There was an interesting article from ING Services the other day:
AMERICAN TAXPAYERS PLANNING TO SAVE RATHER THAN SPEND
New ING DIRECT Survey Reveals Majority of Americans Receiving a Tax Refund Intend to Use It to Pay Off Debt, Invest or Save
In the past, we really looked forward to tax refunds. They were used to do two things...first pay off any debt we had, and second, for a fun purchase or project.Yes. Two things.
Aren't you supposed to get SMARTER as you get older?
If so, how come this tax refund will go straight to bills (and one broken fence) and hardly put a dent in it????
So, we are definitely one of those couples that will be putting the whole tax refund to fix a broken thing and then on credit card bills.
According to the article:
More than 50% of Americans (65% for people under the age of 35) will be using this refund to pay basic bills, in other words, just to survive.
More than 70% of the people who receive a refund won’t be spending it, but will be using it to pay off debt or putting it towards savings.
So, we are waking up. We are focusing on eliminating debt and on savings. Without the savings, it almost impossible to stay out of debt. People are getting it.
The sad thing is the number of people who are using it to pay every day living expenses. Basic bills. Can you imagine being in that place? I am so thankful we haven't reached that point. And my heart goes out to those that have lost jobs and are living in a very scary place right now.
How about you? What are your plans for your tax refund this year? Are you doing something fun? Or are you digging out or saving?
We will either put the whole thing toward paying off our mortgage (no bailout for us) and/or saving it. We usually use our tax refund money to buy something we "need" for the house, but this year we are using it to pay towards paying off our house.
ReplyDeleteI will catch up and get ahead on some of the basic bills I am behind on from when my foot was broken. And I will use the rest to pay my Grandmother for the car she helped me buy. Nothing fun. Nothing different from years past. Just different bills this time. Mine always covers practical things.
ReplyDeleteOh, my, you are so right. That is exactly why I started my new blog, for accountability and to help us get a better handle on our financial (lack of) planning. This year our return will go toward our son's braces, which we have not saved for. Yes, it's a theme.
ReplyDeleteYep - we paid off our credit card. Thank you, Jesus!
ReplyDeleteI am so glad to found your blog! Keep up the great posts…..
ReplyDeleteWe never get a refund. But, I would put it toward the kids' college next year.
ReplyDelete