I got my income tax refund last week. Woohoo! 2010 taxes done and closed.
Although many PF sites will tell you that getting a tax refund means that you are giving the government an interest-free loan, I am still pleased to get a large chunk of money once a year. It’s a great way to make a large dent in… something. When I was younger, I used to spend away the money, but I (think I have) smartened up a little in recent years. In the last few years, I have used my refund towards highly recommended and PF-friendly things like my emergency fund and paying off debt. Two years ago, I owed money, so no luck there. This year, I’m putting my money into a few different things:
$1200 towards dividend purchases (63%)
$300 towards an extra payment on my condo (16%)
$300 towards my Seattle trip (16%)
$100 free spending (5%)
I’m pretty happy with that. The dividend purchase will help my early retirement plans while the extra mortgage payment will cut a little more out of the mortgage debt that the bf and I owe, thereby making it a more profitable investment.
As you can see, I took some money out for myself, in the form of a trip and spending money. I think it’s important to take a bit for yourself whenever there’s a cash windfall – otherwise you end up feeling a bit unsatisfied, even if you had made good decisions with the money. At least that’s how I feel!
I haven’t actually spent my free spending money yet. I’m “saving it” for the summer when I am in classes and have a bit less cash flow.
