This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Questionable Uses For A Tax Refund

A tax refund can be ideal for paying off debt, building your saving account or replacing an aged home appliance. Unfortunately, it can fund less-worthwhile endeavors just as easily.  

While there's nothing necessarily wrong with having some fun with your tax refund, you're almost sure to regret buying anything that offers few long-term benefits. After all, you may not see another lump sum like it for another 12 months - if then.

Here are five questionable ways to spend your tax refund, along with some alternatives designed to help you avoid mistakes.

What's better than getting a sizable tax refund? Making that refund bigger by placing a winning bet on an underdog pony that seems to have an extra spring in its step on race day. But before you place that or any other wager, consider the depressing walk you'll make back to your car if your hopes get ground beneath the hooves of 19 faster steeds.

The alternative: If you're dead-set on risking some of your refund, investing in the stock market may at least offer a longer period of suspense. You might also consider a mutual fund if you're able to stomach slightly less excitement.  

Yes, a party of historic proportions may produce some great memories. But unless those memories are worth the cost of drinks, food and maybe some drywall replacement, it's best to think twice. This is especially true if the memories of your last epic party are somewhat hazy.

The alternative: Throw a spring celebration, but opt for a potluck instead. If you know your friends may have received a refund as well, you may go as far as to institute a BYOB policy.

It may feel like fate when a flat-screen TV goes on sale on the same day you receive your refund. But it's not. Flat-screen TVs are always on sale somewhere. While the initial buzz of a spur-of-the-moment purchase may be exhilarating, it may not be long before it's replaced by another potent emotion: buyer's remorse.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs