What I did with my income tax refund

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.

Posted in: Money

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