What’s the first thing you think of when you think of filing your annual taxes? REFUND. Whether it’s a large amount or a small amount it’s always a nice addition to your account at the beginning of the year.
Start Your Taxes
By now you should have most, if not all, of the forms you need. Now you have to ask yourself… be responsible or let loose? We say, why not do both? Take the time to sit down and make a plan that will allow you to pay some bills, self-indulge, and still set yourself up for financial success in 2019.
- File your taxes as early as possible. The sooner you file, the sooner you could receive your refund.
- Select direct deposit instead of waiting for a check in the mail. You will have access to your funds as soon as they are deposited.
- Utilize services like Turbo Tax that have 24/7 access to experts, and allow you to file on your schedule. As a member of Workers you can save up to $15 by using TurboTax through Workers online banking.
Save Your Tax Refund
The importance of having a savings account cannot be stressed enough. Keep your spending account separate from your savings account so that you always know where you stand with your financial goals.
- Give yourself peace of mind and start an emergency fund or add to an existing one. Don’t always rely on credit cards to bail you out. The more you can pay out of pocket the less impact an emergency can have on your financials.
- Make a pledge to save with America Saves to get daily tips and monthly challenges to keep you on track with your personal savings goals.
- Work on saving for a down payment on a new house or apartment. Every little bit helps towards large but attainable goals.
Spend Your Tax Refund
Bills, bills, bills. We all have them and we all have to pay them. Make a plan that can set yourself up for success. That could mean making a large payment or several small ones.
- Payoff small balances on credit cards. The sooner debt is paid the more financial flexibility you will have and you could help your credit score along the way.
- Make an extra payment on your auto loan or mortgage. If possible, have the amount go towards principal only. This won’t skip a payment for you but it will lower your balance and could mean less interest you have to pay in the long run.
- Schedule an oil delivery to top off your oil tank. The colder winter days have just begun and living in New England you never know when a foot or more of snow could fall or an arctic blast could swoop in from the north.
Enjoy Your Tax Refund
Savings and bills are important, but life is about balance. It’s okay to treat yourself once in a while. It doesn’t have to be an overly expensive indulgence either. Do what fits in your budget. Something as simple as bringing the family out for ice cream on a week night can feel like an indulgent treat!
However you plan on spending (or saving) your tax return, be smart about it! No one knows your financial goals better than you and no one else has the power to reach them but you. Assess your financial landscape, then create a plan on how you can save some, spend some, and enjoy some!