START AN EMERGENCY FUND
This may seem like a no-brainer, but if you have an unanticipated emergency, you’ll be glad you took this smart financial step. If you can’t stomach putting all of your refund in an emergency fund, put in half, says Martha Menard, a financial wellness coach in Charleston, South Carolina.
“So many people are unprepared to handle even a $500 unexpected expense without going into debt,” she says. “Having an emergency fund gives you a cushion for the unexpected curveballs life throws.”