If you are fortunate enough to get a big fat tax return every year, what should you do with that money? It is common to feel like you have a lot of money all of a sudden and want to spend it. I highly recommend that you save this money unless you really need to use it for something. Most of the time, you were doing perfectly fine without the extra money from your tax refund. Just use this as an opportunity to save that money. Put it toward a savings goal whether it is some large expense you were saving up for, a retirement savings account, an emergency fund or general savings.

Personally, I put my tax return right into my savings account. It will go into my savings fund for a down-payment on a house. Every year, when I get my tax return direct deposited into my checking account, the first thing I do is transfer it right into my ING savings account. The general rule that I have set for myself has been that once money goes into that account, it cannot come out (unless for an emergency). Doing this will hopefully decrease the urge to spend the money on something you don’t need. Hopefully, you will e able to significantly boost your savings this year as a result of your tax refund!