Smart Planning For Your Tax Return
Are you expecting a tax return this tax season? It’s important to put your refund towards smart financial goals. Here are a few tips for using it wisely.
Add To Your Emergency Fund
A lump sum from a tax refund can help you build on your emergency fund to stay prepared for the unexpected curveballs life throws. If you don’t already have an emergency fund, start now. You’ll be glad you took this smart financial step.
Lessen Your Debt
High-interest debt can be a big drag on your financial bottom line. Use your tax refund to pay off outstanding high-interest debts, whether its credit card debts, payday loans, title loans, student loans, auto loans, or debt consolidation loans.
Consider Updating Your Home
You can use your tax refund to refinance your mortgage* or to make home improvements and repairs to keep your home up-to-date and potentially increase its value. Perhaps it’s something you’ve been meaning to do for a long time but felt it could derail your budget. Now is a good time to do it. If your refund doesn’t cover the entire home improvement project, consider getting a HELOC from Bragg Mutual FCU.
Save For A Splurge
You can also consider putting the money away in a savings account as you make plans for the much-needed family vacation or special purchase. You can start saving right away with a Bragg Mutual FCU Vacation Club account and make a dividend.
Make a Charitable Donation
A tax refund is a great opportunity to support charitable causes. By doing this, you’ll not only be impacting positively on your hometown/community but also reduce your future tax burden, as you can use the money donated to claim a tax deduction on your next return**.
For more money tips like this, visit BraggMutualFCU.org/Category/Money-Tips.
*Subject to credit approval. Rates disclosed reflect our best rates and may be different based on credit underwriting or services used. All loan or deposit rates are subject to change without prior notice. The information posted here is a service to our members. Although BMFCU strives for information accuracy, we do not guarantee or warrant information posted here.
**To understand how your taxes may be affected by a charitable donation and for further tax information, please consult your tax professional/accountant. Although Bragg Mutual Federal Credit Union strives for accuracy, we do not guarantee information posted here.
This credit union is federally insured by the National Credit Union Administration.