The average tax refund in the United States is around $3,120. What could you do with that money that would make a positive financial impact on your life? This windfall can be an excellent opportunity to get ahead, reduce costs throughout the year, and make a real difference. Unfortunately, most people will ultimately blow it on a purchase that they will likely regret within literal hours of making it. The tips provided here are designed to help you make smart choices that you will feel good about this year’s tax refund. St Anne Credit Union New Bedford has lots of great ideas and opportunities that you can use to your advantage.
Tip #1 – Pay Off High-Interest Rate Credit Cards
Reducing or eliminating your credit card debt can be a great gift for yourself. New Bedford credit savings can also be obtained when you transfer debt from a high-interest rate card to a low- or no-interest rate card. Speak with a representative at St Anne Credit Union to find out about credit options that could help you to reduce the amount of interest you pay throughout the year.
Tip #2 – Create an Emergency Account
Another great way to protect yourself from financial failure is to use your credit union checking account to set aside some money for a rainy day. Emergency accounts can also be created using a Share savings account or by opening a secondary savings account just for that purpose. Other ways to save include putting money in a money market account or learning about investment opportunities, such as certificates of deposit. St Anne Credit Union New Bedford has a full spectrum of credit union loans, savings, and investment options for our members.
Tip #3 – Invest in Your Retirement
If you have a Share IRA account at St Anne Credit Union, consider adding a bit extra to your savings. Just make sure to speak with a representative about limitations on contributions to maximize the tax benefits for next year’s taxes. If you are maxed out on your IRA contributions, consider saving the money in another way. The more you can put away for your eventual retirement, the better off you will be financially.
Tip #4 – Create a College Fund
Consider opening a 529 college savings plan for your child or children, if you haven’t done so already. It’s never too late to start saving for your kids. Speak with a representative at St Anne Credit Union in New Bedford to learn about tax-free savings opportunities for minors. Just remember to make sure you have enough emergency funds and savings for yourself before you start saving for your children. Retirement, emergencies, and future purchases, such as down payments on homes and paying off credit union loans, are more important right now. Don’t sacrifice now for the future.
Tip #5 – Donate Your Money
Well, not all of it, but consider donating a good chunk of change to a charity that matters to you. You can still deduct charitable donations, so make sure to get a receipt. Select a charity that will make a difference. Take some time to research non-profit organizations or speak with someone who can help you make an informed decision. You could also donate to your church or any other faith-based organization that you have wanted to support. Again, just make sure that you get a receipt for any large donations and that you can write-off the donation on next year’s taxes.
Visit St Anne Credit Union New Bedford
Stop by our location on Union Street to speak with a representative in person about your ideas for your tax refund. Paying off credit union loans or starting a new New Bedford credit savings opportunity might not sound like a lot of fun, but they will help stretch your refund. Imagine reducing or eliminating credit card debt, paying loans off early, or having the security that comes from knowing you have an emergency fund. All of these things can help you reduce stress and improve your daily life. At St Anne Credit Union, we are happy to help our members find new ways to take control over their finances. Give us a call at 508-993-0011 or browse our website for even more ideas and advertised specials.