I got my Federal tax refund today! I just wrote about how excited I was to be getting it and it’s finally here. And now that it’s sitting in my bank account, I finally feel like I can talk about it. For some reason, I feel like talking about it before hand will jinx it and it’ll turn out that I made a whole bunch of mistakes and now I owe penalties and fees and…well you get it.
So here it is.
My Federal tax refund was $6,374. It’s definitely a large amount – and I have about half of that expected from State in the future. I have been getting large refunds since I started working and I just assumed it was because I paid a lot in taxes. While that idea is correct, it wasn’t until I started reading personal finance blogs that I realized I should be increasing my allowances so I get more every paycheck instead of giving the government an interest-free loan.
Last week, I increased my allowances for both Federal and State so we’ll see what that equals to in terms of dollars on Friday’s paycheck. In the meantime, here’s what I decided to do with this portion of my refund.
$100 – Roth IRA fund. It’s not much but like I mentioned, I’m just trying to build this up slowly.
$274 – Shopping fund. I don’t have a specific “shopping” savings account so I put this into my snowboarding fund since that’s the closest thing I have to a fun-fund. I haven’t been clothes shopping in awhile and I really need new jeans and new workout clothes so that’s what this money will be going towards.
$6000 – Emergency fund. There’s the majority of it! Thanks again to all the PF bloggers that drilled the point home that an emergency fund is really important. As you can see, I currently only have $744 in there so this will really help me to feel more secure. I plan on putting the majority of my state refund in here as well.
In a matter of minutes, before the bank was even done processing the refund, I had “spent” it. I’m happy though because I spent it all in my savings and to me, that is a great feeling.
If you got one, have you spent your refund yet? If you didn’t get a refund, what would you have done if you had?