Crucial Skills®

A Blog by Crucial Learning

Crucial Influence

Crucial Applications: Tax Refund Tips to Jump-start Financial Savings Habits

Change Anything

According to a recent poll we conducted with money expert Loral Langemeier, over the past five years, three out of five people have failed to meet their financial goals; despite this, only 24 percent are actively working to adjust their spending and saving habits.

As a result of failing to adjust spending and saving habits to new realities, two-thirds are in financial trouble and only 6 percent are on track to save enough for retirement. However, those who created a plan which includes four or more unique behavior-change tactics were 53 percent more successful in reaching their financial goals.

Here are some tips for using your tax refund to jump-start financial savings habits:

1. Change your paradigm from prize money to possibility: Change the way you think about your tax refund. Realize it isn’t a prize, but rather money you’ve earned in the last year through hard work. Consider the possibility of adding to your savings or investing for future security.
2. Overcome ignorance: If you struggle to save, you could be lacking skills rather than motivation. If you’re unsure on what to do with your refund, read a book or see an advisor who has knowledge you lack and can help you make a safe investment.
3. Turn accomplices into friends: Don’t underestimate the power of your peers. Stay away from friends who encourage you to spend your refund and hold your spouse or partner accountable to deposit your refund based upon your mutual goals.
4. Get a coach or mentor: Coaches—such as a financial advisor or friendly cheerleader—are crucial to behavior change success. Research shows people with a half dozen active friends who play the role of coach or mentor in encouraging saving are almost 40 percent more likely to succeed than those with less than a half dozen friends.
5. Reap a reward: Deposit 90 percent of your tax refund in your savings account and reward yourself by spending the remaining 10 percent on a low-budget treat or family outing.
6. Take advantage of technology: Cut out the temptation to cash a tax refund by opting for a direct deposit option that goes directly to your savings account.

For more tips on closing the financial gap and changing your spending or saving behavior, join Joseph and Loral in a paid web seminar on Tuesday, May 15.

Develop Your Crucial Skills

Image for

What's Your Style Under Stress?

Discover your dialogue strengths and weaknesses with this short assessment.

Take Assessment

Image for

Subscribe Now

Subscribe to the newsletter and get our best insights and tips every Wednesday.


Image for

Ask a Question

From stubborn habits to difficult people to monumental changes, we can help.

Ask a Question

1 thought

  1. Geoff Granfield

    Several taxpayers realize its commonly used technique for preparers to exaggerate their tax deductions and credits in an attempt to get greater returns. While this may seem like a risk-free exaggeration, the government doesn’t seem to view it that way and categorizes this as tax theft. This particular filing is thought to be thieving from the federal government, additionally; the IRS may perhaps consider the offense significant enough to bring to trial. Do not allow tax preparers convince you to ultimately go with this kind of tax filing. Do not forget, they won’t have to pay for it, you will certainly. Read additional info on this in this article:

Leave a Reply

Get your copies
The ideas and insights expressed on Crucial Skills hail from five New York Times bestsellers.


Take advantage of our free, award-winning newsletter—delivered straight to your inbox