How to Make The Most of Your Rebate or Tax Refund Check

We are all looking forward to those rebate checks from Uncle Sam, so here's some beneficial advice on what you can do to get the most out of your money in the long run, whether it's your rebate check or income tax refund.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Your rebate or income tax refund check

1. Pay down your credit card debt.
   More than half of Americans have credit card debt and way too much of it. The Federal Reserve reported revolving debt in the US to be an estimated $943.5 billion, up 1.7% from the previous year. While you may not be able to completely pay off the full balance on your cards, you can at least tackle some of it.
2. Tackle your mortgage payments.
   With the current state of the housing market in this country, count yourself lucky if you are not caught in the housing slump in some way or fashion. If you are being affected and not too far gone, apply your check to your mortgage. Your home is probably your biggest asset and a foreclosure can single-handedly wreck your credit.
3. Catch up on those car payments.
   In an effort to not lose their homes, and pay rising everyday expenses such as gas and utilities, many Americans are falling behind on their car payments. While you may be able to pay minimums on credit cards, banks still expect their monthly payments in full on your car note. While your check may not go too far on your mortgage payment, when applied to your car payment, you may be able to make a deeper dent which may even save you interest in the future.
4. Establish or boost your savings.
   If you don't already have a savings account, now is a good time to start one. With a myriad of banking choices both online and available to you in your community, I would highly suggest allocating at least some of your check to establishing a "rainy day fund" yielding a decent rate of interest.
5. Increase or establish retirement accounts or 529 plans.
   If you have no children, or are an empty-nester, use your check to boost your retirement account, or to start one if you don't already have one. IRA's and Roth's are a great place to start. If you have children and your own retirement account(s) then start a 529 account for your children's education. With the ever-rising cost of college tuition there's no time like the present to start saving.

Tips & Warnings

• Always seek the advice of a licensed professional when investing.