Finance Friday – “Get bent TAXMAN!”

Ok–don’t panic. Today is not Tax Day. The day which has been embedded in our heads since filing our first W-4 falls on April 18th this year. Why? Well, it’s so we can  recognize Emancipation Day, the day President Lincoln signed an act releasing over three thousand enslaved persons from servitude in Washington D.C. , a precursor to the Emancipation Proclamation.

Now that you’ve had your dose of history…let’s talk tax. I’ll be gentle.

I used to subscribe to the theory that receiving a tax refund was a BAD thing. That was my money and why should the government have it? I wanted access to my funds during the year and not one lump sum of overpayment. It wasn’t until my tax refund came through for me in the clutch. Due to poor planning at the time, I needed about $900 to pay for a trip to Panama. Lo and behold, Uncle Sam kindly said “I got you” and released the money he kept in my account. With the vacation paid for, I was able to properly save for spending money while there and to this day it was the best vacation ever.

I noticed that without the looming thoughts of lingering debt back in the States PLUS the ability to feel like a “Baller” while overseas where money was no object, I thoroughly enjoyed my holiday. The plane landed in the US and all that remained were the memories.

Panamanian Paradise
Panama Canal

Me @ the Panama Canal

My refund this year is destined to go to Lowes. I want to install a storm door with ventilation screens so I can capitalize on the changing weather and cool summer breezes.

When it comes to refunds, to each her own. If you are Miss Tax – remember the commercial for Raymore and Flannigan? “Her taxes are done in January” – then by all means monitor your paycheck and taxes carefully. Read the manuals and take the classes to ensure you are being taxed at the right rate. I’ve been her. OR, do as I do now and what a number of other Miss Americans do, use your tax refund to:

  1. Enhance your emergency fund
  2. Pay down debt
  3. Add to your holiday / vacation fund
  4. Buy a pair of the most expensive shoes on your “Wants” list – yes I am advocating for this but only in this order

After your financial fetishes have been addressed, it’s fine to buy yourself a little something pretty!

Lanvin Patent Leather Wedges ($1280)

Treat yourself! Youve saved all year for it!

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One Response

  1. You seems to be an expert in this field, great post and keep up the great work, my friend recommended me your blog.

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