Comments on: How To Spend My Tax Refund? C.L. Haddon Answered http://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/ Debt Credit & Personal Finance | Bible Help Wed, 08 Sep 2010 06:02:49 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: kenyantykoonhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-8004 kenyantykoon Wed, 24 Feb 2010 15:39:26 +0000 http://www.debtfreeadventure.com/?p=5329#comment-8004 i vote to pay up the debt. one sleeps easier knowing that you are not in someone else's pockets especially if that someone is a big faceless heartless corporation i vote to pay up the debt. one sleeps easier knowing that you are not in someone else’s pockets especially if that someone is a big faceless heartless corporation

]]> By: Sunday Morning Clicks - Tax Return Edition | DeliverAwayDebt.comhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7909 Sunday Morning Clicks - Tax Return Edition | DeliverAwayDebt.com Sun, 21 Feb 2010 06:46:37 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7909 [...] from Debt Free Adventure answers a reader’s question How to Spend My Tax Return. This continues to demonstrate the inspiring interaction Matt has with his readers. We can all [...] [...] from Debt Free Adventure answers a reader’s question How to Spend My Tax Return. This continues to demonstrate the inspiring interaction Matt has with his readers. We can all [...]

]]> By: Olivia aka the frugal bohemianhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7888 Olivia aka the frugal bohemian Fri, 19 Feb 2010 22:19:50 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7888 Just some thoughts, I might be reading into this, but I'm thinking of a retired freind of mine in similar straights. It depends on what other resources CF Haddon has. If CF has a normal social security check, it isn't much. (And SS recepients got no cost of living adjustment this year even though prices have gone up.) CF doesn't mention a pension. The side job isn't adequate to cover expenses either that's why she's in the hole. Let's assume she's already pared down expenses. The $1000 will not be enough to do much of anything. Is she on top of her credit cards (able to pay the minimums)? If not she should knock them down enough so that she can cover them with what she brings in, otherwise the interest will do her in. The option of bringing in more cash is the other side of it. Can she do something outside the box a bit? Does she own a home or can she let out a room? Does she own a car? Is there a way of making these assets work for her? Can she get a roomate? Can she do a side job delivering phone books or census work? My friend ended up letting out a room to another lady who comes to town 2-3 times a week and getting a small secretarial job she could do at home on her computer. It's enough for her to not worry about how to pay for food and property taxes. Just some thoughts, I might be reading into this, but I’m thinking of a retired freind of mine in similar straights. It depends on what other resources CF Haddon has. If CF has a normal social security check, it isn’t much. (And SS recepients got no cost of living adjustment this year even though prices have gone up.) CF doesn’t mention a pension. The side job isn’t adequate to cover expenses either that’s why she’s in the hole. Let’s assume she’s already pared down expenses. The $1000 will not be enough to do much of anything. Is she on top of her credit cards (able to pay the minimums)? If not she should knock them down enough so that she can cover them with what she brings in, otherwise the interest will do her in. The option of bringing in more cash is the other side of it. Can she do something outside the box a bit? Does she own a home or can she let out a room? Does she own a car? Is there a way of making these assets work for her? Can she get a roomate? Can she do a side job delivering phone books or census work? My friend ended up letting out a room to another lady who comes to town 2-3 times a week and getting a small secretarial job she could do at home on her computer. It’s enough for her to not worry about how to pay for food and property taxes.

]]> By: craighttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7883 craig Fri, 19 Feb 2010 17:42:21 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7883 I am joining a few sports leagues in the spring that I will be putting that money towards. I am joining a few sports leagues in the spring that I will be putting that money towards.

]]> By: Robert Espehttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7877 Robert Espe Fri, 19 Feb 2010 15:39:33 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7877 Solid advice, now to prevent a repeat situation:She mentions a series of "one time events": "medical co-pays, prescription co-pays, auto repairs, etc."Although these aren't paid monthly, don't think of them as surprises. Larry Burkett used to say that every month is an "unusual month". This month medical co-pay, next month the car... you get the idea.The key is to set aside money for them ahead of time. Save at least $1000 over the course of the year for auto maintenance, no matter how "new" your car is. Your insurance probably has a deductible/out of pocket max for the year. You should keep both in cash, since that is the amount you could spend this year. Solid advice, now to prevent a repeat situation:

She mentions a series of “one time events”: “medical co-pays, prescription co-pays, auto repairs, etc.”

Although these aren’t paid monthly, don’t think of them as surprises. Larry Burkett used to say that every month is an “unusual month”. This month medical co-pay, next month the car… you get the idea.

The key is to set aside money for them ahead of time. Save at least $1000 over the course of the year for auto maintenance, no matter how “new” your car is. Your insurance probably has a deductible/out of pocket max for the year. You should keep both in cash, since that is the amount you could spend this year.

]]> By: Lakita (PFJourney)http://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7876 Lakita (PFJourney) Fri, 19 Feb 2010 14:15:19 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7876 Great advice Matt! I would add that CL save the money somewhere that is not easily accessible. I was just discussing somewhere else that one of the reasons I like ING Direct for savings is because your money is "detached" from your everyday checking account.I don't know CL's saving or spending habits, but saving money is something that has to be learned and then becomes a habit. If someone is not used to saving it may be frivolously spent (I'm speaking from past experience!) So save it somewhere it is most likely to stay.Also, get that Sears paid off ASAP! That is the lowest balance and highest interest so no matter where you fall in debt payoff strategy I think near everyone would agree that has GOT to GO!Assuming $20 minimum payments, it would take you 4 years to pay off at the current 22% interest rate and cost an additional $318.52 in interest (according to CNN's debt reduction planner) Great advice Matt! I would add that CL save the money somewhere that is not easily accessible. I was just discussing somewhere else that one of the reasons I like ING Direct for savings is because your money is “detached” from your everyday checking account.

I don’t know CL’s saving or spending habits, but saving money is something that has to be learned and then becomes a habit. If someone is not used to saving it may be frivolously spent (I’m speaking from past experience!) So save it somewhere it is most likely to stay.

Also, get that Sears paid off ASAP! That is the lowest balance and highest interest so no matter where you fall in debt payoff strategy I think near everyone would agree that has GOT to GO!

Assuming $20 minimum payments, it would take you 4 years to pay off at the current 22% interest rate and cost an additional $318.52 in interest (according to CNN’s debt reduction planner)

]]> By: Anthonyhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7871 Anthony Fri, 19 Feb 2010 13:25:57 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7871 Yes with the emergency fund. That is the best idea!As for the debt, I would try to consolidate by using Lending Club to see if you could get a better rate. Yes with the emergency fund. That is the best idea!

As for the debt, I would try to consolidate by using Lending Club to see if you could get a better rate.

]]> By: Matt Jabshttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7862 Matt Jabs Fri, 19 Feb 2010 06:20:42 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7862 Solid advice... thank you for adding this. Solid advice… thank you for adding this.

]]> By: Matt Jabshttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7861 Matt Jabs Fri, 19 Feb 2010 06:20:18 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7861 Precisely why I think covering future emergencies to avoid future credit card debt should be her 1st priority Precisely why I think covering future emergencies to avoid future credit card debt should be her 1st priority

]]> By: Matt Jabshttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7860 Matt Jabs Fri, 19 Feb 2010 06:19:29 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7860 Ha ha... if only there were no debt... ;-) Ha ha… if only there were no debt… ;-)

]]> By: Keith Morrishttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7858 Keith Morris Fri, 19 Feb 2010 03:20:47 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7858 Go shopping!Er, I mean, emergency fund. ;-) Go shopping!

Er, I mean, emergency fund. ;-)

]]> By: kick debt offhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7855 kick debt off Fri, 19 Feb 2010 03:00:34 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7855 Great advice Matt! I would say YES save it into an emmergency fund. Everything can start becoming an emmergecy when you do not have this fund to fall back on. Great advice Matt!
I would say YES save it into an emmergency fund. Everything can start becoming an emmergecy when you do not have this fund to fall back on.

]]> By: FinancialBondage.orghttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7854 FinancialBondage.org Fri, 19 Feb 2010 02:43:44 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7854 My answer was going to be: why do you have to spend it? Save it.Also, adjust your W4 form so you get only $100 or less back next year. You can use that money during the year, and not let the govt borrow it all year long interest free. Put that money back into your budget during the year.http://www.paycheckcity.com/w4/w4instruction.asp My answer was going to be: why do you have to spend it? Save it.

Also, adjust your W4 form so you get only $100 or less back next year. You can use that money during the year, and not let the govt borrow it all year long interest free. Put that money back into your budget during the year.

http://www.paycheckcity.com/w4/w4instruction.asp

]]> By: Matt Jabshttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7853 Matt Jabs Fri, 19 Feb 2010 01:01:55 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7853 That is a great idea Rebekah, LC is about the best I option I know of for solid return on investment right now.Because the returns will be the same regardless of how much you start with, start with whatever you can... there are no minimums - in fact think you can sign up as an investor without funding the account at all. I only have like $300 in mine right now, but I'm earning 11.47% on it!<a href="http://www.DebtFreeAdventure.com/go/lci.php" rel="nofollow">Open your account here</a> now and then just fund it when you tax return comes in. That is a great idea Rebekah, LC is about the best I option I know of for solid return on investment right now.

Because the returns will be the same regardless of how much you start with, start with whatever you can… there are no minimums – in fact think you can sign up as an investor without funding the account at all. I only have like $300 in mine right now, but I’m earning 11.47% on it!

Open your account here now and then just fund it when you tax return comes in.

]]> By: Matt Jabshttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7852 Matt Jabs Fri, 19 Feb 2010 00:59:30 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7852 That is definitely another solid option Ann. The reason I say stash the entire $1,000 now is because of the frequency of CL's "surprise expenses" related to co-pays, etc. It sounds like she has a lot of them and I'm afraid if her EF isn't larger that she would blow through $350 too fast and have to revert to credit cards for emergencies again. That is definitely another solid option Ann. The reason I say stash the entire $1,000 now is because of the frequency of CL’s “surprise expenses” related to co-pays, etc. It sounds like she has a lot of them and I’m afraid if her EF isn’t larger that she would blow through $350 too fast and have to revert to credit cards for emergencies again.

]]> By: Annhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7848 Ann Fri, 19 Feb 2010 00:11:38 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7848 I agree that an emergency fund is priority. But I think, if it was me, I would consider paying off the Sears charge and then using the balance to start an emergency fund. Having one debt paid in full would make me feel a little bit of the weight was off my shoulders and having started an ER would help me to breathe a little easier. Paying off one debt would increase her cash flow & she could consider taking the amount she was paying to Sears and doing the 75/25 split you use (which I think is a great idea). I agree that an emergency fund is priority. But I think, if it was me, I would consider paying off the Sears charge and then using the balance to start an emergency fund. Having one debt paid in full would make me feel a little bit of the weight was off my shoulders and having started an ER would help me to breathe a little easier. Paying off one debt would increase her cash flow & she could consider taking the amount she was paying to Sears and doing the 75/25 split you use (which I think is a great idea).

]]> By: Rebekahhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7847 Rebekah Thu, 18 Feb 2010 23:39:06 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7847 I'm considering using some of my income tax return to become an investor in a lending club. I would like to get the largest return I can on my little bit of "seed" money. What is the minimum investment amount that would make that a worthwhile option? Do you have any other suggestions for ways to "grow" your money? Thank you! I’m considering using some of my income tax return to become an investor in a lending club. I would like to get the largest return I can on my little bit of “seed” money. What is the minimum investment amount that would make that a worthwhile option? Do you have any other suggestions for ways to “grow” your money? Thank you!

]]> By: Mrs. Moneyhttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7846 Mrs. Money Thu, 18 Feb 2010 22:36:26 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7846 I think you gave great advice, Matt. :) I think you gave great advice, Matt. :)

]]> By: Matt Jabshttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7844 Matt Jabs Thu, 18 Feb 2010 22:29:37 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7844 Ah geez... corrected. Thanks! Ah geez… corrected. Thanks!

]]> By: Melissahttp://www.debtfreeadventure.com/how-to-spend-my-tax-return-c-l-haddon-answered/#comment-7842 Melissa Thu, 18 Feb 2010 22:24:12 +0000 http://www.debtfreeadventure.com/?p=5329#comment-7842 **coughcough** reFUND **coughcough** not reTURN **coughcough** **coughcough** reFUND **coughcough** not reTURN **coughcough**

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