Tax season is in full swing, and the IRS has processed and delivered more than one billion dollars in refunds so far this year. Whether you’re receiving a tax refund or not, now may be the perfect time to spring clean your personal finances. Here are a few ways to get started:
Save those extra funds: Studies show the latest tax refund trends will go towards paying down debt and setting aside to save up for large purchases like a car or home. Start by tracking your monthly expenses and categorizing each expense as a want or a need. Avoid using a credit card if you are unable to pay the balance before each month to avoid interest charges and make a plan to pay off any outstanding debt. Financial experts recommend having an emergency fund covering 3 to 6 months of living expenses if you can. If not, start with an emergency fund goal of one thousand dollars.
Get invested: Investing can be the best way to grow your financial portfolio. According to a recent study from MagnifyMoney, more than three-quarters of millennials wish they would have started investing earlier. The main factors are lack of knowledge, feeling intimidated and overwhelmed at where to start. There is hope and help – many financial institutions offer free online workshops and financial advisors to help guide you through your financial future.
Reassess monthly bills and spending habits: Now is a great time to review your monthly expenses and see what you can adjust or live without. Simple adjustments like cutting down on eating out expenses, can have a large impact. Shopping around for homeowner’s or car insurance is a great way to secure some extra savings. Phone plans and home internet bills are other must have services to shop for price comparisons and savings. T-Mobile offers rate plan discounts for first responders, active-duty military and military veterans, and those ages 55 and up. T-Mobile also offers 5G Home Internet – available to more than 30 million households nationwide – for just $50 per month with Auto Pay. And, you don’t have to be a T-Mobile wireless customer to take advantage of the service.
Treat yourself: Spoiling yourself is not a bad thing, in fact, studies from the American Psychological Association have shown it to be a good boost to your overall mental health. Upgrade your smart phone, take a trip to a new destination, treat someone special in your life or donate or volunteer at one of your favorite organizations, because you only live once.
However you plan to use your tax refund or set finance goals this year, make a plan and stay consistent.
Home Internet: Not available in all areas; customers ineligible for 5G Home Internet may be eligible for 4G LTE Home Internet or other fixed wireless options. Credit approval required. AutoPay: $5/mo. discount may not reflect on 1st bill. Sales tax & regulatory fees included in monthly service price for qualifying accounts. For use only with T-Mobile Gateway for in-home use at location provided at activation. If canceling service, return gateway or pay up to $370. See T-Mobile.com/OpenInternet for network management and performance details.