The lost art of saving money or Why do you have to buy so damn much??

[Irving Patrick Freleigh]

I bought my Kindle with my tax refund, and that was it. The rest went into savings or to pay bills.

[Catwoman2965]

I used to get a decent amount back, maybe 500 or 600, but I learned the hard way what having a second job can do to your taxes! I am single, and withold at 0, so nowhere lower to go. But for some reason, and everyone else I know whose had second job has had this happen, they don't withhold enough. So the first full year i worked it I owed about 800 total. Following year, I had an extra $$ amount taken out of my full time job, and now i get a few hundred back, but as long as I don't owe, I'm happy.

I have a CW who is upset that because of our second job, her refund isn't as large as it normally is. But it seems to me, no matter what you do, you still OWE taxes...its just the difference of when you have it taken out. MOre throughout the year, smaller refund, or less, but your checks are larger and you get a bigger refund.

The only time I got a huge refund was the year I lost my job, and got 6 months salary in one lump sum. But that couldn't be helped.

[Android Kaeli]

Wait....how can someone blow $5k within a week that isn't bills and the like? Even though I should know better to question on this site, it still boggles my mind. Wish I could've gotten that much money back, the whole thing would've bought a new AC.

Or, you know, something that I actually need. I took out $50 from my tax return, the rest is going towards the AC.

[ShinyGreenApple]

I might get myself a new, high quality pair of shoes for work and get my new cat spayed, but the rest is going to start a brand new savings account for me. I need to move out of my parents' house someday, and there's no time like the present.

[Merriweather]

I used to get a decent amount back, maybe 500 or 600, but I learned the hard way what having a second job can do to your taxes! .

First year after hubby retired from the Navy, we found that out. Retirement from the military doesn't mean real retirement, mid ranking enlisted retirement pay isn't even enough to pay the mortgage on our very modest house, let alone enough to live on, you definitely need a full time job. Anyway, tax was taken from his job, and from his pension, as if each were his only income. But combine the two together, and it shifts us to a higher tax rate, so we owed money, first time in our lives, and we hadn't planned for it - just never occured to us at the time.

[Solumina]

Thanks to getting married we got a fairly big refund (around $1,500), if we hadn't gotten married I would have gotten almost nothing and J would have owed, which is how I like it, more money for us throughout the year. We just kind of took it as a late wedding present from the government and did what we did with all of our other cash gifts: 1/3 is fun money, 1/3 goes straight to debt, and 1/3 goes to our joint account for bills and food.

We had a half year personal finance course offered at my high school as an elective but my parents had already taken it upon themselves to teach us about money management so I didn't really need it.

[XCashier]

I really think they need to start offering money management classes in high school because a very small percentage of people understands how to do it properly.

I've thought that for years. A high school class on budgeting and investing would be a good idea.

and I agree with the money management courses. it would have done me A LOT of good. I am terrible with money, I am just now getting the hang of it.

I admit, I was like that when I was younger. We didn't have much money, I didn't have an allowance, never had any money to have fun with. So I went a little crazy when I got my first job. A little guidance would've been a good idea.

A lot of kids have Mom and Dad buying them everything so they don't understand the value of money. In some cases, Mom and Dad don't buy them anything beyond the bare necessities, so the kids go a little nuts when they first start to get money. Either extreme is bad.

[Primer]

I'm one of the foolish people that prefers to get a largish refund. I know that the government is using my money for free, but if it were in my pocket during the year, I'd likely just spend it. By getting a chunk all at once, it's easier for me to drop it into my IRA and take the deduction next year. Small amounts are a lot harder for me to hang onto than a big chunk for some reason.

[Mr Hero]

I'm probably guilty of this. I don't spend my entire return on games, but I spent my 2009 state return on a PS3 and Super Street Fighter IV. Federal went into savings. This year my 2010 state return will be used on a 3DS.

[Sapphire Silk]

And of course, they use tax preparers that give them their refund immediately, rather than waiting for the IRS (for a fee, of course).

I've never gotten why people do that. I'm as quick as anyone to blow my cash, but I'd rather blow it on things I want than paying fees.

I'm one of the foolish people that prefers to get a largish refund. I know that the government is using my money for free, but if it were in my pocket during the year, I'd likely just spend it. By getting a chunk all at once, it's easier for me to drop it into my IRA and take the deduction next year. Small amounts are a lot harder for me to hang onto than a big chunk for some reason.

I'm with ya there, Primer. The few bucks extra I would get each pay period isn't enough to make much of a difference in my disposable cash. The big refund I often get (as I maximize my deductions) is enough to pay off a big bill, or put into my retirement accounts, or splurge on a big ticket item. And since it does not actually COST me to let the government borrow my cash, I'm inclined to let Uncle Sam do so.

[LadyAndreca]

If it weren't for my student credits, hubby and I would have owed this year. Last year's refund got spent partially on new phones, but most of it got put into savings towards the down payment on the house we thought we were going to be able to afford in a year. Unfortunately, with hours cuts on my end and pay cuts on his, it all got swallowed by my tuition. This year, I think all of it will go to tuition.

[Sonoma]

I too like knowing I'll be getting some money back. This year I'm being irresponsible, and I'm spending my refund on a 7-day Alaskan cruise. Of course, I still have money to pay the mortgage & my bills, so the cat won't lose the roof over his head. Plus, this time of year is when we also get the performance incentive through work, so I'm willing to spend a bit.

[Food Lady]

I'm one of the foolish people that prefers to get a largish refund. I know that the government is using my money for free, but if it were in my pocket during the year, I'd likely just spend it. By getting a chunk all at once, it's easier for me to drop it into my IRA and take the deduction next year. Small amounts are a lot harder for me to hang onto than a big chunk for some reason.

Me, too. And yet, my "big" refund is less than $1500. If I spend it on the couple of debts I actually can pay (bank credit line and gas card), there will be nothing left. But some of it will have to go to rent. *sigh* I wish I could get a $5000 refund so I could afford a few luxuries, like new socks, a bath rug, and a shower caddy. I'm totally serious.

[fireheart]

I go half and half with mine. I put aside a good chunk of my tax refund, then spend the rest. So for instance, if I get $800 as my tax refund, I'll put aside $400-$500 and then spend the rest.

[bainsidhe]

I used to get a decent amount back, maybe 500 or 600, but I learned the hard way what having a second job can do to your taxes!

I hear ya. This is the first year in forever that I'm not paying in to state. This is also the first year in forever that I don't have a 2nd p/t job on the side. And I'm still claiming 0 with extra taken out for both federal and state. I should get just over a grand for the first time evah! Which is nice, since I just had a $600 car repair bill. Truth is, my refund usually goes towards traveling to visit family each year, since the cost of airfare is so expensive. One of these years they need to visit me! Family always wonders why I don't visit more often, yet they refuse to listen when I explain how expensive it is. They live paycheck to paycheck, yet can't understand why I have to budget for my trips.