Refund money distribution

texastami · #1 02/02/12, 09:29 AM

Just curious to know what folks do with their return $ if they are lucky enough to get any.....

I know one couple who starts making a list in April... keeps diligent track of everything they need no matter how minute...... revises it as the end of the year draws to a close, and then become "sale" hounds checking websites and stores until the $ hits the bank in Feb to get the lowest price available... some say they don't need all that food and prep stuff... they should just SAVE IT for a rainy day... (they save a "small" portion too but use 90% for goods and equipment)

Another couple can't even TALK about a refund... he is the only one who works... so he feels he should get to say where it ALL goes... and it is usually to new toys and eating out... She has 6 kids with no food storage system in place, no extra supplies... and while her husband usually decides where it goes, she willingly goes, because she gets the new ford explorer, the new laptop, etc... (they dont' save a lick)

The third couple I know blow through money faster than I can blow my nose!! They get it and its gone in three days... All about them... making themselves feel good!! (no savings) They divide it up between the two of them and they can buy WHATEVER they want.... no questions asked.....

The final couple is an 60 yr old couple... they refuse the notion that ANYTHING can/might/will happen in the future.... stocking and prepping is too much work... they just SAVE all their money...They make great money for the two of them (he is still working and makes 70+G a year) buying 4 extra cans of chicken is considered STOCKING to her.... She feels no need to do anything... Even after major discussions with her kids, she just rolls her eyes and says "the government won't let that happen!! You are over reacting and being wasteful with your money"

So how does the refund get spent at your house??? We talk talk talk talk talk talk talk talk about it before we spend anything... complete agreement or no purchase... we compromise sometimes, we NEVER argue over it... and we try to do what is in the best interest of our ENTIRE family... not just one person...

Tell me how you do it??

Marilyn · #2 02/02/12, 09:43 AM

All of my working life, I fine-tuned withholding, etc. so that there was such a small refund, it was basically a non-issue. Now that I have remarried - and retired - things haven't changed much

fetch33 · #3 02/02/12, 09:44 AM

We will be empty-nesters this year and it is time for home repairs. Coupled with the fact that my husband finally woke up and ditched his credit card debt, we will be on track to do major repairs this year. The tax refund is going to the new roof, which will be purchased about May. We are also getting a new garage door/opener, new bed, new kitchen counters/backsplash/sink and new flooring in the half of the house where it hasn't been replaced in the last 25 years. We also are saving for a really nice 25th anniversary vacation, either to Europe or Hawaii, so we may not make it all of the way through the home repair list this year.

HilltopDaisy · #4 02/02/12, 09:54 AM

My refund always pays my property taxes, with a small amount leftover. I know I should get away from that habit but it's tough.

**Cabin Fever** · #5 02/02/12, 09:58 AM

Quote:

Originally Posted by Marilyn

All of my working life, I fine-tuned withholding, etc. so that there was such a small refund, it was basically a non-issue. Now that I have remarried - and retired - things haven't changed much

ditto! Or, even oweing a bit at the end of the year.

I feel it is ridiculous to use the gubbermint as the holder of your rainy day savings fund.

mnn2501 · #6 02/02/12, 10:02 AM

Quote:

Originally Posted by texastami

Just curious to know what folks do with their return $ if they are lucky enough to get any.....

"lucky enough"? That means with every paycheck you gave the government an interest free loan. You're not getting free money or even money from the government, you are getting back YOUR money that you overpaid during the year.

Sorry, but this is a big pet peeve of mine.

sisterpine · #7 02/02/12, 10:04 AM

I always break even or about even. However this year for some reason I am getting a refund strictly because of some education credit thing???

Horseyrider · #8 02/02/12, 10:35 AM

Quote:

Originally Posted by Cabin Fever

ditto! Or, even oweing a bit at the end of the year.

I feel it is ridiculous to use the gubbermint as the holder of your rainy day savings fund.

Tritto. (Is that a word?) DH does our taxes. I was so proud of him when he let me know that our taxes were finished, and we owed

eight bucks.

We should get a sizeable credit this year due to our new solar installation, but that'll just go in to savings. I don't need anything; and when I do, I go get it.

hillbillygal · #9 02/02/12, 10:49 AM

DH starts making a list of what needs to be done with ours early on. I don't count on anything until we have it in hand. Ours goes to paying any debt we may have acquired at the farm supply store or on the sears card, property tax, insurance, and the such. This year dh is wanting to start his own business so part of ours will have to go to paying his E&O insurance which is insanely high but we hope it will pay off in the long run. We will also make a run to Walmart or the such to pick up paper goods, cleaning supplies, and etc. that we may need throughout the year.

Smalltowngirl · #10 02/02/12, 11:08 AM

I think I'm going to blow my whole $295 refund on a new exhaust system for my 12 yr old car.

blynn · #11 02/02/12, 11:20 AM

We have been paying in every year since we got married. I don't think this year will be different, but maybe next year we will get a refund because I am not working right now.

I used to always just stick my refund into savings, invariably it would pay for something unexpected that would come up. One year I did splurge and get a computer.

pumpkinlady · #12 02/02/12, 11:24 AM

We just apply our refund to the next year so our quarterlies are less or non existent.

Lada · #13 02/02/12, 11:27 AM

We have a land payment that we make once a year, so about half our refund goes straight to that. We just have this year and next year and it will be paid off. The rest we talk about. This year, our oldest needs braces so some will go to help with that. We also try to take a vacation once a year and use some of it for that.

We don't stockpile. That's a personal choice and I wouldn't say that just because a person doesn't spend their refund on canned goods that they are "blowing" it.

I know it is not smart to take so many deductions that you end up with a big refund, but it's what works for us. Neither of us are terribly good with money and it tends to dwindle. We get the big check, immediately put it towards the things we've decided to spend it on, and then there's nothing left to leak away into oblivion. I don't think we'd save up throughout the year like we should if we got that money back every paycheck instead of all in one big lump.

Suburbanhmstedr · #14 02/02/12, 11:29 AM

Any "found money" (tax refund, work bonus, sudden windfall) in our house is always divided three ways:

1/3 for the past (paying off any debt/mortgage)
1/3 for the present - something we need or will enjoy
1/3 for the future - put into savings.

PNP Katahdins · #15 02/02/12, 11:45 AM

My small refunds always go to pay bills.

Peg

DamnearaFarm · #16 02/02/12, 11:55 AM

Bills and farm improvement.
Great idea, surburbanhmstedr.

wildcat6 · #17 02/02/12, 11:58 AM

A good accountant would advise you to not seek the large refund and adjust your w/holdings as close as possible to break even. At least that is what I advise my clients to do.

mammabooh · #18 02/02/12, 12:23 PM

Not much of a refund here either. It took several years of reducing dependents, but we finally got it right.

Melissa · #19 02/02/12, 12:29 PM

We are going to use ours to finish Cale's garage this spring. I can't wait! We really need to organize all of his tools and get the barn cleaned out. I am excited. Cale filled out his W-4 this year himself and he took no exemptions, so we are getting a good bit back. I don't mind getting a refund. Savings accounts are paying virtually no interest at this time.

Callieslamb · #20 02/02/12, 12:29 PM

We try not to get much of one. Last year, we ended up paying..and this year we're getting quite a chunk. I'm not sure why, we haven't changed anything.

We always just put it in savings.