KNOXVILLE, Tenn. (WATE) — Lina Kornmeyer Evans a Market Executive at Bank of America Knoxville knows just how important investing in yourself and your future is, and she is teaching others to do just that.
April 15 is Tax Day, and now that we have those taxes filed it’s time to take a look at the best ways to successfully maximize or invest your refunds.
Lina has significant advice for women that are looking to invest in their future. Learn more with her visit to Living East Tennessee.
Q: If you receive a tax return refund, it’s easy to mindlessly spend your return since it
feels like “extra money”. Instead of spending, what are some ways people
can implement some smart savings and investment strategies to watch their money grow?
– Consider using your refund to invest in yourself. According to a Bank of America survey, Gen Z approaches investing with a “get rich” mindset. Instead of putting all your return into a savings account, consider setting aside a portion to invest in a new business venture to help drive an additional income stream. This could mean putting money towards the yoga classes you need to take to become an instructor, getting your cosmetics license, or a real estate certificate. Investing in your future self is a safe and guaranteed investment.
Q: Speaking of the future, what are other some ways we can invest in ourselves?
– Invest your refund into a traditional or Roth IRA. This can be a great investment account
option to help you prepare for your retirement. The earlier you get started on your traditional or Roth IRA accounts, the more time your money will have to grow, setting you up for financial success when it comes time to retire.
Q: It’s also easy when we see our tax return to think of ways you could spend it now. What
about using this refund as “fun money?”
-Millennials are more likely to say investing is a “grown-up thing to do” (according to a
Bank of America survey), but that doesn’t mean you can’t have fun while being
responsible! While it’s important to be mindful of how to spend your tax refund, you can also
consider investing a portion of your refund towards projects and plans that will nourish
your mind and body. For example, use a portion of your refund for the trip to Europe you’ve been wanting to take, or make the home improvements you need to your home. Even taking a spa day or doing a staycation can be considered a responsible investment
because prioritizing your current self is important too.
Q: What about those of us who are looking to save? What incentive is there to save and get
ahead for the year?
– You will never go wrong with saving! To get started, put your refund toward starting or adding to an emergency fund. It is recommended to save anywhere from three months to one year’s worth of living expenses – or whatever you can comfortably manage – to act as a financial cushion for life’s unexpected events. A savvy way to use your tax return can be making a significant contribution to build up these savings. Then, continue growing your emergency fund over time with regular contributions.
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Source: wate.com
