Now that the tax deadline has passed, its time to get onto more enjoyable things — like spending that tax refund! According the IRS, the average tax refund so far in 2014 is $2,831. What are you going to do with all that money?

While a tax refund may seem like a free gift or a windfall, it´s not! That refund is just your own hard-earned money that Uncle Sam has used interest-free for a year. Before you go on a spending spree, think about ways you can use your tax refund to improve your family financial
situation. Here are four smart uses for your money:

1. Pay off bills. First priority are regular monthly bills (rent, utilities, phone, etc.) and then those with the highest interest rate.

2. Save for upcoming needs.  Build an emergency fund with enough money to get through 3 to 6 months if you lost your job or had major unexpected expenses such as medical bills or car repairs. Then, save for occasional costs like Christmas, back-to-school, car insurance and other irregular or seasonal expenses.

3. Long-term savings. Use that tax refund for future goals like replacing a car, buying a home, sending kids or grandkids to college or building a comfortable retirement.

4. Special purchases. After you have done steps 1 through 3, then consider spending a portion of your tax refund on high-priority special purchases. Ask yourself, do I NEED or WANT that new ….? Then shop around to make sure you have located and negotiated the best deal.
Be patient.

Don´t throw away part of your refund on loan fees. “Quick Refund” companies are just giving you a high-cost refund anticipation loan, which is like paying interest to borrow your own money. A little patience can save you big bucks!
Time to adjust your withholdings?

If you´ve been getting a sizable refund each year, maybe it´s time to readjust your withholdings to receive a bit more in each paycheck- to use or invest during the year — instead of waiting for a refund at tax time.

The bottom line? Put some of your tax refund toward financial security by paying off debt, planning for the year ahead, and setting money aside to help you reach your goals.