1. If you consistently get back a large refund each year, speak with your payroll coordinator or accountant about adjusting your tax withholding on your paychecks. Even a small amount of money added back into each paycheck can make a substantial difference in your income, especially if you commission the additional money to go into an interest-bearing account each payday. Since you where already surviving without the money, you will not miss when you invest it elsewhere.
2. Do not spend any of your refund impulsively. Consider your overall situation carefully and decide where the money would be used for the best interest of the whole family.
3. Pay off credit cards. It will help to reduce your debt and will also help you avoid acquiring new debt with interest payments and other monthly fees. Choose to pay off the smallest debt first and you can free up more of your monthly income. You could also choose to pay down the card that has the highest interest rate to get ahead of the ga
4. Establish or contribute to an emergency fund. Most people find that 3-6 months worth of income is the goal to achieve a good amount of money for an adequate emergency fund
5. Invest in long-term, high rate investments, including mutual funds, stocks, and even real estate. If you are not knowledgeable about investments, schedule an appointment with a professional who could steer you in the right direction.
6. Use the money for things you normally can not afford that will improve your assets, including fixing your car, doing home improvements or renovations, or even furthering your education.
7. Spend the money on luxuries you couldn’t otherwise afford. Consider your options. When was the last time you had a family vacation, bought new furniture, or just had some extra money to spend on whatever you wanted? The usual, everyday stresses of life can get to you all year long. Having a little fun can be a perfectly reasonable option as long as you stay within your means.

However you decide to spend the money is ultimately your decision. Take the time to consider each one of your options and use it to your best advantage.

7 Ideas for Your Income Tax Fund was created by and is property of American Consumer News.

The idea began when several entrepreneurs started seeking out savings plans that operated similarly to the 529 College Savings Plan. In theory, the small amount of money taken from each paycheck to save for the kids college education, eventually added up to quite a nice sum of cash. Using that same theory, Smartypig.com was created as a way to save money for vacations, special occasions, or even a nice big screen television.

Once registered on Smartypig, users can set up an account and establish goals for which they are saving. The account is free to set up and use. You provide information about the item or event you are saving for, how much it costs, how much you can afford to spend, and your target date to have all of the money. Smartypig will recommend how much money you should deposit and you conveniently set up an automatic deduction from your bank account. There is a minimum opening deposit of $25 required and a minimum savings goal of $250.  In addition to the money you deposit, Smartypig also enables you to allow your friends and family to help you meet your money goal. Each money transfer will cost a small fee. You can invite them or visitors can search for your account by entering your email address and easily contribute to your account.

The money collected in the Smartypig account will continue to add up and collect interest until your savings goal has met at which time you can opt to retrieve your money via a Smartypig MasterCard or by selecting a gift card from one of many participating retailers. The retailers may also offer bonus incentives towards the item for which you are saving.

Smartypig has a lot of the same terms as a bank account and is still carefully monitored to protect against national security concerns and other illegal money practices. When registering, you will need to be a US Citizen and over the age of 18 (unless you open an account with a parent). You will be asked to provide several forms of identification including your drivers license number, social security number, current and previous address information, email address, date of birth, and phone number.

Smartypig appears to be a one-of-a-kind savings plan for consumers who are looking to avoid credit card debt and instead, use cash savings to make purchases, afford vacations, or any item they are looking to get. It may be a new kind of incentive for people to start saving money towards fun things instead of just for paying bills.

For more information, visit http://www.smartypig.com/.

WEBSITE REVIEW: SMARTYPIG.COM was created by and is property of American Consumer News.