By Mallory Hayes
Staff Writer
Each year the Inter¬nal Revenue Service dis¬tributes tax refund checks to millions of Americans. In 2006, over $110 mil¬lion was given back to the American people. As for the 2009 tax season, who is to say you might not be one of those fortunate recipients, and what exactly do you plan to do with all that extra cash?
The first instinct of many may be to book it up to Turkey Creek and take a spending spree. Before you do this, however, ask yourself if you can afford to spend it? It is not advis¬able to frivolously dish out money for a new MP3 player if you are already up to your ears in credit card debt. The first course of action when unexpected money falls into your pocket should be to reduce or eliminate your debts (personal or to the credit card companies). Taking care of debts sooner rather than later will cut down on the money you will spend on interest in the long run.
Another worthwhile use for the money would be improving or maintaining the value of your assets. Use the money to take care of your car or house. Change the oil in your ve¬hicle to protect your engine from wear and tear—taking care of it now may keep you from having to replace it later. You can also increase the value of your home by spending a small amount on internal repairs and improvements. These few and relatively inexpensive actions will easily pay for themselves over time.
If all else fails, feel free to take your check straight to the mall and spend it on a nice pair of fuzzy socks. During Amer¬ica’s current economic struggle, spending money on life’s little extras will do nothing but help the situa¬tion by providing stimulus to many faltering companies. Regardless of what you do with your tax refund, make a careful and thought¬ful decision that is best for your situation. Do not be too hasty to spend every cent the day your check comes in the mail—you can always put it into a saving’s account.
