Yeah, it's that time again. There are always two camps of people during this time of the year.
Camp 1:
These people KNOW they are getting money back, and alot of it. They usually have their taxes done by the end of the first week of February and usually have it spent within days of getting their check back. You can easily spot these people. They are going out to eat ALOT and buying large ticket items. It's a beautiful time of year for them.
Camp 2:
These people KNOW they are going to owe money. They wait until the very last minute to file and when taxes are mentioned they sigh and groan. Their life doesn't really change much, other than to be inconvenienced by the task of getting their taxes filed.
I really, really wish I was in the first group. I wish that I looked forward to the beginning of each year as a countdown to getting a lump sum of "free" money.
Unfortunately I'm not in that group. DH and I decided a a few years ago after listening to RICH DAD, POOR DAD that we were foolish to give away our money to the government thru the year. That our cash flow would better to take the most exemptions we could and have better cash flow throughout the year.
Don't get me wrong. The rest of the year we are pleased with our decision. We are very seldom tight. We can spend money any way we want. We go out to eat whenever we want. In a few short weeks we usually can save up for big ticket items we want or need. But we don't get "spending sprees".
I read an article in the paper this week that said that by getting large refunds families are missing their budgets by $300 a month - sometimes going into the hole, accumulating late fees etc, while they are overpaying their taxes by $400 a month. That by putting aside money for a big refund they are giving the government their hard earned money and allowing the government to use it as they see fit.
I agree. It's more important to me to be comfortable 12 months out of the year, not just "quick rich" for one month. So why am I so bummed that I don't get a big spending spree during 1 month of the year?
1 comment:
Thank God I don't go in the hole each month letting Uncle Sam be my savings account! I love when February comes because I then get to purchase all of those things that I usually put off buying because there are other things we need at the time! This works for us....but I agree that others do not do this wisely!
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