There has been years where our whole tax refund was used as a bail out. We were so far behind in bills that we needed that tax refund to get our heads above water. Times were hard.
This year we are floating on top of the water. We can take the income tax refund money to treat ourselves. Well, not all of it. We have allocated the refund money into three areas.
- Treat Ourself
- Donate
- Save
Treat Ourself – When it comes to shopping, paying bills or making any financial decision, it is best to be relaxed. Tension will blur the facts and cause anyone to react on emotion. That is why we chose to take a portion to treat ourselves.
My feel good item was something simple. It was 10 pair of black socks. There is nothing more frustrating than reaching into one’s sock drawer where there are no mates, and almost every sock had a hole in it. All my old mismatched socks were put in a plastic bag and donate. Now I have 10 pair that matching sox’s.
Donate – I know, I cannot help everyone in Haiti, or employ all the unemployed people in the United States, but I can make a small difference by donating to a known charity that has a proven track record. These are organizations like the Red Cross, Idaho Youth Ranch, and local church.
Save – Now that I have fed my selfish and unselfish desires, we put a portion of our tax refund into savings. Putting some money away for a rainy day will definitely make life a little easier during times of sickness or unemployment, in addition to adding a level of security to every member of the family.
I thought it was interesting that on It Is Your Money a survey from Met Life 2009 says that about half of us have less than one months of expenses in savings. In reality we should have 3 to 6 months in the bank. I think it there should be a savings account with at least 6 months to one years of basic bills, in it.
If you have not done your state or federal income tax, you may want to read. “Doing Taxes“
thanks