So, you finally got something back from the government and you want to run right out and spend it. Hold on just a second; here’s what you should do with that refund:
1) Pay down credit card debt.
2) Build your nest egg (you should aim to have six months’ worth of bills in your savings).
3) Take 20% and treat yourself to something nice.
It’s certainly tempting to plan a trip or splurge on that new designer bag, but this money isn’t a bonus. It’s just excess take-home pay that you loaned to the government, so be smart.