If you’re like two-thirds of Americans, you’re expecting to get a tax refund this season. Instead of making a spontaneous purchase or using it for everyday expenses, consider how you can use it to pursue your goals. Whether you want to achieve homeownership or a more secure financial future, keep reading for a few tips from Guthrie Community Credit Union on making the most of your tax refund this year.
1. Pay Down Debts
You can’t go wrong by using your tax refund to pay down or pay off debt – whether it’s student loans, a car loan, credit card bill, or other outstanding debt. You’ll make more progress in the repayment process and be closer to having more money in your wallet every month. If you’re not sure which debt to pay down first, start with the one that has the highest interest rate.
Here’s another tip for paying off your car faster: You can refinance your car loan with GCCU. We offer competitive rates and flexible terms to accommodate a wide variety of financial situations.
2. Start or Diversify Your Investment Portfolio
Even if you’re new to investing, you probably know that stocks and bonds can help you grow your wealth. But you may not have thought of using your tax refund to do just that. Consider consulting with a financial advisor to make the most of investing your refund. Or, if you’d like to save specifically for retirement, you can contribute your tax refund to a 401k or Roth IRA.
3. Save For Your First Home
If you’ve already started saving for your first home, consider putting your tax refund toward the down payment. You’ll be even closer to achieving homeownership and make yourself eligible for better mortgage rates – no additional budgeting necessary. Already own a home? Save on interest and pay your mortgage off faster by contributing your tax refund to the principal on your home mortgage.
4. Make Home Improvements
Have home upgrades been on the backburner for a while? Put your tax refund to work in a way you’ll use every single day, whether it be new flooring, a new kitchen appliance, bathroom update, or other home renovation. Spring is also a slower season for contractors, which may make tax season an especially savvy time to schedule renovations.
5. Start an Emergency Fund
Think about setting your tax refund aside to start or grow an emergency fund for unexpected and potentially time-sensitive expenses. An emergency fund can be used for all kinds of situations, including immediate emergencies like a car breakdown or unforeseen situations like loss of income, medical bills, short-notice moving costs, or a new car down payment.
Make the Most Out of Every Financial Move with GCCU
You’re eligible to become a Guthrie Community Credit Union member or borrow from GCCU if you live, work, worship, or attend school in Tompkins, Schuyler, Tioga, Chemung, or Steuben Counties, in New York, or in Bradford or Tioga Counties in Pennsylvania.
Build a stronger financial future for yourself, your future, and your family by banking where members come first. GCCU is proud to offer our members competitive rates, discounts, and flexible terms in order to help them achieve the goals that matter most to them.
Open an account today or learn more about everything GCCU offers online.