What to do with your tax return money.
WOMEN AND MONEY
So you are getting back money from the government again. This time it's $1,000 more than last year and due to the governments new tax rebate you could end up with between $300-$1200 more, based on your individual tax circumstances. I know you have heard it before but I will say it once again. Getting back a windfall of money every year means you are lending your hard earned money to the government interest free, and you don't even get a thank you note for it. If the shoe were on the other foot and you owed the IRS money, you can be sure that they will be adding up the interest you owed them from day one. For some of you getting back a refund may be the only way to save money. If you make changes to your W2 form and begin to receive additional money in your weekly paycheck, and then proceed to increase your spending pattern, this will defeat the whole purpose. However, if you are disciplined about saving and invest that money in a money market account you'll be the one to earn the interest not the government.
Women tend to carry more consumer credit card debt than men. Using your credit card can be a great convenience if you pay off your balance at the end of each month. By not paying in full you will quickly find out that the $50 pair of shoes and the $25 afternoon lunch may quickly add up to $150 if you continue to pay only the minimum balance.
If you have any credit card debt now, one of the first things you should do with your tax check is to pay it down. If you have multiple balances on your cards, utilize the debt snowball theory developed by David Ramsey.This would be a great start to this wonderful program. Remember the interest that is being charged on those credit cards is more than any type of interest that you can get in a savings account right now. Getting rid of your debt is the first steps toward financial freedom! The next step is taking control and changing your spending behavior. http://www.groupcurriculum.org/questions/debt_snowball_sample.pdf