What To Do With A Tax Refund?

It's never really much of a question of where my tax refund (usually around $600) is going each year. I regard tax refunds as a small windfall of cash and like every small windfall of cash I receive, it goes directly in to my investment account. This year it went partially to my money market account and the rest went to purchasing more shares in Universal Insurance (UVE), a small but growing insurance company in Florida. (They recently announced plans for expanding to 5 additional states.) I was pretty happy knowing that this small refund of my tax dollars went towards increasing my future income. What better use could be made of the money?

I have to say that I was shocked by what I've heard from friends and aquaintances about the way they've used their refunds. I realize it's their money and they have every right to spend it as they see fit. However, these are the same people who moan and groan about not having the money to pay their rent, or their electric or telephone bills each month. Yet they're going out and buying a lot of high ticket items that they don't really need and for the most part, wil just end up costing them even more money. I recently read an article about what you should do with your tax refund. One thing that I really appreciated was the account of one woman who said that she uses the money to make her life easier. Instead of spending it, she pays her rent, utilities, phone bill and internet for the entire year. That way she knows that if she loses her job she doesn't have to worry about her kids having a roof over their heads or heat in their home while she's on the internet looking for a new job. If your not going to put the money to work building your passive income, then this woman has the right idea.
Under the economic stimulus program, many of us will be receiving an extra tax rebate later this year. So it's not too late to come up with a plan to use this tax rebate wisely.