BUFFALO, N.Y. (WKBW) — Monday was the deadline to file your taxes. That means so many people will be getting refunds back in the next few weeks.
Our viewers tell us their number one worry these days is retirement and making sure they have enough money saved up to retire comfortably.
Since so many people are getting that extra influx of cash soon, 7 News spoke with a financial expert and asked for quick, digestible tips on what to do with that tax return.
"There's really three things you can do," explained Jeremy Beck, who is the Founder and CEO of Buffalo Financial.
Here's what he suggests:
1. If you have any credit card debt, do your best to pay that down.
"Rates are soaring," explained Beck. "The average across the nation is 22% but there's a lot at 29% if your credit score is under 700 - that's where they're gonna bill you."
2. Set up an Emergency Fund
"We all saw Covid came so quickly, and people were losing jobs and staying home," said Beck. "And they don't have that extra money set aside. At least three months, hopefully six months that if something did happen - or you got injured, whatever it might be - you have that."
3. Save for yourself
"Let's say you have a three thousand dollar tax return," said Beck. "One thousand, thousand, thousand. Pay down some credit cards, put some in an emergency fund, and have a thousand where you start building that retirement account."
If you feel like you're already behind, Beck says it's never too late to start investing and saving for your retirement, and that every little bit helps. He laid out this example to show how even a small amount of money can really add up.
"It could be as small as $100 a month," he explained. "Think of - let's say a 35-year-old. And they're way behind, thinking - oh no - what am I going to do? If they start with $100 a month, $1200 a year - for a 30 year period of time, if it's invested in a balanced-type fund (anywhere from 7-8% a year) that's $180,000 when they retire. Not enough for retirement - but maybe they're married and their spouse is also contributing - then it's $360,000. Double social security. So looking at that - saving as early as possible - is paramount."
