Top Three Things Not to Do with Your Tax Refund
Tax season is officially in full swing. For some taxpayers, this time of year can have you eager and excited to receive a tax refund. These funds can be an added financial boost that can bring new financial opportunities to families and individuals. In the state of Nevada, at least 76 percent of taxpayers received a tax refund averaging $3,874 last year. However, if not used carefully, a refund can potentially put you in debt or may even miss out on opportunities to save for the future.
To help keep your hard earned money, CCCU has the top three things to avoid doing with your tax refund:
Don’t use the money to go on a shopping spree
Many people put their refunds towards shopping. If you have outstanding debt to pay off, it’s best to postpone the shopping and prioritize paying off the debts. Once your debts are paid, carefully budget for shopping in the future.
Avoid depositing it into your checking account
If you’re the type of person who rarely monitors the checking account, you might want to avoid depositing the tax refund into your checking account. It’ll be very easy to miss out on the refund when you pay the bills or make purchases. Put the funds into a savings account instead while you determine how much you need to spend for bills and necessities.
Skip the spontaneous vacation
Taking a last-minute vacation can be an exciting idea, but if you haven’t budgeted for it, this could be a recipe for disaster. If you’re looking for a quick getaway, book a trip that’s in the budget and then you can plan for a bigger vacation by opening a vacation savings account. By planning ahead of time, you’ll have more time to research the best deals and avoid overspending.
Spend with a purpose
When you receive your tax refund, make sure to make a plan for it, whatever you decide to do with it. Your plan can include paying off a debt(s), building an emergency fund, doing something fun, or saving for a house down payment. Whatever your plan is, Clark County Credit Union has the tools to back you up! Visit Banzai, our credit union’s one-stop shop for all your financial needs!