There are two kinds of taxpayers: 1) Those who adjust withholdings to minimize their tax refund (i.e. “free loan to the gov”) as much as possible, and 2) Those who LOVE getting tax refunds…who cares if you gave the government a free loan!!

I fall in category #2. And I’ve finally figured out why….

…my yearly tax refund is simply my version of a bailout.

That’s what I’ve done every year: pay back personal debts that otherwise would’ve taken the backburner to the rest of my goals (shame on me! seriously!), boost my savings in one fell swoop, or spend a nice chunk of change on something I would usually be mortified of spending all at once. Enough of bailouts though….

I’ve done some thinking about what I’ll be doing with my tax refund. While I didn’t come up with a definitive plan (not completely, at least) I came up with a good overall outline that I’m happy with.

Interestingly, Paranoid Asteroid came pretty close to guessing the total amount (she guessed $1242, I got $1288), and Anny fairly accurately guessed what I’d be using the money on when she said “I’m guessing some savings, some bills and some new dancing shoes and classes!” She saw right through my plans!!

To give you the “gist” of it, about 1/3 is going towards paying (personal) debt, 1/3 is going to the Emergency Fund, and 1/3 is being spent.

$1288 Starting Balance

$317 to my Checking from paying back the plane ticket ($971 left)

$71.66 to Personal Debt ($899.34 left)

$52.42 to my Mom for Costco trip last week ($846.92 left)

 (Remaining amount to be split between “Spending Money” and “Emergency Fund”)

$423 to Emergency Fund ($423.92 left)

The remainder is being spent….

 Here’s where it get tricky, because I’m still wondering if I’m going to spend my money this way….

$370 for dance costumes/accessories/etc. ($53.92 left)

and the rest I would either save it for my haircut in a few months, or use towards buying tickets for my parents and BF to see me perform.

 

So, I’ll leave it at that for now. I have some issues with how the last $400 is being spent….issues because I feel guilty spending it that way. Stay tuned for a follow-up where I’ll go into a little more detail about this stuff and how I feel about it…

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