Comments on: 10 Smart Ways to Spend Your Tax Refund Money Wisely

By: autum

autum — Tue, 22 Mar 2011 17:30:48 +0000

My husband is considering a better heating system for the house. This old house will need insulation as well since its got none in the first place. And i need a more reliable use vehicles that doesn’t cost as much a another one to fix. A big list of what to do but not a lot of money to work with.

By: Sian Owen

Sian Owen — Mon, 21 Mar 2011 22:45:17 +0000

I really believe when you get money back – - just like with a bonus – - you should always spend a portion on yourself. A small portion say 10 – 20%. That way you avoid any feelings of resentment or deprivation. Split the remainder: 50% pay down high debt and 50% for emergencies. Its best if the emergency funds are held at a an online bank with a higher rate. There are two benefits. The first is you don’t see it everyday so you don’t have it in your sights as spendable and second is the higher interest rate! If you have no debt…follow the rest of the list :)

By: Jim

Jim — Tue, 04 May 2010 13:28:09 +0000

I agree. Even though it is essentially an interest free loan to the government, how much interest are you really losing out on with the interest rates that banks pay out? I have owed money and received refunds and it is much more painful to write out that check to the government on April 15 than it is to think about the few dollars in interest I lost out on.

By: Karmella

Karmella — Tue, 13 Apr 2010 18:28:51 +0000

I understand the principle for sure, and I even agree with it – but I can live with knowing that I gave them an interest free loan and I didn’t have the miserable experience of actually writing a check. That makes me so unhappy and outs me in such a bad mood that I’ll happily make the tradeoff.

By: Mac

Mac — Tue, 13 Apr 2010 04:20:54 +0000

Sounds like money well spent to me. Being comfortable is an investment in your health. My next furniture purchase will be a new bed as the current one is giving me back pain and is already 10 years old. I thought of using my tax refund on it, but as my situation is a bit up in the air right now, I thought it be better to save all of it in case it’s needed.

By: Winston

Winston — Tue, 13 Apr 2010 03:58:18 +0000

So true!!! I am glad somebody mentioned it. Getting a tax refund from the government is not a good thing as it is your money to begin with. You let the government use your money without paying interest. What a rip-off. :)

By: Winston

Winston — Tue, 13 Apr 2010 03:55:02 +0000

Well, I didn’t pay extra money to the IRS last year. The refund that I got was from the “Make Work Pay” credit, which is a little over 100 dollars. I used half of it to get myself a comfortable chair because my old one has been literally a pain in the ass. The rest I put in Wachovia’s Way2save saving account.

By: megscole64

megscole64 — Tue, 13 Apr 2010 02:41:40 +0000

I’m GLAD that we don’t have a refund. As painful as the check is to write, I know that we were able to use our money all year without loaning it interest free to the government. It still amazes me that people think it’s “found” money. Such a waste.

By: Jeccica Simpson

Jeccica Simpson — Mon, 12 Apr 2010 22:41:20 +0000

I wish could apply my tax refund $$$ to anything on the list, but as always something happens and something comes due, hopefully someday that will change.

By: Em D.

Em D. — Mon, 12 Apr 2010 17:18:12 +0000

I never think of my refund as extra money to spend, it just goes into my savings account. For me, spending money as soon as it comes in is a good way to not have savings.

By: gina

gina — Mon, 12 Apr 2010 00:05:58 +0000

I personally do not have any refund coming back, but if I did I would be paying down my debt!

By: Atom Shock

Atom Shock — Sun, 11 Apr 2010 18:27:12 +0000

Try as I might, I adjust my withholdings every year to put more money in my paycheck and break even on taxes and not give the government an interest free loan, but I still end up getting a refund. I use it to pay my NFL season tickets which are due in March. Any left over goes into savings.

By: Mac

Mac — Sun, 11 Apr 2010 02:11:31 +0000

Not a bad idea, but paying off the mortgage quicker won’t save money for everyone. Really depends on the interest rate. Ours is now under 4% (1 year arm), so my money is better invested elsewhere than paying down the mortgage. But excellent in times of higher interest rates as it’ll save a lot of money in the long run.

By: Karmella

Karmella — Sat, 10 Apr 2010 12:51:02 +0000

Straight to ING- if CD rates were better I’d put it in one of those.

By: Claudia

Claudia — Sat, 10 Apr 2010 08:10:23 +0000

I wish I woul have money coming to me this year in a refund bu I dont. Last year, I did and used it to pay one month extra in my mortgage. I first found out that there was no prepayment penalty which there wasnt and I did this as a cushion but also as a way to reduce my overall money owed at the end of my mortgage.

By: Mac

Mac — Sat, 10 Apr 2010 03:59:21 +0000

I usually immediately transfer the money to my paltry savings account and pretend that I never received a refund. Did just that in February to help replenish the account from recently getting a new driveway.

By: avalan

avalan — Sat, 10 Apr 2010 02:03:43 +0000

If you missed out paying or filing late taxes for the previous year, it is still possible to work it out.

By: Daddy Paul

Daddy Paul — Sat, 10 Apr 2010 01:39:19 +0000

Good list. I sure like the idea of paying off high interest debt. Just think about a 20% credit card bill. Where else can you invest your money and get a 20% return?

By: Craig

Craig — Tue, 14 Apr 2009 19:29:16 +0000

I plan on finally opening up an IRA retirement account so I can get that started with, instead of buying something I really don’t need.