Saving $ in 2014

The majority of Americans will file their taxes in the next three months and of those numbers the majority will get a bit of a refund.

The average refund?  $2800.00

So lets talk about that money.

Some people view that $2800.00 as a gift that they weren't expecting and they take it and blow it.  (Yes, people do blow money on stupid shit daily.)

Some people plan for that money and have budgeted for where it will go.

Some people expect it, get it, and act like they never got it and invest it.

Do you know who the smartest of the three are?

Nope, not number one.

Number two isn't very smart either.

Number three takes the blue ribbon.

Now let's face the music.  Today people have debt and they are either digging the hole of debt deeper or they are filling the hole in.  

My tip today:  Take your refund money and start filling that hole of debt in.

My financial guru of choice is Mr. Dave Ramsey.  I also like Suzy O too.  Both of them may agree with me on this...

Look at your debt - most people have credit card debt, school loan debt, car debt, and a mortgage.  What has the smallest balance?  That is what you need eliminate first.

If your Visa card has a balance on it and your Visa card is the least amount in your debt category lets get that shiz paid off STAT.  Best advice on this?  Apply the large payment and destroy the card.

If you eliminate the smaller balances first then you should have more lettuce to put towards the large balances.

Oh and stop with the shopping sprees.  You need to account for every penny in your name and weekly runs to Target will not alleviate your problems.

State refunds are much smaller than those the feds bestow on the population.  

The average state refund is around $300.  

Here's the deal you're a human and you're a lot like a doggie.  You want to be rewarded with a scratch behind the ears.  For humans the scratch behind the ears may be a mini vacation, a spa day, a golf day, a weekend in a cheap hotel room....whatever.

Use your big refund to get ahead on your debt and use that little bonus check from your state to do something nice for you and the family.  Put it in your vacation account or your Christmas account or your family fun account.  Just account for it and be smart on what you do with it.  I doubt you'll run into a random $300 check again for a year.

This closes up the Saving $ in 2014 posts.  Next month I'm focusing in on something a little more fun but equally meaningful.