Tax Refund on the Way? Things to Do with Your Refund!

man with moneyIf the numbers lined up in your favor this year, and you’ll be getting a refund, be sure to put it to good use. Extra money in your checking account can magically disappear unless you have a plan to:

  1. Save
  2. Pay off bills or go on a spending spree
  3. We recommend options #1 and #2. Consider using all or part of your tax refund to boost your savings in the following way:
  • Fund your IRA – Still a great thing to do, even after tax season, because you’ll have the jump on next year!
  • Open a certificate – To save for the future or a special purpose, like the down payment for a new car
  • Start an emergency fund – Things always break at the least convenient times. Your emergency fund can at least take some or all of the worry off your plate.
  • Reduce debt – Pay down those credit cards, starting with highest interest rate and work your way down. Pay off the car — how amazing would that feel?
  • Open a college savings plan – Start with a lump sum, then fund regularly through payroll deduction. Our Members Financial Services representative can steer you into a 529 plan that fits YOUR family’s needs.
  • Start a business – Why not become your own boss and be in control of your own destiny? Use your tax refund to start a business.
  • Invest in yourself – A tax refund could be used toward tuition for professional development classes, certifications or finishing up your college degree. The payoff could be tremendous when you land your next job and you love it!
  • Get healthy – Buy some exercise equipment, join a gym and commit to being the best YOU there possibly is! Again, small investment … BIG rewards!
  • Finally, go on vacation! You’ve worked hard, and a family vacation lets you refuel, recharge and regenerate for a great rest of the year!

And while you’re in the savings mode, open direct deposit to have your paycheck deposited to your account each payday.