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Why spend your tax return instead of investing it?!

Anonymous
Posted by Anonymous
  • 246 Replies
4 moms liked this

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! :)

Posted by Anonymous on Jan. 11, 2013 at 3:04 PM
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Replies (1-10):
winkyloafer
by on Jan. 11, 2013 at 3:04 PM
2 moms liked this
This makes too much sense.
Posted on CafeMom Mobile
Anonymous
by Anonymous 2 on Jan. 11, 2013 at 3:06 PM
I am paying off medical bills.
Anonymous
by Anonymous 3 on Jan. 11, 2013 at 3:06 PM
Blah blah
Mind your own business
And no I'm not getting gobs of $$$ back
emeraldangel2.0
by on Jan. 11, 2013 at 3:06 PM

i'm spending it on getting out of my momma's house

Anonymous
by Anonymous 4 on Jan. 11, 2013 at 3:08 PM
1 mom liked this

How does anyone on assistance get 9k back?

The most I've ever received back is 3K and not on assistance.

Kaya529
by Platinum Member on Jan. 11, 2013 at 3:08 PM
I have been using it for schooling. I have to take the semester off to use the money to buy a good computer to run the programs I need for school. I got B's and C's instead of my usual A's from not having the right equipment.
Posted on the NEW CafeMom Mobile
Anonymous
by Anonymous 5 on Jan. 11, 2013 at 3:09 PM
1 mom liked this

Why not mind your own business and do what you want to do with your money and everyone else can do what they want with their money!

mommaoftwo
by Gold Member on Jan. 11, 2013 at 3:10 PM

I am using it to pay down debt, and perhaps make a bigger purchase that we generally cannot afford. Like we might replace my washing machine because our's is awful

Anonymous
by Anonymous 6 on Jan. 11, 2013 at 3:10 PM
We're not on assistance and get around 9000. But we're active duty military and so little of our income is taxable. Plus we have four kids.
ImNotKarl
by Also Not Paul on Jan. 11, 2013 at 3:10 PM

Because we don't have a car, and we need one, and we have a couple debts that need to be paid off so they don't go to collections, and we have a new baby coming, and there are things we need immediately that an investment wouldn't provide fast enough. We're going to save some of what's left, and do something nice since we got married yesterday and I would like to have some small celebration.

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