Saturday, January 28, 2012

Our Tax Refund Plan

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?