It’s easy to fritter away a tax refund, or any unexpected lump sum of money. That’s why it’s important to avoid this mistake and make a plan for your 2017 refund now. Utilize the tips below to prepare your mind and bank account in advance for the money Uncle Sam may be returning to you.

Be a wealth builder

There’s no better time than when you receive your tax refund to adopt the mindset and behaviors of a disciplined wealth builder. The first step? View your money as a vehicle with purpose—one that can provide security in the years ahead.

Pay down high-interest debt

Hand-in-hand with being a wealth builder, is being a crusader against high-interest credit. By paying your high-interest credit cards down (or off completely), you will increase your credit score, and you can potentially lower your monthly credit card payment.

Start or increase your emergency fund

It’s a given: things are going to come up and you’ll need money to cover unexpected expenses. However, having a well-capitalized emergency fund means that you don’t have to sweat circumstances like these. So put away as much of your refund as you can in order to have six to eight months of living expenses.

Reinforce your retirement nest egg

Saving something small toward your retirement every month is great, but your tax refund gives you the opportunity to sock extra away without squeezing your budget. You’ll be happy that you made additional contributions come your golden years.

Invest in a Roth IRA

Depending on your income, age, and financial goals, you could use your tax refund to open a Roth IRA. These help lower your taxes and increase your retirement savings. Roth IRA’s also allow you to take advantage of the tax-deferred compounded growth; it’s a win-win.

Consider a permanent life insurance policy

A permanent life insurance policy is a great investment vehicle and can be used while you are still living. You can make a contribution to your policy every year when you get your tax refund, eliminating the need to find money each month to make contributions. Not only will you have one less monthly bill, but you’ll also have another investment that can help create and pass down wealth to future generations. Check with a financial planner or other investment professional to see if this and other investments are right for your specific situation.

There you have it—a sound plan for making the most of this year’s tax refund. Follow these simple tips and you’ll be building not only your wealth, but a solid financial future too.