Making Money-Wise Decisions with Your Federal and Massachusetts State Tax Refunds
By: St. Mary's CU
Everyone loves receiving their tax refund, but many people are unprepared to make financially savvy decisions with such a large lump sum of money. Common purchases around tax season routinely include expensive shoes, the latest electronic gadgets, and new vehicles. While some of the following items can be considered necessities, there are plenty of wiser ways to make your money work for you.
As a not-for-profit organization, St. Mary’s Credit Union is here to keep your money safe and help you responsibly grow your assets. Below, we detail some of the best ways for you to use your federal and Massachusetts state tax refunds wisely.
Invest in Yourself
Investing in yourself is undoubtedly one of the wisest ways to spend your tax refund. It can be just the tool you need to take your career to the next level. Increase your personal capital and make yourself more competitive in the workplace by using your refund to take a course and learn a new skill.
A tax refund can also be used as a convenient source of funds for improving your small business. For example, purchasing a fuel-efficient mower for your landscaping business or investing in a website redesign can give your bottom line an added boost.
Pay Off Debt
Carrying high levels of debt is a sure way to limit your financial growth and prosperity. Every dollar of interest paid is one less dollar in your pocket – and potentially one less dollar working for you. Putting a dent in your debt is one of the best ways to utilize your tax refund. Once you are debt-free, you will breathe a sigh of relief and be able to start exploring ways to save and invest your money.
Save for the Unexpected
Setting aside six months’ worth of living expenses is a commonly recommended strategy to help mitigate the effects of an unforeseen financial obstacle, like losing your job or incurring a large medical expense. At St. Mary’s Credit Union, we make it easy for our members to save their tax refund with our lineup of interest-bearing accounts. If you have six months' worth of living expenses saved up, you are ready to start exploring potential investments.
Invest for the Future
Putting your hard-earned money into the stock market – and leaving it there for decades – is a stomach-turning thought for most inexperienced investors. Although you will routinely see the value of your investments fall by 50% or more, investing in the stock market for the long term is your best bet to grow your money over time. If you are ready to start your journey of building wealth, check out our selection of individual certificate of deposits (CDs) and retirement accounts.
Taking the Next Step
There are many useful ways to utilize your federal and Massachusetts state tax refunds. From saving to investing, St. Mary’s Credit Union is here to serve all your banking needs. If you are interested in opening an account or speaking with a member service representative, please contact us today or visit one of our convenient locations in Massachusetts.