7 On Your Side: 7 Tips on where to spend your tax refund

Nina Pineda gives seven tips for the best ways to use your tax refund. (WABC)
Seven On Your Side
April 10, 2014 4:27:27 PM PDT
It's tax season and three quarter of taxpayers are counting on those refund checks. But before you spend that refund, reflect, 7 on your side has 7 great places to park some or all of that money.

1) Refund Reward yourself

First off the bat, reward yourself with some of that refund money! A little indulgence goes a long way to a sound saving plan says http://www.thestreet.com/.

2) Refund your credit card

As a certified financial planner Lauren says her clients were more motivated to pay down debt after a small splurge with their refund. A good target, is tip number two. Refund your high-interest credit card--the average household owes about $7,000 on their plastic, now's the time to knock out a chunk.

3) Refund your loans

While we're talking about debt, put some of that new loot towards your loans. Use your refund for a student loan, car loan, or home mortgage. Remember one extra payment per year will knock 5 years and thousands in interest off a 30 year mortgage.

4) Refund your home

While you're investing in your home, consider putting your refund toward home maintenance. Roofwork, painting, or any repairs you've been putting off which could cost you in the long run.

5) Refund your vacation

Refund spending on number five is an all around favorite. Invest in some R and R. 6) Refund an emergency fund

Number 6 will reward you with peace of mind. Consider putting your tax return money in an emergency fund. Consider saving at least 6 months of living expenses.

7) Refund Charity

Give to someone else. Your helping other people and you're helping yourself. You not only feel good you get a deduction next year.