Your tax refund can have a real impact on your personal finances and well being. Whether it's $100, $1,000 or $10,000, it's your money and now is the time to put it to good use.

Pay off your bills. Catch up on your regular monthly bills if you have fallen behind. Prioritize all non-tax deductible debts and pay off the ones with the highest interest rates first. You can essentially add a 10-18% or more to the value of your return by paying down a credit bill, not to mention all the interest you save by paying down some of the principle.

Plan for the New Year. Set up an emergency fund to get you through small emergencies, like car and home repairs or unemployment. You should work towards having 3-6 months worth of income set aside in an emergency fund. Set aside money for occasional expenses and be ready for those big bills that come infrequently but cause huge problems. You could even get a head start on your holiday shopping fund.

Save for the long term. Your tax refund can help you make progress towards your long-term goals. Take your take refund and make an IRA contributions. Even small amounts will add up. For example, $500 added to your retirement fund earning a 9% return over 30 years will be worth $68,100.

Increase tax savings. Investing in a retirement plan may also pay off for the next year by providing tax credits. Home improvements, such as replacing a water heater, storm windows and doors, qualify for additional tax credits. Most importantly, revisit your W4 withholdings at work so you will receive a smaller refund next year and more money in your regular take home pay.

With a little time and planning you can make your 2006 Tax Refund work for you!