Lucky enough to get a tax refund this year?
Then celebrate America Saves week by telling the IRS where to put it.
I mean, where to deposit it.
Refund jump starts savings
A tax refund is the perfect place to boost your savings. And you don’t have to choose between spending it all or saving it all.
Turns out, the IRS has a form (you knew they would, didn’t you?).
Form 8888 allows you to split your refund between a savings account and your checking account.
You can even use the form to buy U.S. Savings bonds.
Or deposit it in your IRA or 401(k). You do have a retirement savings account, don’t you?
If not, get with it and open one. The average Social Security check is $1300, not enough to live comfortably in old age.
Stand out with savings
A frightening fraction of Americans don’t have enough savings to pay for a $400 unexpected expense.
Four hundred dollars isn’t much in today’s world. And emergencies are seldom thoughtful enough to come in modest sizes.
The last government shutdown sent hordes of regularly employed folks to FOOD BANKS because they didn’t have reserves sufficient to go a month without income.
Hit the savings bank, not the food bank. Stock up on cash.
Make saving a habit
Habits are powerful. Bestsellers have been written about how they direct our behavior.
One healthy habit is to put yourself (and your family ) first when it comes to money.
Pay yourself first each month, preferably with an automatic deduction at work, if you get a paycheck. If not, write the first check each month to yourself, before you pay the rest of your bills.It doesn’t have to be a big amount to make it a habit.
Tips on saving
The non-profit America Saves site has savings tips and tricks to get you started. Their tag line is right on: Start small, think big.
