When that interest-free loan gets paid back ...

You know the one I'm talking about … your tax refund! 😉

When I saw the Liz Pulliam Weston article

I saw the word “spend” and thought, “Oh great, just blow it on junk, why don't you!” But I was wrong in this assumption. Some excellent advice in here. Here are the seven ways she mentions:

Blow (some of) it. This is the only semi-reckless suggestion of the bunch, but it does serve a purpose. It's kind of like cheating on a diet. If you deprive yourself of everything that you liked before, there's an excellent chance that you'll snap and eat 37 hamburgers at once. So, she suggests that you “blow” 10% of your refund and have a good time.
Pay your credit cards. Use that interest-free-loan payback from Uncle Sam to pay down your decidedly non-interest-free loans to Mr. Visa and Dr. Discover.
Fund your retirement. Contribute to your 2006 IRA. Step up your saving in your 401(k). Or just invest it anywhere you see fit.
Boost your emergency fund. Having 3-6 months of living expenses is probably as important a use for money as paying down credit card debt. This should be in cash or some other easily liquidated investment vehicle.
Contribute to a college fund. There are several advantages to starting a 529 plan for your child(ren). (For those interested in college funding strategies off the beaten path, check here. There's an e-mail at the bottom that you can use to get a free report. Note: this is not for the faint of heart!!)
Continue your education. These last two tips were the best two, as far as I'm concerned. Instead of investing in stocks, bonds, or the like, invest in yourself! Learn a new skill or update the ones you have. It helps to keep yourself marketable and valuable.
Attend a conference. Same reasoning as above, plus you get the chance to make business contacts.