Starting In 2010 IRS Will Issue Tax Refunds As Savings Bonds

Saturday, March 6, 2010, 1:05 AM | Leave Comment

You read it right. Starting in 2010, the IRS will issue tax refunds in the form of savings bonds. That’s an incentive from the government for you to accept the offer or reject it. Most people historically, given a choice when they get the tax refund, will spend all of it or most of it. If you frequently get into a mental conflict with yourself to save or to spend that money, this new “benefit” will help you save if you choose to accept the offer.

Other incentives for you to save
You know, your neighborhood bank, definitely the big banks, has services that you might use them to your long-term advantage and save for the future and, as they say, the rainy day. That day might not come in your financial future but nobody can guarantee that.

Some of the features your bank offer are the following. You may take advantage of them to put you on the path of saving for the future.

  1. Automatic deposits
    Hopefully, you are already doing this. If not, contact your HR representatives and have them deposit a portion of your paycheck directly into a savings account.
  2. Automatic transfers
    You can set up a threshold in your checking account. If ever your money in that account is more than the limit, the money will be transferred automatically to your saving account.
  3. Treat savings as a bill
    You receive a bill from your utility company so why not receive a bill from yourself and pay that bill before you make payments to others.
  4. Health-care Flexible Spending Accounts (FSA)
    You might not be able to use it in your financial emergency, but it’s a great way to save subconsciously. Once you sign up with your HR, the amount is automatically saved each month for your health-care expenses.
  5. Invest using a 401(k)
    I am sure you are already taking part as your company’s benefits, it’s relatively easy process and most employers connect you with an adviser to help make investment decisions.

In a Nutshell
Now you can buy U.S. Series I Savings Bonds with your tax refund. There are many ways to save for yourself and your family. It’s just that firstly you have to change your mindset and start saving. Secondly, the technology in a variety of ways these days can help implement your saving strategy.

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