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Financial Tips

Posted on by djbechard

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

Financial Tips

Posted on by djbechard

Create a vacation savings account.  Rename a savings account to the location of your vacation destination. Set up a recurring deposit into that account either from your paycheck or checking account.

Take advantage of your retirement contribution match. Don’t leave free money on the table. Some employers will deposit into your 401(k)-retirement account based on the amount you put in yourself. This is a great way to increase your retirement savings. Find out your employer’s match and start maximizing your earnings.  If you are self-employed and need to find your own retirement plan, reach out to your financial institution and ask about their individual retirement account (IRA) options.

Take $5 to treat yourself when your taxes are filed. One aspect of positive money management is to bring joy and celebrate. Reward yourself for financial discipline!

File your taxes early – Three benefits from filing early:

  1. Receive your return faster.
  2. Allow more time to make your refund work for you.
  3. If you owe money in taxes, you’ll have more time to plan and prepare your payment.

For more information on how to get ready to file taxes, visit the Get Ready page of IRS.gov at https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-next-years-taxes

By: Brenda Langdon

Are You on Track to Retire?

Posted on by djbechard

Most Americans aren’t saving enough for retirement. According to the National Institute on Retirement Security, more than 75% of Americans have retirement savings that fall short of what are considered “conservative” savings targets. Further, 21% aren’t saving/investing at all.

How much money you need to save/invest depends largely on your goals, health, and lifestyle.  Financial experts recommend that you save 15% of your income every year starting at age 25 . That would put you in a good position to retire by the age of 67.  Keep in mind that you will be earning interest on your contributions.

Don’t be discouraged if you cannot afford to set aside a full 15% of  income for retirement. Remember investing any amount for retirement positions you to benefit from compounding interest as soon as possible. Time is your most powerful ally for retirement savings. Enrolling with your employer’s retirement plan is one of the best ways to start saving for retirement. If your employer offers a match, take advantage of that! You can slowly increase your contributions so you can get the full match to maximize your savings, because that’s free money!

If your employer does not offer retirement savings options then you can open your own Individual Retirement Account (IRA) with your bank/credit union or other low-cost provider. Even if you feel like you’re behind with your retirement savings, there are always ways to catch up and save a bit more.

By: Brenda Langdon

Saving Tips

Posted on by mjsaxton@ksu.edu

There are many tactics for making saving faster and easier. One of the most effective strategies is to put away tax refunds and other windfalls to make major strides towards achieving your goal.  Make saving automatic. If you can, set up direct deposit of your paycheck so that a portion goes into your emergency fund and the rest goes into your checking account.  Or you can schedule automatic transfers from your checking to your savings – for example $50 the day after each payday.

By: Brenda Langdon