| Money is a matter of utmost importance this year, as | | | | 3. Prepay major bills that are coming up. If you have |
| the entire Globe goes through an economic downturn. | | | | anything from annual insurance premiums to your |
| When it comes to the time you will be filing your taxes, | | | | orthodontist bills coming up, paying it off with this extra |
| if you are expecting a refund, it could be difficult for | | | | money will take one big worry off your shoulders. |
| you to understand how to deal with the sudden flow | | | | 4. Invest in servicing your car or doing something for |
| of extra cash! All I can say is that you better consider | | | | yourself. For most people their car is the only mode of |
| your options and be wise in your spending habits this | | | | transport, so having it serviced every once in a while is |
| year. First of all, divide the refund money you get into 3 | | | | important. Also, investing in something useful such a |
| equal amounts - one each for past, present and the | | | | learning a new language or attending a professional |
| future. Use one part of the money for taking care of | | | | conference is never a waste of money. |
| past commitments such as repaying your debts. And | | | | 5. Prepay a future vacation or donate to charity. Pay |
| one each goes for your present and future needs. | | | | up for that vacation you've wanted for ages right now, |
| Here are 7 smart ways ton spend your income tax | | | | when you have the money. |
| refund during a recession: | | | | 6. Donate to a charity foundation and be sure to feel |
| 1. Start by paying off old debts, pending credit card | | | | better about helping someone who really needs it. |
| payments and school or car loans that you might have, | | | | 7. Save! According to experts, saving up at least 6 |
| ranking them in order of urgency. In this credit crunch, | | | | months' salary is a good idea for everyone in case of |
| the last thing you want to do is to skip your credit card | | | | an emergency or job loss. Any type of savings from |
| payments, increasing and making repayment more | | | | fixed deposits to your children's college fund is good, |
| difficult for you each time! So paying your credit | | | | so long as you add to it whenever possible. In a slow |
| payments off in full or at least if you manage to handle | | | | economy such as the one we're living in right now, |
| most of it, it reduces your monthly payments and puts | | | | nothing can be more important than saving as much |
| some money in your wallet every month. | | | | as possible because you never know when things |
| 2. Make an extra mortgage payment. This is a very | | | | might get worse! |
| smart move, because making one extra payment for | | | | An economic crisis calls out for you to do everything |
| mortgage every year can reduce the life of your loan | | | | you can to spend less and save more. Put your |
| up to 6months. It also saves you a lot of money in the | | | | income tax refund to good use, as any extra income |
| long run. | | | | in such a time is welcome. |