If this is your first time visiting, check out the story behind this blog. Otherwise, please join the others by subscribing to my RSS feed or get updates via email so you don't miss any personal finance articles!

The deadline for filing your taxes just passed. This means that many of us should be expected our tax refund in the coming days. It is always a weird time of the year because you usually most of us get an inflow of quite a bit of money.

If you are one of them, first you should re-adjust your tax withheld since a large refund mean that you have essentially given Uncle Sam a free interest loan for the whole year.

For those that are getting your tax refund this year though, think carefully of where you will be using it before you blow it on another flat-screen TV. Here are a couple good ways you can use your tax refund money.

Pay down your credit card debt

Not that much fun, but your credit card?? interest rate is one of the highest ones out of your debt. This means that the sooner it is paid off, the better. Since the average family carries close to $10,000 in credit card debt, paying this off should be one of your priorities.

Never too late to save for the rainy day

There are always unexpected events that happen to us. In order to prepare for accidents that might occur (my supervisor was fired from his work 3 months ago and he called me the other day saying that he is still trying to find a job).

Therefore, it is imperative that people should have about 3 months of before tax salary in an emergency fund. This equates to about $15,000 for a household making $60,000 a year. Treat the fund as a monthly bill that you must pay. With most online savings account, you can set it up so it is deducted from your checking account automatically, so you won?? forget.

Other loans

Apart from your credit card loan, any type of loans should be considered too. Car loans, mortgage payments, anything goes. Just remember that the longer you take to pay these, the more you end up paying.

Invest in your IRA

The fact that the 2006 deadline for IRA payments has already passed shouldn?? stop you from contributing to the IRA payments the 2007 year. Just remember that the different IRAs have their particular tax benefit, which means that you will be able to keep more money for your retirement.

The other more subtle advantage of IRAs is that they aren?? as easily to take out as money in your savings account. This means that you probably won?? use it for your impulse purchases, saving you money at the end.

No matter what you do with your tax refund, just remember to be responsible! The smarter you are with money, the more comfortable you will live down the road.

How are you spending your tax refund money? Share with us!

Get updates with my RSS feed! Click here to subscribe!