Receiving a tax refund can be a great feeling but how do you make that money work for you for the rest of the year or even longer term goals? Here are six ways to make your refund last:
1. Create an emergency fund or add to an existing one
Whether you receive a large tax refund or not, you should always aim to save enough to cover three to six months of expenses for those unexpected emergencies.
Next step: Kitsap Credit Union has a wide variety of checking and savings options for your unique needs and situation. Check them out!
2. Pay off debt
Use your refund to pay off any high-interest credit card debt you may have. Try to pay off the debt in full to avoid interest charged added to your balance every month.
Next step: Watch this short video on strategies for debt repayment.
3. Save for the future
If you’re focused on saving for college, a home, or other big dreams, consider a certificate as opposed to a savings account. With a certificate, you’ll benefit from compounding interest while earning a higher rate of return without having to think about it.
Next step: We have several options to help you make your money grow.
4. Consider investing
If you’re looking for a higher rate of return than a certificate or savings account, think about investing your tax refund.
Next step: Did you know that KCU has an investment services that you can take advantage of? We’ll help you take charge of your financial future.
5. Access your credit union benefits
As a credit union member, you have access to all kinds of benefits including identity theft protection, home and auto insurance, life insurance, home appliance protection, and more.
Next step: Take a look at these additional products and services.
6. Further your education
If you’re looking to change careers, grow in your current one, or just want to learn something new, use the refund to purchase classes to learn those skills. You may be able to deduct those expenses from your taxes next year using the Lifetime Learning Credit.
Next step: Learn a little more about the LLC credit and how you can claim it.