The 2×2 System is where you set aside two hours on the calendar two times a month to complete a predetermined financial task. This modest but consistent effort can help you sustain financial health and build wealth in bite-sized chunks. To view February’s blog covering tracking your spending and setting savings goals, click here. We hope you find this month’s information on creating a spending and savings plan and taxes beneficial.
March Session 1: Complete a spending and savings plan.
You probably know it as a budget. If that’s your preferred nomenclature, go with that. But the B-word can feel restrictive, like being on a diet. Thinking of it as a “spending and savings plan” helps you keep the focus on using your money for the things that matter most to you.
Tip: When most people fill out a budget sheet, they enter their expenses first, then dedicate any remaining money to their big-picture goals. Thinking of your goals as essential expenses instead and adjusting your other expenses around them can go a long way toward achieving your aspirations sooner. A simple way to help you achieve your savings goal is to open a savings account. Our Online Savings account is a safe place to put your money, and you’ll earn 3.50% APY* with Direct Deposit (2.00% APY without Direct Deposit). There are no minimum deposit or maintenance fees to nibble away at your earnings.
March Session 2: Do your taxes.
If you plan on working with a tax pro this year, use this session to gather the information you’ll need to submit. Utilizing an online filing service instead can make sense if your situation is relatively straightforward. However, if you fill out your taxes on paper and make the calculations yourself, you’ll likely need to allow for more time.
If the results of your filing don’t come out as positively as you’d hoped, this is also an excellent time to review your withholding information for a better outcome next year.
Tip: If preparing for this year’s tax filing feels like counting sand pebbles on the beach, consider using part of your time in this session to create an organizational system for your important paperwork. Creating a centralized physical or digital location for all your important documents can make the tax process much less stressful. If you need help doing your taxes and want to save money, we’ve got your back. Credit Union Members can save 20% on TurboTax federal products.** Or, go with H&R Block to save up to $25 on in-office tax prep services.† Plus, if you’re a Credit Union Member and use either of these services by March 15, 2025, you can enter the “Tax Time Sweepstakes” for a chance at winning $10,000!‡
Final thoughts.
The sooner you create a spending and savings plan, the sooner you’ll know where your money is going. And how close you are to achieving your financial goals. Don’t delay, if you don’t have a plan, commit to getting it done by putting a note in your calendar now. Another thing that can’t wait is taxes. April 15, 2025, is just around the corner. Start gathering the paperwork and get your taxes done now. The sooner you do, the sooner you can file and get your refund if you’re owed one. You also get the added peace of mind of knowing they’re done! And you avoid any penalties that go with not filing on time.
This article was developed in partnership with our friends at Balance Pro.
*APY = Annual Percentage Yield. APY is the annualized rate based on a compounding period of one year. When the deposited money earns dividends and the accumulated dividends starts earning dividends as well, we are talking about compounding. Fees could reduce the earnings on an account. All yields except Certificate yields are subject to change retroactively to the beginning of the month.
Rate bonus is for a minimum of $1,000 monthly ACH Direct Deposit or Agent Net Check into a Farmers Insurance Federal Credit Union Checking Account. Rates are subject to change at any time. No branch or call center access with this account.
†The national average for this type of account is 0.42% APY, based on rates published in the FDIC Monthly National Rates and Rate Caps accurate as of 12/16/2024.
**TurboTax Offer: Visit http://turbotax.intuit.com/lp/yoy/guarantees.jsp for TurboTax product guarantees and other important information. Limited time offer for TurboTax 2024. Discount applies to TurboTax federal products only. Actual prices are determined at the time of print or e-file and are subject to change without notice. Intuit, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries.
†H&R Block Offer: Void if sold, purchased, or transferred and where prohibited. No cash value valid at participating U.S. offices only. A new client is an individual who did not use H&R Block or Block Advisors office services to prepare their 2023 tax return. Discount valid only with or for preparation of an original 2024 personal income tax return. Coupon must be presented prior to completion of initial tax interview. Discount may not be combined with any other offer or promotion. Expires October 15, 2025. OBTP# 13696-BR ®2024 HRB Tax Group, Inc. All tax situations are different. Not everyone gets a refund. See hrblock.com/guarantees for complete details.
‡NO PURCHASE NECESSARY. Legal residents of the 50 United States (D.C.) 16 years or older who are members or employees of a U.S. credit union. Ends 4/15/25. To enter and for Official Rules, including odds and prize descriptions, visit https://taxservices.lovemycreditunion.org. Void where prohibited.
