Use Your Tax Refund to get ahead

If you are like most people, you are looking forward to receiving your tax refund. Here are some tips for how you can use your tax refund to get ahead.

1. add to your emergency savings.

An emergency savings is a critical part of planning for your financial future. When life gives you a pinch - think major car repair, or your refrigerator stops working, etc. - you need access to money. Consider using some of your tax refund to build or replenish your emergency savings. Ideally, you want to have enough saved to cover 3- 6 months expenses.

2. start a holiday savings.

Open a holiday savings with us to plan ahead and be prepared for the holidays. You’ll be able to wow that someone special with a great gift.

3. build your credit.

Put that refund to use by doing a share secured loan or a share secured credit card to build or rebuild your credit. We offer both and making those payments on time will help your credit score. Remember when opening a new credit card, if you keep your credit utilization ratio below 30%, you’ll see an appreciable increase in your credit score. Get your ratio down to 10% or less to max out this portion of your credit score.

4. pay down debt.

Using your refund to pay down your student loan debt or your credit card debt, you could put a dent in your principle balance and get closer to living life debt free! Remember- some lenders may charge a pre-payment penalty, so make sure you know your lender’s policy before making your payment.

5. plan for the future.

If you are focused on planning for your future goals, consider allotting funds to your retirement account or to your child’s college fund. Going this route allows your money to grow, thanks to compound interest. It’s never to early to start saving for retirement or your child’s education.

Another way to plan for the future is using your refund to save for a down payment on a home. Using your tax refund to save for your down payment could move your homebuying timeline up by an entire year!

There are many ways to use that money effectively. You earned this money with every passing paycheck. Your tax refund can be a great opportunity to make some progress reaching your brighter financial future!

Financial Calculators

The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.