Tag Archives: saving money

5 Financially Savvy Ways to Use Your Tax Refund

Taxes

Getting your taxes done early not only takes one more thing off your to-do list but further allows you to start planning for the future. Working with your tax professional, determine how much your family may receive this year from a tax refund. No matter the amount, we recommend putting it towards your financial goals for the year. Here are some great strategies we’ve tried to get the best bang for our buck:

  1. Max out your 401(k) or Traditional IRA contributions. If you aren’t taking advantage of one of these two accounts, we highly suggest opening one! These tax-beneficial accounts help holders accumulate and grow their funds without the burden of tax at the time of deposit. Each account, however, is limited by how much you can contribute. By allocating funds into these account types it may not only help you save for retirement, but also allow your money to mature throughout the years, with no additional effort.
  2. Make an extra payment on your mortgage or student loan. Paying down your loan is always a great option when selecting financial goals. In the case of a mortgage, you earn more equity as you pay, while with student loans, you gain more momentum towards financial freedom. Instead of adding money to each monthly installment, we recommend creating one lump payment. By doing this you can create a single but large decrease in your principal amount owed, drastically reducing your associated interest as well.
  3. Save for the 2017 holiday season. While holiday events, family gatherings, and memories are held dear, the burden of the season can pose potential problems for your personal finances. If you struggled saving last year, now is the perfect time to set aside funds for the holidays. Determine how much you need to pay for each aspect of your seasonal activities, and save as much as possible in a separate account from your tax refund. If additional funds are needed, automate your savings to transfer a specific dollar amount into this account each month.
  4. Pay off outstanding credit card debt. With one of the highest interest rates, credit cards are notorious for taking years to pay off. If you want to make a dent in your debt, we recommend tackling one card at a time.  Using your tax refund, see if you can eliminate smaller debts first, then with the remaining funds, begin paying down each additional credit card. By paying off the card with the least amount of debt first, you can begin to snowball your way to financial freedom!
  5. Start saving for a vacation. Whether it’s a spring break, a summer adventure, or a fall festival, it’s never too early to start saving. Once you have determined a destination, you can then create a rough budget of the expected expenses. Depending on your refund you may be able to pay for the whole trip outright, or you may need to supplement the funds with some additional monthly savings. No matter how you choose to save, we recommend keeping your vacation funds in a separate deposit account so you’re not tempted to use them throughout the year.

If you still have questions on how to best use your tax refund, our personal bankers would love to help. At Milledgeville State Bank, we can assist you in coordinating all your accounts to help make the most of your money. Stop in and see us today!

It’s the Most ‘Spenderful’ Time of the Year

 

It is difficult to control spending during the season of giving. You don't need to break your budget to give nice gifts to your loved ones.

It is difficult to control spending during the season of giving. You don’t need to break your budget to give nice gifts to your loved ones.

Are you looking forward to the holidays? Do you want the table filled of delicious food, beautiful storefronts and time with loved ones? It can be easy to get caught up in the festivities and ignore the major spending that takes place every year at this time. That is, until the major January spending aftereffect hits. If you are trying to skip the major expenses this holiday season, try some of these tips to prepare your finances now and prevent overspending later.

1. Track your spending – Know where your money is going. You may be surprised to see places that you are spending more than you ever thought.

2. Wants vs. Needs – Differentiate between what is necessary and what is not. It is also important to recognize the difference between people. Your wants may be another’s needs and vice versa.

3. Spend Wisely – It may seem obvious but try to get the most that you can for the least amount of money.

4. Have a goal – Tell yourself something like “I will only spend X dollars this week on wants”. This will challenge you to prioritize your wants and maybe find places where spending is not necessary.

5. Reward yourself – If you are motivated by the knowledge that you will have more money in your wallet around the holidays, that is your reward. If you miss something that you gave up to cut back on costs, reward yourself every once in a while. It will keep you motivated to stick with your plan.

Don’t stress over your finances during the holiday season. November is a good time to push for saving as much as you will spend to prevent spending first and paying later. Try our Christmas Club savings account that allows you to save all year long. Interest is compounded every month and credited to the account at the end of the 50th week deadline, just in time for Christmas! Contact Milledgeville State Bank at (805) 225-7171 or stop in today!

Scary Spending that is Shrinking Your Wallet

credit card and dollar close-up

Small expenditures are adding up and creating financial stress for many Americans. Don’t be one of them.


Both wealthy and working class Americans are unknowingly blowing surprising amounts of money every year in a variety of ways. Fees, indulgences, and a variety of small behaviors cause us to waste money and create bad habits. These are just a few of the most popular things that Americans are blowing their money on.

  1. Wasted food – According to the National Resources Defense Council, each American wastes about $529 each year by throwing out unwanted food.
  2. Expedited shipping – Paying the extra few dollars to get your purchases faster is a habit that can quickly add up.
  3. Tobacco – Americans spend an average of 14 percent of their income on cigarettes. That is about one-seventh of their total income! This number only increases in states where tobacco taxes are higher than average.
  4. Daily coffee trips – A survey conducted by Accounting Principals concluded that Americans who regularly buy coffee during the week spend an average of $1,092 on coffee each year.
  5. Poor health habits – Junk food like soda and candy not only lower your quality of health but they are also non-beneficial and costly. The National Retail Federation claims that Americans spend $2 million on candy during the weeks leading up to Halloween alone.
  6. ATM fees – While different bank ATM fees are unavoidable at times, it is still a good idea to know the average cost that comes with this convenience so you can prepare ahead. If you are in a crunch, many convenience stores will allow you to use a cash back option when you make a small purchase.

Do any of these expenses sound familiar?
Even the smallest cutbacks could save you money and ease your financial stress. Make it a challenge! Pick one item to try and cut back on this month. The savings might surprise you!
Milledgeville State Bank can help by offering various accounts to make your savings work for you. Start a conversation with us to find the right one for you!