7 Things to Do with Your Tax Refund

Sure, there are numerous books, sites, and articles that tell a person what to do with their refund. From Wal-Mart sending out flyers that show what you should buy to Suze telling us to put some in a high-yield something or other, the opinions abound. In that spirit, I'm adding another to the list in the hopes that perhaps this one could be a bit different. This one is coming from someone who is actually going to do the proposed things (if they haven't already been done). I would also like to think that the suggestions are coming from a relatively financially average person. It does little good to get suggestions from someone who may be too far removed from the middle class way of life and its worries or someone whose suggestions are idealized snippets with little practical value. So, what to do when the refund arrives:

Pay those Pesky Bills

Most of us have them and if you don't, well then, you're already one step ahead, but many of us have at least one pesky bill. I'm not talking about a medical bill or credit card. They don't really fit into the pesky bill category, what does, however is a utility bill. NEADA, or the National Energy Assistance Directors Association, released a report recently that shows roughly 15% of all households falling behind on their energy bill alone. The average that consumers are falling behind is a bit over three hundred dollars with the amount of homes in this situation expected to rise as the economy continues to slump. Paying one of these bills has a twofold effect. First, it at least temporarily eliminates the stress associated with making sure that the bill is payed before services are disconnected. Reconnect services can be costly and may even be impossible to come up with until another payday. Secondly, it provides a buffer in an economy that's continuing to go downhill. If a terrible month arrives, while not encouraged, that bill will then be able to wait a couple of weeks. Money should be able to help provide some peace of mind not matter how small and this is one of those instances.

Buy an Energy Efficient Appliance

Many of us still have a refrigerator that sounds like a 1977 Buick idling. Guess what? It's also devouring that expensive electricity. This is another one of those two for one deals. In addition to potentially saving hundreds of dollars a year, you also get a new fridge. Of course, it's not the only appliance that can be updated in order to save enough money to pay for itself. Window air conditioning units, water heaters, and ovens are also energy hogs. Have a television that is over a decade old? Consider getting a new one that has a better picture and is EnergyStar compliant.

Invest in Your Existing Vehicle

I have a car that should get close to a quarter of a million miles on it this year. That's the equivalent of driving all the way to the moon with enough mileage to spare to take a scenic drive while you are there. Here's the interesting thing though. It's my company car.

For two years I've been hounded to just turn my baby in and get a newer, nicer one. It's actually no money out of my pocket, but this has been a bit of an experiment for me. I'm not even changing the oil as frequently as I should but I do have it updated once a year. It goes to the shop and about five hundred dollars gets spent replacing plugs, wires, and fluids. Five hundred dollars is about the average monthly vehicle note. I know because I have one of those also and it finds itself in the shop far more than once a year. Oh, and my moon car? It gets 32 mpg and is a mid-sized sedan. Take a few hundred and treat your vehicle to something that could add a few extra years and the savings could literally be close to ten thousand dollars. No investment I can think of will give you a higher rate of return.

Buy Those Funky Light Bulbs

Here's one that everyone should do and I can think of few homes where the cost would go over a hundred dollars or so. Buy compact fluorescent bulbs to save energy and the need to replace blown bulbs every few months. The light is just as warm due to increased technology, they put off far less heat, and make one feel at least a tad more environmentally friendly. I convinced myself to do this (and no one is cheaper than me) and saw a ten percent decrease in my utility bill. That's fifty bucks a month so the bulbs paid for themselves in 60 days. It's a relatively low cost thing to do and doesn't completely obliterate most peoples refund.

Next Years Christmas

No, I haven't done this one yet, but that doesn't mean it's not a good idea. Who hasn't wished that refunds didn't arrive in November? Imagine how much stress and credit card debt would be eliminated if that were the case. Christmas is normally the time that any financial headway made during the year is completely demolished. Don't buy all of Christmas, but try to figure out what few things could be bought now. Even a couple of hundred bucks on this can be a huge relief during the holidays that will come much faster than one realizes. Come to think of it, maybe this would even work with birthdays.

Get Some New Kitchen Supplies

There's a reason here, so stay with me. While most of us don't have the money to eat out every night, we still spend vast amounts of cash on food, whether it be pizza delivery or that delicious frozen stuff that takes little energy to prepare (my personal favorite is the pot pie). Regardless of what we fix, much actually goes into how we fix it. A new set of nice pots and pans is difficult to splurge on unless perhaps someone has some income tax refund, but it can make a massive difference. You'll find yourself rethinking your menus and becoming less apt to purchase processed foods that cost a bit more and are far less healthy.

It's nice to spend a little time preparing food, but not near as nice if your measuring cup also doubles as the favorite coffee cup and the only pot spins around annoyingly due to years of warping. Get a new cookbook while you're at it and you'll find that if the grocery bill doesn't go down, at least the quality of your food will go up. It's not always about saving money, sometimes it can simply be about improving the quality of life.

Buy a Video Game System

This isn't a pitch for any particular system, although it seems that the Wii is perfect for adults and the casual gamer. Once again, saving money isn't everything, although this can actually do that also. Entertainment budgets, if they existed at all to begin with, are going to go down over the coming months. If there wasn't one, it doesn't mean that people don't have the right to have some fun and actually enjoy staying home in a different way. It could even be argued that much of the reasons that people buy items they don't need to begin with is entertainment.

My family bought a Wii two years ago and it gives us all a chance to actually interact with each other without having an in depth game that involves hours of zombie-like gameplay and learning the thirty controller buttons that only truly works well with teens and those who have two thumbs on each hand. In addition, it can actually seem like an indulgent purchase. Of course, everyone should indulge every now and then.