Tax season is here and the refunds are rolling in. Chances are you’ll be getting a nice little chunk of change.
It’s tempting to use it to treat yourself, right? While using a small percentage for something fun is understandable, you want to save the majority for something that works for you. Think of it like this: taking care of important things now will eventually lead to being able to spend more on what you want more often in the future.
Here are a few suggestions for your refund:
Pay off your debt
This is especially true if you have a high-interest loan or credit card. Even if your refund doesn’t take care of it completely, you can still make a nice dent. Less debt today means more cash flow tomorrow.
Deposit into a savings account
It can be hard to set aside money from your paycheck, so your refund is great for a savings account. DECU offers Savings Programs, starting at only $5 minimum balance.
Open a CD
There aren't many guarantees in life, but a certificate can guarantee a better return and more savings. At DECU, when you deposit in a share certificate you will receive a guaranteed rate of return, your money is federally insured to at least $250,000 and backed by the full faith and credit of the United States Government, and each account insured up to an additional $250,000 through ASI’s Excess Share Insurance.
Start an emergency fund
What would you do if you or your partner lost their job today? Do you have enough funds to carry you through a couple months? Set up a special account or place for your “emergency fund.” This fund should be set up to cover your basic expenses for a few months.
Open an IRA
An Individual Retirement Account is another way to save money for your retirement.DECU Investment and Retirement Services include a no-cost, no-obligation consultation appointment. Our ongoing support is dedicated to meeting your financial needs.
Use it as a down payment
If you’re in the market for a new home or car, you can use your refund to put more cash up-front. This will reduce the amount of financing you’ll need, and reduce your monthly payments.
Fix up your home
If you’ve been putting off important home repairs or energy-saving improvements, now’s the time you can get it done.
Get up-to-date on your car’s maintenance
A well-maintained car can last you a long time. Check with your mechanic about what you can do to help your vehicle last longer and be more efficient.
Take a class
A college class may help you get ahead in your career, or feed your personal hobby. Check with your local college about what they offer for community members.