Hardly anybody gets cash for free. Chances are its hard-earned money, your hard-earned money. This is why you need to be responsible for how you spend it. While knowing that you need to account for your finances, it’s sometimes hard to follow with fiscal responsibility. Therefore, there’s the need to seek personal banking services.
Once in a while, you might get more cash than you need, like when you get a tax refund. You know you get your tax refund within three weeks of filing. Instead of spending it, TAB Bank recommends the following ways to use that tax refund:
Channel Towards Your Mortgage
Did you know that prepaying your mortgage could save you a lot of money in the long run? You should know your marginal tax rate and respective interest rate. Any mortgage payment you will do would go a long way in paying your interest, which will make a significant difference in settling your home loan.
Set Aside Emergency Fund
Sometimes, life can get unpredictable that it’s necessary to have a financial cushion you can lean on during difficult times. Create an emergency fund that could last for several months. It’s best if you put the cash in a savings account that accrues interest yet is accessible whenever an emergency strikes.
Clear Your Debt the Soonest
Debts are an enemy to financial progress. Use your cash to pay off debts and save the interest. This way, you will have more money in your hands and one less bill to pay.
The above-mentioned ways are examples of how you can use your tax refund wisely instead of squandering it with friends in ways you will regret later. Financial success is not an accident; you need to plan for it and take deliberate action to seek personal banking services and work towards achieving monetary freedom.