Monday, February 9, 2009

The Tax Refund

Me after cashing my refund. Face blanked out to protect my identity.

Like many Americans I'll be getting back a pretty good chunk of change from our friendly Federal government in the form of a tax refund. According to Wikipedia, "According to the Internal Revenue Service, 77% of tax returns filed in 2004 received a refund check, with the average refund check being $2,100." Which just so happens to be how much of a refund I'll be getting. A big part of this comes from the fact that may parents claimed me as a dependent until 2007, so I was ineligible for the $600 stimulus check of '08. But now becomes the question: what should I do with this money. The devil on my shoulder says "Private party at Silk Exotic! Woohoo!!" And the angel on the other shoulder says "Give some to charity, and put the rest into savings!" What I actually plan on doing with the money is a little in-between.
  • As I mentioned here, I did a fairly terrible job saving money last year. So I'm going to immediately take half the tax refund and put it into my savings. And not touch it. Hopefully.
  • Next I'm going to take about $700 and put it towards building a new computer. Another one of my resolutions should be checked off the list by this one. I'll probably have to pitch in some other money (I'm looking at spending around $800 total for the PC), but it won't be as large as a burden as previously thought.
  • Buy one of these. The lawn mower we inherited from the old landlord as conspicuously left out in the snow all winter, and I'd rather not buy a gas mower for such a small lawn. This looks like a good investment.
  • And the rest will go towards my trip to the Bahamas! Ric and I are heading down on Thursday the 26th to Ft. Lauderdale to visit Chad, then departing from Miami for a 3 night cruise to the Bahamas. I'm really looking forward to it, it'll be my first time taking a cruise.
So what are YOU planning on doing with your refund? Stimulating the economy? Investing in gold bullion?

EDIT: Changed picture from Scrooge McDuck to current picture.


Chad said...

Don't believe you ripped off my scroodge mcduck picture.

I'm only getting about 800 back. however, I do claim myself as a dependant. So that makes sense since they take out less to begin with.

I already spent my tax refund. GOT ALLOT OF DEBT GREG. LOTS OF IT.

Also, lemme know about that Silk party, i'd fly up for that.

Gregor said...

That's what you get when you don't blog for 2 weeks, I STEAL YO PICS.

Belle said...

I've got savings and savings for mine. I really want to hit up a music festival or two, which are pretty expensive, so some of the money will probably go toward that, and some will be saved for a trip to Florida, and some will be saved for a cruise next February, and some will be saved for spending in Paris, and some will be saved for visiting my friends out west and music festivals. I love life.

Ric said...

I already got mine back. I immediately transferred $1,000 to savings, some of which will take care of that pesky car insurance for the year.

Spent some on fancy running shoes, which will also help me avoid having monkey feet for at least the next six years.

And the rest? B-A-H-A-M-ahhhhs.

Gregor said...

There, changed it just for you Chad.

BLaZE said...

1k or so goes into my 2009 roth ira investment. 1k goes into my savings account. Then I use the other 1k for hookers and cocaine. Or one of the other luxeries of my choosing.