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Mom Confessions Mom Confessions

Why spend your tax return instead of investing it?!

Posted by Anonymous   + Show Post

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
Replies (191-200):
fullxbusymom
by Ruby Member on Jan. 11, 2013 at 7:14 PM

Because we HAVE to do things for our house.  We need a deck on our house, the kids need some things and our bathroom has to have some renovations as it is in need.  Most will go to paying off bills.  Then we want to take maybe $200 of it and take the kids for a week of camping. 

The rest will stay in our acct. and be used to help us survive the rest of the year. 

VeggieRunnerMom
by Member on Jan. 11, 2013 at 7:19 PM

hmm thanks!

It has always felt like lying to me lol!!!

Quoting CrimsonGrace:

Yes, you can.


Quoting VeggieRunnerMom:

I see people say this often can your withholding be higher than what it actually is?

cause isn't that number the people in your family? we already claim 6 cause that is what we are? can we do higher? 

Quoting CrimsonGrace:

You could just adjust your withholdings and not give the goverment a free loan. You would then have money each month to invest.




Vipergirl22
by Gold Member on Jan. 11, 2013 at 7:20 PM

Well it depends on what dh gets back. We changed taxes a little so he can get a little more in his take home. However, we will put a small chunk of it into our car payment, which we still owe about $7,000 on, then put some into savings ( savings is for a down payment when we get it), some might go into our dd's savings, and then we will spend some on us. Again it all depends how much will go where when he gets his return back. We talk about it before we do anything or he gives me an idea and I say yes or no to it. Oh yea, we will pay off the rest of his credit card and get me my own hopefully so I can start building credit.

SLMitchell
by on Jan. 11, 2013 at 7:23 PM

I was born and raised in Texas. :)

My husband is not from Texas, but he sort of fell in love with it while he was stationed there.  Well, after I showed him real Texas, and not just the area around Fort Hood and 6th Street in Austin at night...lol.  He has thought about going to school many times, but he is just not the college type, and he does not have enough faith in himself to have a large part of our income depend on his ability to keep his grades up.

If I can manage to save money while living in Hawaii, I can save money anywhere! LOL

Quoting Charise820:

my husband is 80% disabled and currently in school what he was suppose to get was enough to live thrifty on while we were both in school plus money from school but right now we are not getting it so we are living on 1/3 of what we used too. 


awesome dream with the land in tx, I am here in tx I don't like this state but I am from NY LOL

Quoting SLMitchell:

He will most likely be getting a little bit of disability for his back and hearing, but it would not be enough to fully support us, and he likes to have something to do.  Our ultimate goal is to buy a small piece of land back home in Texas, and slowly build up as self-sufficient a lifestyle as possible.

Quoting Charise820:

Great idea, though he might be able to get unempjloyment as well.  I wish we had a better nest egg when dh retired, but we trusted what we were told. and paid of debt so we wouldn't have as much now.

Quoting SLMitchell:

I will be be putting aside about $1000 of this tax return to stock up on groceries, toiletries, and paper products at the next commissary case lot sale.  Other than that, we are saving the majority our tax returns while we are stationed in Hawaii.  The plan is to use that money and our monthly savings deposits as a nest egg, as he is getting out of the military after this duty station, and we have no idea how long it will take him to find a job.  A big chunk of the nest egg will go to paying off our vehicle, since right now the payments come directly out of his paycheck.





CrimsonGrace
by Gold Member on Jan. 11, 2013 at 7:25 PM
1 mom liked this
It isn't, now if you claim 15 and only have six you may owe. You can also change it too, say you usually get back a big refund, claim what you always do for six months and then the other six months claim more till you figure out where you need to be.


Quoting VeggieRunnerMom:

hmm thanks!

It has always felt like lying to me lol!!!

Quoting CrimsonGrace:

Yes, you can.





Quoting VeggieRunnerMom:

I see people say this often can your withholding be higher than what it actually is?

cause isn't that number the people in your family? we already claim 6 cause that is what we are? can we do higher? 

Quoting CrimsonGrace:

You could just adjust your withholdings and not give the goverment a free loan. You would then have money each month to invest.






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Anonymous
by Anonymous 43 on Jan. 11, 2013 at 7:32 PM
I just love how people assume! I was on PA when I left my kids' dad years ago and when I went to file taxes the most I'd gotten was 700.00. So idk how everyone figures people on PA get so much back. I dread this time of year and the bitter posts. You do great things with your money, congrats...but perhaps what others do isn't your concern...ya think!?
mommy74146
by Platinum Member on Jan. 11, 2013 at 7:35 PM
You can combine years? Say I go this year without filing and file next year I would get 2 years worth of returns in one?


Quoting mommyrustina:

We are combining ours with last year's return and paying cash for our home addition, do I get a cafemom cookie?  


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night.magic
by Silver Member on Jan. 11, 2013 at 7:37 PM

 I gotta buy a new dryer, and tires for both vehicles. If there is enough left over will restock the kitchen cabinets and buy cleaning supplies. That is not money wasted. May not get a big enough return anyway. Don't know for sure yet.

mommy74146
by Platinum Member on Jan. 11, 2013 at 7:45 PM
We are going on a vacation in July with it. For the past 8 years we have done nothing like that. We have scrapped and scratched to make ends meet. We have used our returns to pay bills and things we needed. Never since ds has been born have we took a vacation. Now that I have a decent paying job and job security, we have decided to take this return and treat ourselves to a trip to the beach for a few days. I don't care who doesn't like it. We deserve it.
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carter210
by on Jan. 11, 2013 at 7:47 PM
We are using ours to move into our own apartment and pay up 6 months of rent in advance. We are also throwing a birthday party for our sons who are turning 1 and 7 next month. :)
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