What should I do with my tax money?

Answer 1

If you have any credit card debt or other high interest debt, I would pay this down. Otherwise, you could start saving as well. You could contribute it to a high-interest savings account (e.g. HSBC Online has one that pays about 5%) or you can look into buying into a mutual fund as well. One of the benefits of putting it in a savings account is that the money remains liquid (i.e. you can access it quickly). This way, if you need to purchase something in the future, you can use this money rather than using a credit card (and pay the high interest rate to borrow the money). Most mutual funds will produce better long-term returns than a savings account, however, you will need to be in it for the long-term. Stock markets have ups and downs and you have to be able to stick these out in order to see the benefits from making the investment. Historically, the stock market has a greater than 5% return so if you don't think you'll need the money in the near future, you'll get more back on your money.

Answer 2

Bank it, if you don't have 6 months worth of pay in the bank already.

I can't begin to describe the joy of being able to say, "Take this job and SHOVE IT!" without having to worry about making the mortgage payment! That, my friend, is TRUE freedom! I'm there, and I'm LOVING it!

Answer 3

Depends on how much you get back...since its slow time of the year for anyone...I would say go shopping get yourself something nice...or buy tickets to go on a vacay! If not save it..put in the bank..maybe invest it...

Answer 4

I.R.A. would be a wise choice . But hay, it's your money

Answer 5

give it to me! j/k what ever you wont!