earn more interest with a high yielding savings  or money market account or the likes. You may also consider putting the money into a roth ira or a college fund for your kids. Seek the advice of a financial planner to help you crunch the numbers if you’re at this stage.

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