Tax season is over! And if you received a tax refund this year, you may be thinking, what do I do with this extra money? We all love a good impulse buy, but sometimes that results in buyers’ remorse when we realize later that we did not need that item. Consider these smart strategies to put your tax refund to good use.
Build your emergency fund
At Waypoint Bank, we are proud to stand by you and guide your success. To be more financially secure, we recommend having an emergency fund. Emergency funds can cover unexpected expenses such as car repairs, home repairs, or medical bills. The recommended amount for this fund is three to six months of living expenses. This is recommended so you can feel secure in case any unexpected financial burdens come your way. A great place to keep this money is in a Waypoint Bank Savings Account. Since this money is not part of your typical income, putting it away in a savings account is a good idea. Your future self will thank you.
Invest in retirement
Planning for your retirement is crucial for long-term financial security. If you already have a 401k or IRA account, and you haven’t maxed it out for the year, you can put some or all of your tax refund money into this account. The more you can save earlier in life, the more you will have in retirement. Waypoint Bank has great IRA options for you to look into.
Invest in yourself
Yes, you read that right. Whether it’s furthering your education, getting involved in a new hobby, or pursuing personal development opportunities, investing in yourself is something that can benefit you long-term. Use your tax refund to enroll in courses, attend workshops, or purchase books and resources that can enhance your knowledge and expertise in areas of interest. Investing in yourself not only improves your earning potential but also enriches your life in meaningful ways.
Home improvements
May is home improvement month. What better way to celebrate than using your tax refund to make home repairs or upgrades? Upgrades and repairs can increase the value of your property and make living there more enjoyable. Whether it’s upgrading appliances, renovating outdated areas, or addressing maintenance issues, allocating funds towards home improvements can be beneficial.
Charitable giving
Giving back to your community or supporting causes you are passionate about can make a life changing impact. Consider donating a portion of your tax refund to community initiatives that are important to you. Check out our community page to see how Waypoint Bank employees are involved in their communities.
Now that you have several ideas on how to use that valuable tax refund money, we hope you feel confident in spending or saving it in the right way. If you need more ideas or information on any of the ideas provided, stop by your local Waypoint Bank branch today. We are here to guide your success!
