It’s that time of the year again. The time of the year when you cross your fingers and hope that you receive a tax refund. If things turn out this way, it won’t be long before you’re considering how to best use the money. 

Here are five of the best ways to use your tax refund:

1. Put it in an Emergency Savings Account

You can’t go wrong by putting money in an emergency savings account. It may not be the most exciting thing you can do with a tax refund, but you’ll be glad that it’s there when you need it in the future. 

2. Pay Down Debt

Do you have student loan debt? How about a personal loan? What about credit card debt?

Any time you find yourself with an unexpected amount of money — such as a tax refund or work bonus — consider throwing some or all of it at your debt. Depending on the amount of your refund and how much debt you have, you may be able to eliminate a liability once and for all. Imagine how good that would feel. 

3. Upgrade Your Home

From new hardwood floors to a fresh coat of paint, there’s no shortage of ways to upgrade your home. And remember, it doesn’t take thousands of dollars to upgrade your home. With a little bit of creativity you can upgrade your home for $100 or less. 

4. Treat Yourself 

Depending on your overall level of financial health, it may be okay to treat yourself with your tax refund. This can take on many forms, from a night out on the town with your spouse to a cruise to a new flat screen television.

Before you do this, make sure that the money isn’t better served for something else, such as paying down debt or adding it to your savings. 

5. Further Your Education

There are more ways today than ever before to further your education. You could enroll in college part-time or full-time. You could take night classes at a community college. You could join an online course to help you grow your current career. 

It’s hard to go wrong when you’re spending money on your education. As long as you see it through, you’ll end up in a better place than where you started. 

Final Thoughts

While these are five of the best ways to use your tax refund, there are other options to consider. If you’re unsure of which path is right for you and your money, put it in savings for the time being. This will give you the time you need to compare your options and make a well-informed decision.