There isn’t much that will brighten your day more than when you see a large check come in the mail or hit your bank account. The tax refund has finally come! What are we going to do with it? Should we be responsible or should we hop on the next flight to Vegas?
Ever since I started claiming myself on my tax return, the tax refund has been something to look forward to. I believe that most people feel that way, even though receiving a large tax return isn’t that great when you think about it. A large return means that we have overpaid and have given an interest free loan to the government.
When I was younger, buying the latest technology or spending it on who knows what, was exactly what I would do with my refund. Once I got married, that all changed. Now we place the money into a savings account to pay for having a baby, or putting a down payment on a car, not to mention the home improvements or repairs that need to be made.
Have you ever done something stupid that costs you money you don’t have? How did you pay for it? Did you place it on your credit card or use your emergency fund? The past couple of weeks I have had a major budget crushing accident that has been killing me.
I love to garden, it takes a lot of stress out of my life. Last year I felt like I had a great garden that produced a large number of vegetables and I wanted to have more. After a period of time, I sort of convinced told my wife I was going to add three more garden boxes to our back yard. The current box I had set up to have our sprinkler system water the garden so I didn’t need to go out every day to do the watering. With the addition of three more garden beds, I knew I was going to need to add a couple more lines to the sprinkler system. I had dug out the area around the sprinkler box and found the direction where the pipe was heading and mapped out the course on the new line. I rented a trencher to do the hard work and started down my path I had marked out to where the new pipe would lay.
Ever heard of a sinking fund? I hadn’t heard of it until a few months ago, but understood the principles right away. Understanding what a sinking fund is can be incredibly beneficial to your budget. A sinking fund is a category in a budget that adds up each month, and only occasionally is spent.