February 22, 2021Simple Way to Pad Your Nest Egg: Save Bonuses & Tax Returns
As tempting as it is to buy that luxury pool, that plane ticket to Hawaii, or those new red stilettos, it’s more important to ensure your financial future. That means not living from paycheck to paycheck. You need to put money into a savings account to stay out of debt and prepare for financial emergencies. An unexpected illness, job loss, or costly repair can send people with no savings into financial ruin. A couple of missed paychecks, and they could lose their house, car, and other cherished necessities.
While committing to a savings plan may seem hard, there are easy ways to save. Start with cutting out that daily artisan coffee drink, 100+ cable channels, and eating out for lunch. These all add up over time. But, if you want a big boost to your savings goal, use those big windfalls of cash that you receive from the government or your job.
Bonuses & Tax Returns
Those delicious, sometimes unexpected, stacks of money that are apart from our regular income make us so happy. It’s easy to immediately start thinking about all the expensive things you can buy. STOP! Bonuses and tax returns are one of the easiest ways to build your savings account and secure your financial stability.
Think about it:
They are not in your budget.
Your salary should cover monthly expenses. Depending on tax returns and bonuses for regular bills is not good money management. If they don’t come through, how will you pay those bills? Instead of cashing your next bonus check, deposit it straight into savings.
It would take eliminating lots of coffee to add up to them.
Tax returns could be a few thousand bucks. It would take two years’ worth of “avoiding your expensive caffeine habit” to add that much to your nest egg! Saving them and your bonuses is a great way to jumpstart your savings plan.
The power of time is your friend.
Spend your bonus and eventually, you will get tired of what you bought. Save it, and it works for you! Even a low–interest account adds money to your balance, and it grows over time.
Deposit the next bonus or tax refund you get right into your savings account. It may feel like a drag (that trip would have been fun!), but your short-term financial stability and long-term financial success are worth it.
We’re Here to Help!
If you have questions on budgeting or need assistance getting the most out of your accounts, stop by or give us a call at 1-800-226-6673.
Each individual’s financial situation is unique, and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; It does not constitute legal advice. If such advice or a legal opinion is required, please consult with competent local counsel.