I advise MANY people about money. I see the same mistakes being made over and over again.

If you have, don’t worry. I’m here to help you get it right THIS year! The fact is that money makers need a money coach, just like gymnasts need a gym coach.

As your Money Repair coach, these are the thinking and behavioral mistakes I want you to avoid:

* Don’t think of your refund as free money or lottery winnings. It’s not! That refund is the hard-earned dollars that you loaned Uncle Sam interest-free, all last year.

* Do not spend the refund, or SPEND IT TOO MUCH, if you still do not have the cash in your hands.

* Don’t spend the entire refund to pay off a debt.

OK. So now you are Money Smart on what NOT to do with that refund in 2009.

Here are my EASY Money Smart moves that YOU can make to better manage your income tax refund this year.

First, divide your refund into thirds: 3 equal amounts.

Why 3 equal amounts? Because we want to use that refund, no matter how small or large, to handle the past, present and future.

Use one third to handle the PAST paying debts. Start with your most pressing debt … whether it’s the one with the highest interest rate or the one with the biggest consequences for not paying it.

Use a third for something you need or want in the PRESENT. If you can, use that money for FUN. Do something that is NUTRITIVE for you, something that makes you feel GOOD. How about a mini vacation, a night of good food and great entertainment, or a day at the spa?

***Of course, if your car’s brakes go off, or you have some other urgent need, you’ll need to do it FIRST.***

Finally, use a third to manage some aspect of your FUTURE. Here are several Money Smart suggestions for you to think about.

* Put money in your Anti-Emergency Fund.

* Put money in your Sleep EZ Background or save for retirement through your 401 (k), 403 (b), IRA (traditional or Roth).

* Put money in college education funds (Coverdell IRA or 529 plans) for your children or grandchildren.

Why is this “thirds” approach such a good idea? Because it will take care of a variety of wants and needs, AND it will take several easy Money Smart steps towards your BIG goal of financial freedom!

Here’s how you can have MORE fun with YOUR 2009 tax refund.

As always, if you have any questions, please visit my website http://www.MendYourMoney.com for contact information. I am here to be YOUR coach and make sure YOU succeed.

Cindy

PS …

Now is also a GREAT time to “check your paycheck”:

* Re-evaluate how much money you are contributing to your 401 (k) or 403 (b).

* If you received a huge refund, remember you were just putting YOUR money in Uncle Sam’s pocket. There’s no point giving Uncle Sam an interest-free loan! Adjust your deductions so that sufficient taxes are withheld from your paycheck.

PPS …

Download my latest free report at http://www.MendYourMoney.com