It’s tax refund season! When you get your refund, you might be tempted to go out and buy some of those things you’ve been checking out at the store. And while this might make you feel good for a moment or two, let us here at HomeSource give you a few tips about what you can do with your refund that will help you reach some financial goals.
Start or add to a savings plan: Putting a little bit of money aside every week or two is always a great idea to save money, but being able to start off with a chunk of money will put your savings plan way ahead.
Set aside an emergency fund: Many financial educators recommend that you have an “emergency fund” set aside for unexpected expenses or circumstances such as a vehicle repair or even a job loss. This fund would ideally be 1-3 months worth of your monthly expenses that you can tap into in the event of an emergency. Having a few weeks of living expenses set aside can be the difference between surviving and financial ruin.
Get ahead of birthday and holiday gift giving: Instead of scrambling when the holidays or birthdays come around, put a portion of your refund into a savings fund specificially for those expenses.
These are just a few tips on ways to use your tax refund to your best advantage. Contact HomeSource to find out more about our Financial Education and Coaching programs.