Tips for Tax Season: ways to stretch your funds and set yourself up for money-saving success

Tax-return season can be quite stressful, especially for employees working paycheck to paycheck. There’s a lot of uncertainty, and it’s easy to become overwhelmed by the pressure of managing your tax returns. Thankfully, modern benefit providers like ZayZoon and other financial resources can help alleviate that stress.

In this article, we explore ideas to help employees feel more empowered by their money and options.

Once you’ve filed your taxes, waited for your return, and received money back, it can feel like cause to celebrate. And it is, but there are a few things you may want to consider before throwing yourself a party.

Pro Tip: Did you know that the ZayZoon Perks Marketplace offers tax filing from Column Tax and H&R Block? Now, your team can file affordably - even for free in some cases - with easy-to-use options.

Plugging Leaks 

One of the first steps to financial freedom is stopping (or at least reducing) any money that may be bleeding out. Prioritize paying high-interest loans and overdue bills to minimize late fees and penalties.

View your tax return as a quick cash infusion. Focusing on bigger expenses may not be fun—but it will help reduce compounding interest.

Focusing on plugging these leaks will help your money go much further in the future.

Quick steps to avoid bleeding out:

• Manage/consolidate high-interest debt
• Examine your bills and eliminate unnecessary expenses
• Research rebates and incentives relevant to you and your family
• Prioritize unavoidable penalties and strategize your payments

Need a little help on how to get started? Our budgeting for beginners blog may have just the tips and tricks you need!

Creating or Improving an Emergency Fund

If you’re fortunate enough to have your debt under control, the next priority should be your emergency fund.

Adding extra padding or jump-starting an emergency fund may not feel very glamorous—but it’s a great way to help reduce future financial stress.

If you do have an emergency fund, then now is the time to give yourself a pat on the back. And extra kudos if you’re consistently able to add to it.

If you haven’t been able to start a fund, no sweat. Tax return season is a great time to do so, no matter how big or small.

And if money feels too tight for an emergency fund, it’s always a good time to start planning and find out what will work best for you in the future.

Prepaying Future Costs

If you don’t see any leaks in your finances, and you’re happy with the savings plans, let me be the first to give you a "hell yeah!" But maybe hold off on throwing that party...

Now might be a good time to consider using your tax return to pre-pay future expenses or set up automatic payments. If you’re fortunate enough to have some extra cash and the option is available, it’s never a bad idea to pre-pay future costs. It can help alleviate potential financial stress and buy yourself a little flexibility.

The ability to prepay future expenses is certainly a privilege, but if you’re able, it’s a great way to build on positive financial momentum. If you don’t have cash on hand, setting up auto-pay can save you time and maybe some future stress.

Spend on Upskilling

Let me upgrade ya!

Extra time and money can be hard to come by. It’s never too late to invest in upgrading your skills to find a new job or a better position within your company. Tax return season is a great time to consider committing to developing skills that can take you further in the workplace.

It can be a scary leap, but it may result in higher pay, better hours, and more job security.

Common skill upgrades worth looking into include certifications for your current job, software or trade training, and/or resume review/interview coaching.

Buying in Bulk and Longer-Lasting Products

Buying in bulk or investing in longer-lasting products is a luxury, but one that may be worth considering come tax-return season.

If it’ll be used and you can afford it, buying household items in bulk can save you time and money. If you use a product that experiences lots of wear or is often replaced (i.e. work boots/shoes, kids’/animal toys, kitchenware, etc.), spending extra money can help avoid repeat purchases.

Other long-lasting products worth considering:

• Reusable water bottles and coffee mugs
• Tech cases/screen protectors
• Rechargeable batteries

Employer Offered Benefits

Tax return season or not, it’s never a bad time to investigate the benefits your employer offers. Many employers offer modern benefits aimed at helping you save money, build credit, and simplify your tax returns.

ZayZoon Perks’ Instant Gift Card offering allows employees to save up to 25% on groceries, gas, and other essentials at many national retailers. Employees can also use ZZ Perks to report their rent payments and build/monitor their credit. You can also save on insurance, housing, and medical expenses by comparing prices and switching providers, all within the app.

The cherry on top? All ZayZoon Perks are available whether you’re signed up for Earned Wage Access or not.

 While reviewing your benefits, make sure you also review those that go beyond financial support. You may be able to treat yourself by topping up a partially covered benefit, like a health and wellness stipend your work covers a portion of. It's never a bad time to get a massage, acupuncture, or fitness equipment. Whoosah. 

We know tax-return season can bring on mixed emotions—some people look forward to filing their taxes, while others dread it. No matter which camp you fit into, we can all agree that feeling prepared come tax-return season is beneficial.

If you’re someone who feels anxiety levels rise as spring comes around, we hope this blog offers some relief. Money can be stressful, and filing your taxes is usually a great reminder of that.

However, it can also be a great time to reflect, plan, and feel a sense of opportunity—instead of defeat.