Well it is no secret, hubby really did not make much for 2011, a whopping $13,900 gross wages! Pathetic I know, I suppose it should be a consolation that we were listening on the news the other day about how central Michigan has been hit the hardest in the down economy. They went on to say that in 2008 at the collapse of the economy Flint lost 13 percent of their jobs and since then, only 3 percent has been restored.
In any case another part of the equation is that hubby has not moved up to management although when they hired him, that is what they wanted as he has 13 years of restaurant management experience. Yes this has been by choice, after hubby had 2 heart attacks at age 38, we decided a little more money was not worth an early funeral. We would much rather make a lower wage and have the sweetheart of a man live a long life! Between the stress and his lack of discipline in horrid fast food diets when he is a manager..........it is just simply not worth it, not to mention if anyone knows anything about restaurant management knows that having a family life outside of work is just impossible. We use to try to go out to eat and wind up sitting in a car for HOURS while he bounced from store to store ( he managed a couple at once) or go on vacation just to get calls of where the heck was he. Picnics or a day at the beach always had to be cancelled, or well any plans always seemed to get cancelled. We got phone calls at all hours of night and day where everything had to be dropped, including leaving stores in the middle of grocery shopping! IT SUCKED!
Anyways on top of his $13,900 we did have an additional $4,000 from alternative sources come it for a whopping $17,900 annual income for a family of 5 that happens to rent. Doable but very very very hard.
One of the things that made it difficult is that hubby's hours can bounce all over the place, one month getting 40 hours a week, the next month or two getting 20 to 30 hours a week. The times it is only 20 hours a week leaves us juggling bills all over the place as there is just not enough to go around for everything and we already keep our bills fairly low.
But now it is tax season and I was able to get them done yesterday, being very pleased with what we are getting back!
It is a nice fairly large sum for this year, so our plan is to have it refunded to us on a re loadable debit card. We then will be using the refund to boost our income for 12 months which will greatly increase our quality of life and easily tide us over in months hours from work are crap.
I figured a re loadable debit card will be the easiest to manage for this project and can easily deduct a certain amount each month from it to add to our monthly income.
This will mean no stressing over how low propane is getting, no stressing over what bills to juggle and allow us to breath the whole year round.
Many people that are in financial situations as ours typically use a large refund to SPEND IMMEDIATELY, to catch up on their mortgage, shop for all those things they think they want or go on an expensive vacation. While the fun lasts a month or two, they end up running out and going back to struggling the next 10 months of the year until tax refund time where they repeat the process all over.
Me? I would rather rest easier all year round, What do you think?
Do you think this is a wise decision or would you do something else?
In any case another part of the equation is that hubby has not moved up to management although when they hired him, that is what they wanted as he has 13 years of restaurant management experience. Yes this has been by choice, after hubby had 2 heart attacks at age 38, we decided a little more money was not worth an early funeral. We would much rather make a lower wage and have the sweetheart of a man live a long life! Between the stress and his lack of discipline in horrid fast food diets when he is a manager..........it is just simply not worth it, not to mention if anyone knows anything about restaurant management knows that having a family life outside of work is just impossible. We use to try to go out to eat and wind up sitting in a car for HOURS while he bounced from store to store ( he managed a couple at once) or go on vacation just to get calls of where the heck was he. Picnics or a day at the beach always had to be cancelled, or well any plans always seemed to get cancelled. We got phone calls at all hours of night and day where everything had to be dropped, including leaving stores in the middle of grocery shopping! IT SUCKED!
Anyways on top of his $13,900 we did have an additional $4,000 from alternative sources come it for a whopping $17,900 annual income for a family of 5 that happens to rent. Doable but very very very hard.
One of the things that made it difficult is that hubby's hours can bounce all over the place, one month getting 40 hours a week, the next month or two getting 20 to 30 hours a week. The times it is only 20 hours a week leaves us juggling bills all over the place as there is just not enough to go around for everything and we already keep our bills fairly low.
But now it is tax season and I was able to get them done yesterday, being very pleased with what we are getting back!
It is a nice fairly large sum for this year, so our plan is to have it refunded to us on a re loadable debit card. We then will be using the refund to boost our income for 12 months which will greatly increase our quality of life and easily tide us over in months hours from work are crap.
I figured a re loadable debit card will be the easiest to manage for this project and can easily deduct a certain amount each month from it to add to our monthly income.
This will mean no stressing over how low propane is getting, no stressing over what bills to juggle and allow us to breath the whole year round.
Many people that are in financial situations as ours typically use a large refund to SPEND IMMEDIATELY, to catch up on their mortgage, shop for all those things they think they want or go on an expensive vacation. While the fun lasts a month or two, they end up running out and going back to struggling the next 10 months of the year until tax refund time where they repeat the process all over.
Me? I would rather rest easier all year round, What do you think?
Do you think this is a wise decision or would you do something else?
I agree with you about adding the money to your yearly budget. I think it's a great idea. I really hope you didn't pay one of those tax places to do your taxes though. They are such money suckers for poor people. Trust me I went there until last year when I discovered the freedom tax project. You can do you taxes yourself for free on the major tax companies websites if your income falls below a certain amount ( around $40,000) I used Turbo tax freedom edition.
ReplyDeleteI'm still waiting on my refund to hit my bank account but when it does, it's headed straight to the emergency fund. It's amazing the amount of earned income credit they give us poor folk huh? I'm in kind of a windfall right now but last year I only earned $7000 and got back a credit of close to $5000.
OH no , I LOVE taxes, they truly are a hobby to me and I think are facinating so since 19 years old I always stay on top of new tax laws and do my own. I had an exception around 15 years ago where I worked everyday for 16 hours a day, no days off hardly ever, maybe 1 day every 20 days! So I did pay H & R Block for 3 years to do them however when I left that job and got a little sleep under my belt, I went over them and found they made huge mistakes that cost me $2000 a year!
DeleteWhen I pointed it out, they wante ME to pay for them to do 3 years of amendments! NO THANKS I ammended them myself ( took 10 minutes) got my money back on taxes that was due me and never paid again to do something I can do myself.
Even if you pay someone it is still good practice to know the ins and outs of taxes.
and yes, people gripe about the rich but they very rarely discuss the big tax benefits of the low income with children which is meant to increase standard of living.
Almost every financial guru suggests that a family have a 6 month "emergency fund", in case of illness, loss of job, etc. It's also really, really nice to have a cushion in your finances. It sounds like your reloadable debit card is something like that. If you don't have credit card or other debt, then I'd agree that it's good to put this money in a safe place and use it only as needed -- breathing easier about finances is a huge gift to yourself and your family!
ReplyDeleteThe contingency fund is actually another goal of mine, after all, the financial gurus usually are people who have enough money when they cut back.
DeleteThe tax refund is to increase our income so we can meet our basic needs which fall short the way things are right now. I am working on that though.
My goal is to actually get a contingency fund of $9,000 funded which I am looking into the means to do so.
Basic needs first though!
I think you made a wise choice. I am now a follower of your blog.
ReplyDeleteI have a couple of money saving tips on blog today about growing potatoes from potato peeling and growing onions in a glass of water.
Gill in Canada
Thanks for the follow! You have a wonderful blog yourself and I will have to come check out the tips when I get a chance later tongight!
DeleteI agree that it is wise to use the refund to spread out over the year and add to your monthly budget.
ReplyDeleteThanks CFM! I am so digging your Grand a Month Blog it is a great motivator!
DeleteSmart idea to save it for use throughout the year. Is the balance safe in case the card gets lost or stolen?
ReplyDeleteYes it is safe in case of lost or stolen! I guess you can even have your paychecks direct deposited on it if you like. Go figure!
DeleteFound your blog via the comments section on the Grand Per Month site. Very nice start to your blog!
ReplyDeleteI also live in Michigan, and I am always interested to follow the blogs of fellow Michiganders!
Good plan with your Tax debit card. Hopefully it lasts you all year long, and perhaps you'll even have some extra money on it around Christmas time.
Thanks and hello to a fellow Michigander!
ReplyDeleteNot hopefully, it WILL last all year LOL, I need to be real disciplined there!