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Make Your Tax Return Work for You with These 5 Brilliant Money Moves

Make Your Tax Return Work for You with These 5 Brilliant Money Moves

Your tax refund is an opportunity to solidify your financial situation. Use these 5 hacks to make the most of your tax return and give your finances a boost.

1. Build Your Emergency Fund

Consider allocating a portion of your tax return to bolster your emergency fund. Financial experts recommend having three to six months' worth of living expenses saved. This fund acts as a financial safety net, providing peace of mind in case of unexpected expenses or job loss.

2. Pay Down High-Interest Debt

Use your tax return to make extra payments on high-interest credit cards or loans, saving on long-term interest. This reduces debt, improving financial health and freeing up funds for savings or investments.

3. Build Credit with Self Lender

Use a portion of your tax return to kickstart your credit-building journey with services like Self Lender. With Self Lender, you make monthly payments into a credit builder account and at the end of the term you receive the total amount paid, plus interest, as a lump sump. It's a super easy, low-risk way to build credit and save money.

4. Boost Your Credit Score with a Secured Credit Card

Allocate a portion of your tax return to open a secured credit card. Unlike a traditional credit card, a secured card requires a cash deposit as collateral, making it an excellent tool for building or rebuilding credit. By responsibly using the card and making on-time payments, it can demonstrate your creditworthiness and open up opportunities for better credit cards and lower interest rates.

5. Embrace an Alternative Banking Solution

Consider using part of your tax return to explore alternative banking solutions like Go2Bank or Chime. By opting for these alternatives, you can potentially save on traditional banking fees, access your funds faster, and enjoy a more streamlined banking experience. By using your tax return to make the initial deposit, you can open a new account and gain access to a dynamic banking experience.

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