Oh yes - if you filed your tax return early, you should already have a return in hand. While I don't have figures handy, most folks who know that they're receiving a return are the fastest filers in the U.S.A. Most of you probably filed an e-return and asked for direct deposit (all the trees thank you). So, now that you have that cash in the bank, what are you going to do with it?

Cora and I went web surfing to find out how other folks spend their cash, and we were confused, shocked, frightened, and highly amused at some of the ideas. While hyacinths for the soul (like a trip to Paris, a Disney movie, a spa weekend, or a huge box of chocolate covered cherries) are always nice, I hope that you budget for these items so that you can treat yourself once a month or so. Otherwise, too much cash in hand may make you giddy. In other words, if you don't treat yourself well in the first place, that return may make you do some silly things.

Please take a moment to remember that many items depreciate as soon as you walk out of the store door with them. Then, take a few more moments to read how you can benefit from that return below:

1. If you feel you need to drop that cash into something big, try your credit cards. Pay them off or knock down the balance of at least one card, and do it now while you still have those monthly fees and interest in mind. When I hesitate to pay off a credit card, I just remind myself that it's like putting money in the bank. Although I'm not earning interest, I've eliminated the interest that's killing my wallet. Additionally, I still have that money available if I really need it. Tip: Pay off the card with the highest interest.
   
   
2. If you own a home, make several payments to help knock down that interest. Or, purchase a fresh coat of paint, some termite control, or some other element that will increase the value of your home. Tip: If you want some advice on how to increase your home value, just type "remodel home value" into your search engine and view your options.
   
   
3. A standard rule of thumb is to have three- to six-months' worth of living expenses on hand in case of an emergency. This is a good time to manufacture a budget if you don't have one. Then take your monthly balance and multiply it by six. If your tax return falls short, then you have a goal to fulfill over the next few months. Don't save this money in your regular checking account, as you might be tempted to spend it on ballroom dancing. Instead, chose a vehicle that pays some interest and that is liquid, like a CD, a money-market fund, or a savings account with compound interest. The goal here is to have your cash handy when you need it, so the stock market is too risky for that purpose. Tip: If you put a large sum aside immediately, the balance won't be so hard to face.
   
   
4. On that note, you can decrease your insurance rates when you increase your deductible. The money you save on payments can be saved in that emergency fund above to allow for that deductible. Plus, you'll make some interest. Tip: Don't increase your deductible to an obscene amount until you know that you can save the money to compensate for this reduction.
   
   
5. Of course, the stock market is a great way to invest in your future. Another talk with my brother revealed that he had socked some tax return money away in the market about three years ago and he's more than happy with the results. Of course, he chooses his stocks wisely, with the intent of a long-term investor. Unlike other vehicles that return a small amount of interest, the stock market might please you as well. However, remember that the higher the return, the higher the risk. While you investigate stocks, go ahead and pay off that credit card or save up for that emergency fund. Tip: Find out what type of investor you are at BUYandHOLD's online tour.
   
   
6. While you're at the link above, consider an IRA investment with your tax return. This is a very wise choice, as you can invest on the same day you open your account. Additionally, if you chose a Traditional, Roth or Rollover IRA, the $25 fee charged on the anniversary of the opening of your account will be waived if you set up E-ZVestsm within 30 days of opening the IRA. (This fee waiver will only occur if the monthly or weekly E-ZVestsm remains in place until the anniversary of the account opening.). Plus - you receive a tax-deferred status on your investment. Tip: These options might change, so check often to see how you can benefit from an IRA through BUYandHOLD.

If you've already accomplished all the above, then you deserve an award and a reward. Tip: Don't jump on the very next plane to Paris without an airline card that awards extra mileage. Additionally, check around for the best deals on hotel rooms if you're traveling locally. If you plan to purchase a large-ticket item instead, check the market cycles to see when you can purchase that item on sale or at a discount. For instance, winter items will be on sale now, and summer items will be on sale this fall. Yes, this takes patience, but you waited a year for that refund anyway, right? There you go.

Until Next Week,
Linda Goin

The securities markets are subject to the risks of fluctuating prices and the uncertainty of rates of return and yields inherent in investing and past performance is no guarantee of future results.