The incredibly wise Dave Ramsey says you shouldn’t have a tax refund because basically you’re giving Uncle Sam an interest-free loan on money you earned. Makes sense, but getting one is still fun. It still feels a little like a windfall and any day now ours should be arriving.
If you want some tips on how to make your refund stretch you can read the article I wrote for The Bargainst. It’s got some good ideas, but here is how we are actually going to divy up our tax refund:
10% is going to six new dining room chairs. We bought the table six months ago and since then have been borrowing two chairs from our super sweet neighbors. We are finally going to road trip it to Ikea and buy the ones we want with our refund.
36% of the tax refund is going into retirement savings. I learned that $1,000 saved now will equal at least $18000 in 30 years without any work.
18% of the money is going to be invested in the stock market. We plan to be a little risky with this money and see what happens.