For many, receiving an income tax return is a financial boost that comes just in time. At ORNL Federal Credit Union, we want your tax return to make a lasting impact on your financial wellness. Instead of letting that extra cash burn a hole in your pocket, consider these smart ways to put it to work for you.
1. Build or Strengthen Your Emergency Fund
Life is unpredictable, and an emergency fund can provide peace of mind when unexpected expenses arise. Financial experts recommend saving three to six months' worth of living expenses. If your emergency fund is lacking or nonexistent, your tax return is a great way to jump-start it.
2. Pay Down Debt
High-interest debt, like credit card balances or payday loans, can weigh heavily on your finances. Using your tax return to reduce or eliminate debt can save you money on interest and free up cash flow for other financial goals while also helping maintain your credit score!
3. Invest in Your Future
Consider contributing to a retirement account like an IRA or 401(k). Even a small investment now can grow significantly over time thanks to compound interest. If you already have retirement savings, you might explore other opportunities, such as opening a share certificate. For more information on our current certificate rates, including our new tax refund certificate promo, please click here.
4. Boost Your Education or Career
Your tax return could be the key to advancing your skills or career. Use the funds to take a certification course, enroll in a class, or attend a professional workshop. These investments can increase your earning potential and job satisfaction.
5. Make Home Improvements
If you own a home, consider using your tax return for repairs or upgrades. Focus on projects that improve energy efficiency, such as adding insulation or upgrading appliances. These improvements can lower utility bills and increase your home’s value.
6. Fund a Long-Term Goal
Whether you’re saving for a down payment on a house, planning a dream vacation, or building a college fund for your children, your tax return can help you get closer to achieving those goals. Setting aside the money in a high-yield savings account can also help it grow while you plan.
7. Give Back
If your finances are in good shape, consider using part of your return to support causes that matter to you. Donating to a charity or community organization not only helps others but can also be a fulfilling way to give back.
8. Treat Yourself Responsibly
It’s okay to use a portion of your tax return to enjoy life. Treat yourself to something meaningful, like a small getaway or a special purchase. The key is to plan and budget so it doesn’t derail your other financial priorities.
Your income tax return is an opportunity to take a step toward greater financial stability and success. By using it wisely, you can make meaningful progress on your goals and set yourself up for a brighter financial future. Before spending your return, take time to reflect on your priorities and create a plan that aligns with your long-term aspirations.
Not sure where to file your income tax return this year? At ORNL FCU, we are happy to offer exclusive, member-only discounts on tax services that make filing easier. Save 20% on TurboTax®, whether you file yourself or have an expert file for you, or save up to $25 on in-office tax prep services from H&R Block and have your taxes filed by professionals who can ensure your maximum refund. For more information on this, please click here.
Remember, financial wellness is a journey, and every step counts. Make this tax season the moment you take control of your financial future!