I used mine to save for my first house. I am only about 60% of the way there for my down payment, but saving the tax return has definitely helped me get there!

That sounds like a great plan Cents.

I treat all extra income, windfalls, surprise monetary gifts the same way. 10% for me to splurge with, and the rest either into long term savings or saved up for something essential that means I can avoid unnecessary borrowing. The latter would cover something like replacing the car.

Unfortunately, my husband's ex-wife gets our tax return, so it's been a very long time since I've had the luxury of getting money back once a year. I know I'm not the only person in the country in this situation, but I'm the only person I know going through it and it drives me crazy. That clause of their divorce agreement expires in about five years at which point I will not save or pay off my mortgage or do anything responsible - I will go to Bora Bora to celebrate!

I'm just hoping to get a refund this year. I'm almost afraid to do my taxes. If I do get a refund I will put it in my savings account. I spent a little too much last year on vacations. I need to beef up the savings a bit.

Great plan! A one year Emergency Fund and a quicker pay down on your Mortgage is really a move that leaves you in a better place for the future and the unexpected.

For the past two years, I have taken one-third of my refund to pay on the mortgage principal and then the remainder goes in savings. I intend to continue that until my emergency fund is an entire year of living expenses, then I will likely put all of it on the mortgage. The faster that is gone, the better I like it.

It's almost that time of the year again and this year I am ready for it. My husband and I have a five-year plan in place that takes our tax return and pays off some of our debt. We want to be able to move some place warm, debt-free when our children finish school.

I'm saving my tax returns money this year. However, not getting back nearly as much as I did last year. The money will be a nice addition to my savings.


I hope everyone else is or will be enjoying their money...

Joeyman, I admire your desire to become debt-free but that might not be the smartest thing to do nowadays. With high unemployment rates, you never know what's going to happen tomorrow so therefore, keep the money in your bank account. Credit card companies are trying very hard to convince consumers to pay down their balances by adding incentives to sweeten the deal.

I agree with you Hjm, but my situation is nice. I'm living with my parents and have expenses of about $500/month. My income is about $2,600/month. I plan on moving out in about 2-3 months... The thing is with my private student loan, the interest rate is 13.25%. By looking back now, I was rushed by my school to present financing. I regret it terribly. But, I have the opportunity to pay it off. I'll still have minimal federal loans (with low interests rates) with a payment of only $50 (five year period). By paying off the loan; I'll have more money per month living on my own later. Also my job is secure, I work in health-care at a hospital. I actually get great overtime opportunities with double time (but I like my days off, lol). Thanks for the responses everyone!

Joeyman, I admire your desire to become debt-free but that might not be the smartest thing to do nowadays. With high unemployment rates, you never know what's going to happen tomorrow so therefore, keep the money in your bank account. Credit card companies are trying very hard to convince consumers to pay down their balances by adding incentives to sweeten the deal.

joeyman - you are making very serious progress in your financial world. Breathe... WOW, I was able to work two to three part-time jobs and had the GI Bill so I could afford to attend college. The most I ever borrowed was $125. Today... GADS!!! Nice work. You can be very happy with yourself.

I plan on paying off my student loans, although the tax returns won't cover all of it I can cover the rest with savings. Woot I will be debt free on March 5th!

CONGRATULATIONS! I bet it would be one of your happiest days.

putting the money in the bank

I plan on paying off my student loans, although the tax returns won't cover all of it I can cover the rest with savings. Woot I will be debt free on March 5th!

congratulations:white-flag:

All - The state universities in Minnesota are cutting programs by 6% to 10%, due inpart to their inability to raise tuition which is already on the high end for a state run facility and the State of Minnesota's lack of incoming tax revenue. The academic side of things has been untouched for 30+ years but now a reduction in "majors" and "programs" is being worked through the system. One university noticed 82+ professor's that their jobs would be eliminated over the next two years. The ivory tower is going to find the real world. Internally, a professor and staff member told me they need a good shake up just to remind them what all the rest of us live with...! Well they are going to get one now. Tax revenues in all but two states (Montana & North Dakota) are bad news and serious reductions in service will be coming over the next two years (read this in the last week Wall Street Journal & USA Today). People need jobs to earn money to spend and "baby boomers" are retiring as a group and will not be serious spenders in the future. Gen "X" and Gen "Y" the ball will be in your court! The state university system believes the troubled revenue flow will run into the 2012-2013 academic years. Not making me very happy.