Tuesday, February 18, 2014

How We're Spending Our Taxes

After much hemming and hawing, calculating and recalculating we've decided on how to spend our tax returns. 

We got a LARGE amount back this year (more than I expected), but I don't know how my husband feels about me publishing the actual number on the internet. So, I am going to break down how we're spending the money by percentages, rather than dollar amounts.

Student Loan Payment: 41%
Savings: 36%
Roth IRA: 11%
Baby Furniture: 9%
Car Repairs: 3%

I'm happy with this breakdown. It beefs up our emergency fund before the baby comes (getting it to almost four months expenses), makes a big dent in our debt (should be able to pay off loan number one in April!), has us actually putting a little something into our retirement (which I suspended once we went to one income-I have a pension), and let's me buy baby furniture without stressing about how to budget for it.

Our California refund already came in, and our federal should be here by Wednesday! Can't wait to move forward on these goals!

How are you spending your tax returns?

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