Well, you can do just that. Rather than blowing all of the money that you received back from the IRS, use it for the good of your financial future. Below you will find a few things that you can do to save or invest your tax return to better your financial future.

First off, you could start a savings account. This money can be used for future emergencies, your child’s college education and future, or even a down payment on a home if that’s what you want. This is an excellent way to invest your tax return and still have it accessible when and if needed for emergencies.

Invest your tax return into your 401(k) plan. You’ll need a savings account of some sort in order to do this with your 401(k) plan at work. Deposit the funds into a savings account and then increase your contribution to your 401(k) plan at work. For example, if you received $2,400 as your tax return, you’ll deposit it into a savings account and then up your contribution at work to $200 – $250 per month. Your paycheck will be less when you receive it but that’s why you opened the savings account so that you could replace it.

Invest your tax return into an IRA. If you open up a traditional or a Roth IRA, you can contribute up to $4,000 per year. Of course, there are requirements and limitations that must be met such as income limitations with the Roth IRA. You can only make $110,000 filing single and $160,000 filing jointly. If you do not meet these income requirements, a traditional IRA would suit you better.

Invest your tax return into an ESA. This is an educational savings account that allows you to deposit $2,000 (at this current time) on a yearly basis and your child can withdraw funds from the ESA when he or she turns 18 and use for educational and college related expenses. It is a great way to earn money for your child’s future.

Invest your tax return into a CD at a bank or financial institution. CD’s can be set up for a few months or even several years. You can deposit your tax return into a CD for say two years and at the end of the two years, you’ll have more than what you first deposited because CD’s accrue interest over time. It’s a great way to get more money from your tax return.

Last but not least, you can always invest some of your tax return in the stock market. I don’t recommend investing it all as there is just as much potential to lose it all as there is to earn off it.

Remember, if you don’t want to save or invest all of it, keep a portion of it and use the rest to invest or save. There is no reason not to splurge a little bit on yourself and your family even if you want to protect your financial future.