By Kris Keller
Multipli Financial Wellness Advisor
Many of us view tax time as spending time, whether it’s because we’re getting hit with an unexpected tax bill or looking forward to all of the ways we plan on spending that long-anticipated tax refund! Whether it’s a down payment on a new car, booking a vacation, or paying down some debt, it’s easy to spend that refund three different ways before the check even hits our account.
But what about committing to putting some of your tax refund towards reaching your savings goals? Whether you’re working towards that fully-funded 3-6 months of essential expenses
socked away for an emergency or just starting out by trying to scrape together $400 bucks so that you can handle an unexpected expense, a chunk of your tax refund is a great way to get started on your emergency savings.
However, emergencies aren’t the only thing to save for. For instance, experts recommend saving one to three percent of your home’s value to be ready for repairs and upgrades. The median home price in Springfield is just under $150,000; that means working to save $1,500 to $4,500 in an account set aside for home repairs for most Springfield homeowners. Whether it’s the air conditioner going out in the middle of August or a roof that leaks like a sieve, you’ll be thankful you saved when the unexpected happens.
What about jump-starting an IRA
or setting some of your tax refund aside to deposit into your workplace retirement account? Windfalls like a tax refund can boost your investments as you look toward the future. Remember, you can still make IRA contributions for the 2019 tax year through April 15th; talk to your tax advisor for more information.
Once you decide how much of your tax refund to save, don’t stop there! Make saving effortless and automatic by sending a portion of your paycheck to your Multipli savings account each pay period either through a payroll deduction or online banking. Whether it’s $20 per paycheck or $200, knowing that you have something stashed away for an emergency can bring tremendous peace of mind.
Give us a call and we can help you get started.