Spring Into Smart Tax Refund Ideas | St. Johns Bank

The sun is shining. The birds are chirping. The tax refunds are slowly making their way to many American homes. Are you one of them?

More than 50% of respondents of Americans in a recent survey expect their tax refund to be lower this year due to pandemic aid programs. But no matter the size of your tax refund, you can put it to good use!

Our team at St. Johns Bank wants to offer you tips on how you can use your tax refund wisely in 2022. Start with these ideas:

Build Up Your Emergency Fund

Have you been meaning to start an emergency fund but haven’t had the chance to save any money for it yet? Or maybe you’ve been saving, but haven’t made much traction. Now is your chance to grow it, as your tax return could help to build a strong foundation for an emergency fund.

Remember, you want to at least have three to six months of monthly expenses saved so that in case anything occurs, you are able to cover your cost of living for a few months to give you time to rebuild. Ideally, you’ll save enough for a year over time.

Tackle Your Debt

Do you have at least $1,000 in savings? Then, you might want to consider using your tax return to pay off debt, especially on the credit card with the highest interest.

Wouldn’t it be nice to start the spring season debt-free? Allow your tax refund to help you do that this year! But consider the type of debt first. If your only debt is the “good” kind, like a home or student loan, you might use the money toward savings instead.

Take Your Career to the Next Level

Want to turn your side hustle into a full-time job? Use your tax refund to put more money into your side hustle, which can help to grow your business. Carve out the space for an office in your home, buy more supplies or invest some money in marketing your business.

Or you could even use your tax refund to take a few college courses that can help you to grow in your current career. After all, knowledge is power!

Need to open an account or two in order to better organize your finances? We are here to help. Contact the financial team at St. Johns Bank today to get started!