Plan tax refund dollars. Make a plan for tax refund dollars before they hit your bank account. Some options to consider as you make your plan include:
- Pay down debt
- Build your savings
- Jump-start a financial goal
- Give to someone in need
- Invest
Create your will. There are many free or inexpensive forms available online that can guide you through creating a will. Your employer may also provide access to legal services. If you use an online form, make sure it is specific to your state.
Put 5% of your tax refund into your savings or emergency fund account. If you won’t receive a tax refund, add at least $5 extra to your savings or emergency fund this month. Small amounts add up over time.
Become financially confident. Financial confidence is the intersection of building a savings habit, knowing what resources you have available to support your financial stability, and taking advantage of those resources as needed. Financial confidence recognizes that Savers have unique circumstances, and even if you are in a scenario that makes it difficult or impossible to save at this moment — you are committed to doing the work, taking control of your finances, and becoming more financially stable.
By: Brenda Langdon
