Yesterday, I was talking to a coworker and I probably make 2 or 3 times more than what she earns in a year and she was saying that she needed to pay off her bills.

So, I told her why don’t she use her tax refund to pay off her car insurance for the year and she’d save at least $60 a year from the administrative fees that insurance companies charge insurers each month.  Then use the money that she would paid on insurance every month to help pay off her lowest bill and once that bill is paid off, work on the next bill and so on.

I cannot stand paying for car insurance but we all have to have it.

If you know that you are going to get a tax refund and you have bills then pay off the bills with the refund instead of treating yourself to a trip to Las Vegas or buying a new wardrobe or using the money on a down payment for a car.

Save for the trip to Vegas, save for a new wardrobe and save for a new car.