So you are getting a tax refund and it feels pretty good. Stop you should not be celebrating? All that means is the government has had an interest free loan from you and can you really afford to do that? I can't.
 
This is not found money and I think it should be put to good use.
 

  • Increase your retirement savings helping you to secure a good future while reducing your tax bill next year. win/win
  • If you have children one of the best investments you can make is in their future by way of post- secondary education - considering putting that money into an RESP
  • None of us know for sure when the roof will leak or you find yourself unemployed - if you don't have an emergency fund start one with your refund - some say have enough money to cover 3 months living expenses, I suggest 6 months or maybe even a year. Err on the side of caution.
  • Give to your favourite charity and reap the benefits of having a great tax deduction while enjoying benefit of giving back.
  • Consider replacing old appliances there are no longer energy efficient - a newer model could wind up saving you money
  • Make yourself more marketable by using the refund to take additional courses so you remain current and competitive
  • Thinking of a short term purchase like a home - save the refund and put it into a Tax Free Savings Account.

 
What do all of these things have in common - they add value to your overall portfolio. So what about taking a vacation with your family… absolutely. It is all about balance and even I don't want anyone to save until it hurts nor should they spend as if there is no tomorrow.
 
Blowing  the money frivolously is just such a waste.
 
The only thing I really want you to do before you put that refund to use is to think adding value to my whole life or loosing value. It makes the decision a whole lot easier.