March means it is tax season again, and you may have a well-deserved tax return coming your way within a few short weeks. It’s always tempting to splurge on a new pair of shoes, new TV or a shopping trip when your tax return arrives.
Although these options seem exciting, Security State Bank has some realistic ways for you to spend your tax return money. Our tips may seem not seem as flashy or exciting, but they will put you in a better place for your financial future.
Smart ways to use your tax return:
- Lower your credit card debt- credit cards typically carry high interest rates, so it is best to make paying them off a priority. Carrying a balance from month to month causes interest to pile up, which could leave you paying hundreds each year in interest.
- Start an emergency fund- what would happen if you lost your job or couldn’t work because you became disabled? An emergency fund can help your family in any time of need. A money market account makes your money easily accessible while earning interest.
- Plan for a family vacation- a vacation is always well deserved, so why not start saving now? Whether you are heading to the beach, an amusement park or taking a long road trip, saving for your vacation now ensures you’ll have more than enough cash this summer.
- Pay your mortgage off early- your tax return can help pay off the mortgage a little sooner than expected. You can save thousands on interest payments by making a large extra payment.
Security State Bank encourages you to responsibly spend your tax return, but also have a little fun with it if you can. If you have questions about our investment services, savings accounts, or credit cards, contact us today.