Why spend your tax return instead of investing it?!
I'm getting a good chunk of money from taxes but I am not buying material things. Why? Because that's so financially stupid!! Why not invest it and turn it into more? Why are you buying stupid crap that doesn't do anything for you? TV's, cars, clothes, stereos, etc. I have yet to hear one of you mothers come on here and actually say something intelligent about where your tax return money will go, let alone money in general! If there have been some, then I apologize because I missed your post. Or, it didn't have enough drama so it got passed over. Anyway...
For those on government assistance who are receiving around $9,000 and spending that money on stuff, shame on you! Instead of using that money for food, diapers, formula, paying ahead on rent and utilities, etc. you're buying stuff. That disgusts me! If you're one of them, congratulations. You are the reason our country is financially a mess! NONE of you have any clue on how to manage your money properly and you use the rest of us to live and buy stupid things. If you're on food stamps and are receiving $9,000 then you no longer need food stamps. That $9,000 would cover food for a very very long time!! If you're smart about the money that is. If not, you disgust me!
Here is what I'm "buying" with my tax return...
I am purchasing a small house for investment purposes only for $56,000. It's a foreclosure. I could turn around and sell it as is for $110,000 (could take too long though) and have an ROI (return on investment) of just over 50%!! Or I can rent it as is for at least $950 per month. I've had it appraised. The mortgage is only $387 per month. It's in a nice neighborhood with some of the top schools but the previous owners didn't take care of it so it requires some work which I can afford to make or even do on my own. I am using about 3/4 for my tax return to repair the home. After repairs are completed and it's fully rentable by my standards the estimated rent will be about $1200 (could be more, could be less). Do the math... mortgage is $387 per month and renter will pay me $1200 per month making me an income of $813 per month. $300 of that per month I am putting into an account that will go towards maintenance on the home. Emergencies happen. So I am putting $513 in my pocket! The home will be paid off in no more than 10 years. If I do a bit more math, I will have earned back my tax return in about 16 months and after that... it's just more money in my pocket.
The rest of my income tax return is going into a stock I've been investing in for years that has made me very happy!! I've made $23,000 from one stock and all I've contributed was $800. I love trading stocks and watching my money work for me... what can I say? I'm a single mom of a 3 year old and am doing it all on my own.
If you're wondering how I got here. Read "Rich Woman" by Kim Kiyosaki. It's because of this book and following simple investing rules that the
last 3 years have changed my life. I came from nothing and now have a trust
fund of $80,000 set up for my 3 year old that is just getting bigger every year. I never thought that would happen to me!
So, ladies. Where are the financially smart moms not blowing money on useless crap? Where are the moms who invest there money into real estate, stocks, there own business, etc.? Please share your stories and tell other moms how you did it. I'm sick of people not using there money in a smart way while our economy continues to plummet!
EDIT: Obviously paying off debt is also a financially smart decision. If that is what you spend your tax return on, then I have no complaints. I never would put someone down for paying off debt! That's a great way to spend your tax return! :)