An unexpected expense or loss of income can financially sink us and drown us in debt. But a well budgeted tax return can be a life raft. Habitat HOPE is here to show you how to stay financially afloat by making the most out of your tax return.
One way to use your tax return wisely is to create or contribute to an emergency fund. An emergency fund is a separate savings or bank account used to cover or offset the expense of an unforeseen expense. During a harsh winter and a global pandemic, unexpected expenses can pop up anywhere whether it be car or home repairs, or a medical bill you weren’t expecting.
A good rule to follow for an emergency fund is to have 3 months of living expenses saved in an emergency savings account. This may seem like a lofty goal, but even $500 saved can help you weather many emergencies. Earmarking a portion of your refund toward this goal will give you a great head start and may be the life jacket you need during an unexpected life event.
On Tuesday, Feb. 23, Habitat HOPE will host this month’s virtual HOPE Huddle – How Your Tax Return Can Help You Reach Your Goals
Join us for a discussion on emergency funds, saving for retirement, and paying off debt. Your tax return can be a great way to jump start your financial goals. Learn some great tips and ideas on how to determine your needs vs wants and how to budget your tax refund to make the most of it.