Put Your Tax Return to Work For You!
Smart money moves now can mean big returns later.
It’s very tempting to go for a shopping spree when you get your tax return back. Most of us dream about upgrading our TV or owning the latest and greatest iPhone. But before you spend that cash, take a step back and think about what an impact it can have on your financial future when you make a plan for it. Below are some tax return investment ideas that can have a big impact on your financial health and well-being.
Save for an Emergency
Nearly 1 in 3 Americans don’t have some sort of emergency fund. An unexpected expense could cause real trouble without money set aside to cover such surprises. We recommend starting with a goal of $500, then building to a $1,000 emergency fund. A Save to Win CD or Any Moment savings account are great ways to get started on your emergency fund.
Pay Down Expensive Debt
Money owed for medical bills, payday lenders, credit cards, and student loans can quickly snowball into mountains of debt, and can easily ruin a credit score. Using the cash from a tax return to pay down these debts can have a big impact on your financial future and save your credit score from disaster.
Prepay Your Mortgage
Paying extra on the principal balance of your mortgage can save you thousands of dollars in the long run. Making just one extra mortgage payment each year can save tens of thousands of dollars on a 30-year mortgage.
Save It For A Down Payment
A nice down payment means lower monthly payments and possibly a better interest rate when you shop for a new car. Save yourself money in the long run by stashing some cash away so you'll be more prepared when it's time to car shop.
Increase the Equity in Your Home
Doing some upgrades to your home can pay off big in the long run. Interior and exterior improvements increase your home’s value, and installing energy-efficient materials such as windows, roofing, and appliances are a great way to start saving money now. Even a good paint job can change the feel of a space – so go ahead and get started on that project you’ve been eyeing.
Any Moment Savings
Are you in need of new appliances for your home? Are you getting married in the future, have kids who will be needing braces, or are you thinking it’s time to upgrade that old washer and dryer soon? Open up an Any Moment Savings, give it a nickname in Online Banking (like “Spencer’s Braces” or “Water Heater Fund”) and it will help you refrain from touching it until it’s time to spend. Even better, you can now open extra savings accounts in minutes through ELGA Online Banking!
Save It for the Holidays
The average American spends about $1,050 on holiday spending, according to USA Today. Gifts, decorations, and parties really start to add up at the end of the year. Do yourself a favor and start that Christmas savings account now – you’ll thank yourself later. Open up a Christmas Club at ELGA Credit Union to get started.
Start an Account for Your Kids
Opening an account for kids while they are young start them on a path of lifelong financial success. Teaching them the importance of making regular deposits develops crucial budgeting and discipline skills at a young age. Asking kids what they want to save for, whether a toy, bike, or a trip to the amusement park next summer can help them learn to set goals and teach kids that money doesn’t just magically appear when you want something. A Learn2Save CD is a great way to teach your children about financial goals.
Need help deciding what the best choice is for you? Visit any ELGA Credit Union branch or give us a call at (810) 715-3542 if you’d like some guidance!