With tax season underway, you are probably looking forward to receiving your tax refund. Or you may have received a bonus at your job! If you are waiting for your tax refund or bonus, you may already be thinking of using it on your next vacation, a down payment on a vehicle or something else on your wish list. Before you spend your money immediately, think of saving it for the future. Managing your funds wisely can make a big difference. People do not always consider investing this money into the future, such as investing it in a retirement account or an emergency fund, but this is an easy way to set money aside to begin building your savings.

If you’ve received a bonus, you may have received it in one large lump sum. Receiving your bonus in one large amount may not have high taxes depending on your salary, resulting in more tax liability when you file your tax return. Bonuses that are combined with your payroll can place you at a higher tax withholding, causing the taxes on your bonus to be higher than the flat rate.

Tax refunds or bonuses are ways to contribute to your regular savings or retirement savings every year. Your tax refund or bonus can help you save for rainy days during the year, such as a flat tire, a leaky roof or a trip to the doctor. It is also a great way to save for a vacation with your family in the summer or something that you may want to purchase, such as a car or a down payment on your dream home. If you have a loan, investing this money into your loan may cut off years of payments depending on how much you invest.

To help resist the urge of spending your tax refund or bonus, place it into a separate account that will not give you easy access to those funds. An account without an ATM or debit card can help you not spend your money by making it harder to access your funds. Visiting a financial adviser can also be beneficial to see how you can maximize your funds to reduce debt, build credit or save for the future.

GECU is available to help you save more. Insured by NCUA, GECU has the tools and solutions that you need to save. Visit gecu.com today or call 915.778.9221, toll-free at 1.800.772.4328, to see how GECU can help you save and find out how easy it is to become a member.

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