Financially, this is the time of year that everyone longs for because they are awaiting their tax refund check from the Federal government. In some cases, these refunds are over $1,000.00 and that is no small chunk of change. The following are suggestions as to what you might do with this money.

Pay Off Debts. This is probably the least favorite thing to do with the money but it has the potential to help get you on your way to keeping more of your money every month. Especially when it comes to paying off high-interest credit card debt. The sooner you pay these off, the sooner you will be able to start saving money that otherwise would be going to maintain that credit card debt. You can accumulate hundreds of dollars in just a few months (depending on what you owe) which will help give you a return of a better kind – no or lower debt payments.

Pay for a Needed Item. Some choose to use this money to purchase a needed item. For some it is a car, others still, buy major appliances. The urge that you need to avoid here is using the money for something that is considered frivolous. Things like iPods, big screen TVs and other such items are among the items that should be deemed as unnecessary. The idea to keep in mind is to be ˜practical.’

Put it into an Account for Savings. Watch your tax refund money actually do something besides sit in your wallet for a few days – get a long-term savings account and allow it to accumulate interest. Your local bank offers Certificates of Deposit which can grow your refund with a healthy interest rate. Or, better yet, put the money into an IRA for retirement purposes.

While you are thinking about taxes, you might want to consider getting out of the tax refund business all together. You give your money to the Federal government throughout the year and allow them to use it interest-free. Better it is to keep that money for yourself and put it to work every time you get a paycheck. Think about the amount that you could accumulate with interest over the course of a year. In fact, if your employer offers an automatic payroll deduction/deposit program in which you can directly deposit your money into a savings account, you will automatically save money without even seeing it. Which is what you are doing now, except that you do not get to see it until it comes back to you in the form of a refund. Think about it and then make 2010 a different kind of tax year for you.