If you get a tax refund, SPEND IT...or at least SOME of it. I'm shocked to learn that only 6% of Americans plan to blow their tax return on something fun. This new study says that 63% of people will save it of spend it on a necessity.
You only live once. How often does someone hand you $500 or even $1,000... or more? if you want to be practical, at least try this... Spend 40% on something FUN, save 30%, and Use 30% for a necessity (or bills). No one was ever quoted on their death bed saying "Glad I put that 500 bucks aside for something sensible." Need a rationalization? Spending money stimulates the economy. The guy selling that big T or electronic gadget, or vacation needs to feed his kids too. Help the guy out and feel good about it..
According to a new Bankrate.com survey, 34% of folks plan to save or invest their refund, while 29% will use it on necessities and 27% will use it to pay down their debts. The truth is, only 6% of folks admit they’ll use it for some sort of splurge.
Overall, 47% of folks say they expect a refund, which is down from 49% last year. Millennials are most likely to be the ones expecting a refunds (66%), followed by Gen Xers (49%), Baby Boomers (34%) and the Silent Generation (26%).
Meanwhile, about 25% of people have already filled out their tax returns for the year, with two out of three either already receiving their refund, or expecting one in the coming weeks. Of course there will always be procrastinators, with 29% of people waiting until April 1st or later. Not surprising, less than half of these procrastinators expect to get a refund this year.
photo: Getty Images/ Chung Sung-Jun / Staff