So, you’re getting a tax refund? That’s great!
What are you going to do with it? If you don’t have an emergency fund, you put that refund right into a savings account right now and leave it there. But treat yourself. Maybe a tall latte? Something small and tasty. And the rest goes into savings.
If you have an emergency fund, but also have credit card or other relatively high-cost debt, put that refund right against that debt. In what order? You pick: highest interest rate? Highest balance? Can you pay one off completely? Which is most satisfying. And again, treat yourself. Splurge on a grande latte. (After paying down debt!)
If you have a nice emergency fund, say, 6 months of rent/mortgage, utilities, and food, and no debt to pay down, you are a saver. So now save for something big, like a car, vacation, down payment, or education. And treat yourself to a that venti Frappuccino. You’ve earned it! Now get back to saving!