I’ve yet to file my 2018 taxes and the majority of folks I know have already spent their returns. I’ve asked around and found common trends as to where the money goes.
- Pay off debt. (I’d like this option if only the person wouldn’t continue the same habits and accumulate enough debt for next years return.)
- Down payment on a new car. (Down payments are a good way to save money up front. An even better way is to pay for your cars without financing.) Usually after explaining why it’s a better option I hear typical objections describing how such a purchase is impossible in a pay check to pay check way of life. Start out small, maybe get a nice Huffy bicycle and use the money saved in gas to put towards something with a motor.
- Shopping sprees! Now I don’t hate on folks who choose this option. In the past I’ve been this type of person, caring about today rather than a year from now.
- Letting others spend it. You work all year and pay into the government just like anyone else. Don’t hand over money to your spouse or significant other just because they drained their account before you.
- Partying. Money tends to disappear faster when you’re drunk. So, if you’ve ever asked yourself how people who receive the same type of pay you do are able to go out every weekend and rack up bar tabs, you’re not alone. If you pay attention you’ll notice the pattern each pay period. These folks are the ones who quickly run out of money two to three days after the funds hit the account. The pattern continues all year and exponentially worse as the amount increases, like a tax return. 😉