[Stephenie]

Am I the only one struggling to not spend my tax return before I get it? I e-filed last week and I can not believe how much I keep thinking ‘well, I can just put it on my credit card and pay it off when I get my return’.

I am not reducing how much comes out of my taxes.

I do not want to get laid off or get hurt/disabled and then have to pay taxes on income I earned earlier in the year.

I honestly think that is too mich of a risk for me at this point.

[Jean]

Remember, the goal with taxes is to not get a huge refund, or to have to pay a lot.

Change your withholding so you come out close to even because the government does not pay interest on the refund amount, and if you had that money, it could be invested or be used to pay down debt.

Also, consider that with the craziness happening with the DOT, and tariffs, you might want to hold off spending any of it until we see how things play out.

[Stephanie]

There’s no guarantee you will ever receive that money. Never spend money until you get it.

[Shauna]

Try to set up your taxes where you don’t get a refund. You just letting the government have you money interest free all year.

[Brian]

Nothing wrong with spending your tax return if it’s on something that you hold valuable to your life and happiness. Also as long as everything else covered in life.

No credit card debt, funded emergency savings, no other debt besides home and car, retirement, college savings for kids, stuff like that.

Putting it on your credit card and paying it off immediately is great because you get the rewards.

I always like knowing what I am getting back so I can plan summer vacations. It’s part of my budget knowing I will get a return because of what I withhold.

Sure, I could have a little more in my paycheck each month, but the financial psychology for me his having this large amount come every spring. It’s forced budgeting and allows financial freedom in life.

[Rona]

Take my advice and wait. I know it’s tempting I’m not saying don’t spend it but I know a few people who put the cart before the horse and then it got delayed!

I myself had it happen in the past although I didn’t pre spend.

The wait will be worth it.

[Bonni]

I would try to pay a bill or maybe pay my car insurance in a lump to save on finance charges. It will be the gift that keeps on giving throughout the year.

The peace of mind that comes is better than any one day high.

[Lisa]

For people stating to have less taken out, for some people what they have they will spend.

For some this is the only way to get some savings started.

[Bethany]

I am actually going to crunch numbers and change my withholding so I get less back. Habits are hard to break, spending money before you have it or spending a raise before you get it is easy to do.

Maybe instead see how you can plan to save or invest it?

I’m trying to change my habits and my thoughts around money this year.

[Lisa]

Do you have 3 months of expenses banked? Retirement plan up to date? Emergency fund for appliances etc?

Think twice.

[Bekah]

I plan for it, but do nothing until I get the money. If that’s a temptation for you, put your cards in a bowl of water in the freezer.

[Stacey]

It is ok to dream. But in the long run it is what you choose that determines whether you meet further goals. You buy in credit and it is gone as soon as it is there.

Or worse yet you spend it twice then you are in debt.

I’d sit down and make lists. Pros Cons.

Some long term goals short term goals. Choose one thing to get when the money gets there that is cheap but fun (reward).

But the bulk should go towards getting out of debt, paying ahead on bills, saving an emergency fund (3-6 months eventually) and saving for short and long term goals (vacation, car purchase, retirement).

And just so know, I’ve been telling myself this stuff for the last few months cause unexpected health care costs made last year difficult.

I do not want to hesitate to save now that I’m back at work. It is not easy but is worthwhile.

[Laura]

So, google “scarcity thinking mindset”. It’s where your immediate needs and wants overcome your ability to plan for future needs.

According to studies it’s because we spend so much time an energy thinking about how to deal with TODAY that when we get any extra money, we blow it on a “want” (think TV or cute wardrobe, latest phone) and we don’t think about our future NEEDS (cold month = higher utility expenses, sick kiddo bill, tire blow-out, car battery etc)
Ask yourself – is this a need or a want?

DH and I got away from this by 1) only using a credit card for absolute emergencies.

and setting up 2 savings accounts (which took a while due to minimum balances to avoid monthly fees – we literally kept the “savings account” in a little square can with an Easter Bunny on it that had been gifted to us by my MIL with candy in it.

We’d say – and then we need to feed the Bunny! – ps – now we keep a little emergency cash in the Bunny.

It was a BIG day when we opened the joint savings account with Bunny Funds. We’d get a little rush, LIKE spending the money, when we moved money to it.

When we had enough to split the account into 2 to avoid monthly fees (and not “just” on paper) we did – we went in person because we made it “an event” lol. LIke going out to breakfast – but it was Saturday at the bank opening a new account lol.

We allowed ourselves one “splurge” with “extra” $ –
When we get money like a tax refund – or Christmas money from the folks or birthday money – we have a “little splurge”

A large tax refund might be dinner out and a movie. Something that was a splurge for us but small – not enough we’d regret spending the money if $hit hit the fan. (Not a vacation lol)

Half of what was left went to our emergency fund.

The other half went to our goal fund (whatever we were saving for – a tv, tires, car battery, car repairs (when we finished out car
payment, we opened another account for future car-payments and still make the payment to the car account.

– so, we shifted car maintenance budgeted money into this account after we’d paid off everything)

When I was short $ and picked up a house to clean to babysitting money or donated plasma, if there was anything left after the bills – half went into the goal fund – since the emergency fund was for absolute emergencies only.

We took money out of the goal fund before we took money out of the emergency fund if that makes sense.

I’m willing to move the goal line to a ‘want” while keeping the emergency fund like a life raft. And both of those got used before credit cards.

No way are we willing to pay interest to someone when we have a savings to hit.

[Allison]

I haven’t gotten money back since I was in college and single but that’s a dangerous line of thinking.

Wait til the money hits your account and then go wild.

[Rita]

When u will get it. Budget it and then spend. Now u would get in to dept.

And if somethihg happens

[Author]

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