Tuesday, April 15, 2008
How Will You Spend Your Refund/Rebate?
I just got back from the post office. I had to mail my city tax, my 2008 1st quarter estimated and my son's Federal Income Tax. I always wait till the last minute, usually because I owe, but this year I'm getting a refund. That's the good news. The bad news is I've already spent it. I turned around and put it on my 2008 estimated. I read somewhere that more than two-thirds of consumers expect to receive a tax refund this year. The average refund will be be $2423. Add that to the econmic stimulus rebate and it will amount quite a bit of cash in the average american's pocket. The question is what will they do with it?
Though the chart above is a bit tongue in check, paying down debt will be the number one thing for most people. Nearly half, or 47 percent, will use their tax refund to pay down their debt. More than one-third, or 35 percent, anticipate putting some of the money into savings, while 25 percent will put the money toward every day expense. (CNNMONEY.com)
Are you getting a refund? What are you going to do with it? The Financial Planners Assocation suggests these five things.
Reduce high-interest debt
Establish an emergency fund
Put it into a retirement paln
Put it toward college
Make an extra house payment
One other thing you could do is fill up your gas tank all the way! Seriously here's my idea. When you go to the grocery store, pick up a gift card or two without knowing who you're going to give it too. Then let God direct you to just the right person He want's you to bless.