Maximize Your Tax Return
It’s tax season, and many people receive tax refund checks this time of the year. if you're one of them, you might be tempted to splurge on something but planning to use the extra funds wisely can really pay off. One of the best ideas is to pay off debt, especially high-interest rate credit cards. Not only does it save money in the long run, but you avoid having to pay extra monthly fees and interest.
Another good idea is to save the money. Add the refund to a savings account, build up an emergency fund, or put it into a qualified retirement account. Even a few hundred dollars saved or invested can grow over time and offer a safety net when needed.
The trick is to find a way to get started! We recommend using the 50/30/20 rule and divide your tax return into three categories: 50% for needs (such as food, rent/ mortgage, utilities), 30% for wants (new shoes, eating out, summer programs for your children), and 20% for savings and debt repayment (here's the important part!). This balanced approach promotes responsible spending while allowing room for enjoyment and long-term financial growth.
As always, please schedule an appointment with your Financial Wellness coordinator to guide you in your journey to financial health. We are here to help!