Making Better Choices on Spending Your Tax Refund

Everybody seems to have some advice in about how to spend your tax refund. But the best ways to use that money will vary among individuals.

So instead of getting into specifics, and not to dwell on the usual advice of saving the money or paying bebt, it may be more useful to provide general categories of smart ways to spend your refund.

DO

SPEND ON SMART RESOURCES: Use refund money to buy tools that will save you money. For example, subscribe to consumerReports.org, $26: buy a warehouse membership, about $50: or subscribe to a resource that rates local services, such as plumber, auto repair shops and landscapers. See AngieList.com or Checkbook.org

IMPROVE YOURSELF:

Take a class, buy self-help books or use refund money for other personal improvements, specially ones that give you skills to get a better job.

SPEND IT IN YOUR FUTURE:

Building in emergency fund or contributing to a Roth IRA and college funds are good ideas, but so is stashing some cash for this summer's vacation without using your credit card.And you'll have to replace your vehicle eventually. A refund could be seed money for that.

SPEND ON EXPERIENCES:

Academic research finds that experiences with family or friends contribute more happiness than buying additional stuff.