Making the Most of your Tax Refund
Do you usually receive your tax refund in April and then wonder where it went to at the end of May? Make your tax refund work smarter and harder for you all year long by following these simple tips.
Pay down debt. There's nothing more rewarding than eliminating a monthly payment. Consider using your tax refund to reduce the principal you owe on a credit card, auto loan, or other personal loan. Not only will you save money on total interest paid and pay off your debt sooner, you'll improve your credit score and free up that monthly payment for something else.
Open a savings account for a specific goal. It's not easy to save up for big ticket items like a new car, a bathroom remodel, or a vacation. Use your refund to boost your savings efforts by opening up a Member's Choice Savings account. Stay focused on meeting your goal by naming your account and tracking your savings progress using Financial Center's online money management tool, The Hub.
Start an Individual Retirement Account (IRA). It's never too early (or late) to begin saving for retirement. Not only will compounding interest of an IRA help your nest egg grow more steadily over time, you'll also enjoy tax benefits that you can claim on next year's return.*
Make a large purchase. Have you been eyeing a new patio set for your deck or a new high definition TV? Reward yourself by paying cash for a big ticket item versus putting it on a payment plan.
*Consult your tax advisor regarding tax benefits.