You’ve filed your taxes and you’re getting a refund. Whether it is hundreds or thousands of dollars, you may want to use that money to improve your personal financial situation. Below are some tips to help you do just that.

• Set aside no more than 10% of your refund for fun spending. If your refund is more than $1000, limit your Fun Spending to less than $100.
• Start or add to your Emergency Fund. With a goal of 3 – 6 months of expenses, you should aim to add up to 50% of your refund to help you reach this goal.
• Pay off or pay down your high-interest debt. Credit card debt is usually the best option for this.

If you have saved 6 months’ worth of expenses in your Emergency Fund and have no credit card debt, the following tips are suggested.

• Add to or open a Retirement Account. Even small amounts of money invested for a longer time can become substantial.
• Pad your Christmas (or other) Sinking Fund. The earlier in the year you have reached this goal, it makes it easier to take advantage of sales prior to the holiday shopping season.

That’s it! By using your tax refund to improve your financial situation you can lower your stress and feel good knowing that you are doing what you can to make the most of it.