Jose and I finally did our taxes today at Casa Castillo. I didn't want to put it off until the last minute, but I was in no rush to do them either because I wasn't expecting anything back. Jose started being paid on a 1099 in October, where they don't take out any taxes. We've been setting aside 25% of his check for taxes, which amounts to a big chunk of change. We walked out with a return which was a nice surprise.
Jose and I often differ on finances. Thanks to my mother and grandparents I'm stronger believer in saving. I had a personal finance class in high school where the teacher told us you should always pay yourself first, meaning setting aside 10% of your check as savings. I've been doing it ever since, so about 7 years. I've recently started doing 15%. It's so exciting to have so much money saved, plus a little return. Jose stared listing off all of the things we could buy, and I just cringed because I don't want to spend it. LOL. I guess we have to find a happy medium. I agree that we've worked hard for our money and deserve to buy ourselves some thing nice, but not blow it all.
We were laughing about how when you're younger and you get a $1,000 return you think that it's a lot of money, but now it doesn't seem to go all that far. My opinion on a tax return is you should first use it to pay for things that are pressing and need to be taken care of. Next, you should probably pay back anyone who has done you a favor, because keeping that good credit is always helpful if you're in a bind and need to borrow again. Then, pay off some or all of your debt. After the important stuff is taken care of go ahead and spend it on a want. The number one thing I've been wanting is to finish up the outside of our house, which includes gutters and soffit. We've put it off long enough and it is necessary to maintain our home. It will improve the appearance and hopefully help with the basement flooding.
What are you opinions on tax returns? Anything fun you plan on buying?
Jose and I often differ on finances. Thanks to my mother and grandparents I'm stronger believer in saving. I had a personal finance class in high school where the teacher told us you should always pay yourself first, meaning setting aside 10% of your check as savings. I've been doing it ever since, so about 7 years. I've recently started doing 15%. It's so exciting to have so much money saved, plus a little return. Jose stared listing off all of the things we could buy, and I just cringed because I don't want to spend it. LOL. I guess we have to find a happy medium. I agree that we've worked hard for our money and deserve to buy ourselves some thing nice, but not blow it all.
We were laughing about how when you're younger and you get a $1,000 return you think that it's a lot of money, but now it doesn't seem to go all that far. My opinion on a tax return is you should first use it to pay for things that are pressing and need to be taken care of. Next, you should probably pay back anyone who has done you a favor, because keeping that good credit is always helpful if you're in a bind and need to borrow again. Then, pay off some or all of your debt. After the important stuff is taken care of go ahead and spend it on a want. The number one thing I've been wanting is to finish up the outside of our house, which includes gutters and soffit. We've put it off long enough and it is necessary to maintain our home. It will improve the appearance and hopefully help with the basement flooding.
What are you opinions on tax returns? Anything fun you plan on buying?
We gotta get ours sent in! We're expecting about $500 back, and you know what every penny is going towards? My MPC grad school fund, baby!
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