Tax refund - Thank goodness :)

iVillage Member
Registered: 04-10-2003
Tax refund - Thank goodness :)
11
Mon, 03-19-2012 - 9:13am

I did my taxes this weekend and it looks like I'm getting about $1200 back. I have been hoarding money for the past few months because I was sure I was going to owe :) I had saved around $900.

My first instinct was to put the money right on my student loans but I'm not sure. I sat with my advisor and did the math. The loans really are not costing me all that much (5.5% on my student loans but it a tax deduction meaning the real rate is closer to 2.75% and 1.9% on the car).

I have been trying for ages to put money aside to spend on ME but haven't been very successful to date. I really want a motorcycle (fell in love with it a few years ago but haven't been able to save the money because I kept putting it on loans). So I am testing myself.

If I can cut my food budget down to a reasonable amount (i.e. NOT $800 for one person) for two months, then I will give myself permission to spend on the motorcycle (I can send the savings from food to the loan). If I can't, good bye motorcyle, and on the loan it goes.

Keep your fingers crossed for me!


Bex -

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iVillage Member
Registered: 02-19-1998
Wed, 03-21-2012 - 11:54am

Good for you! I do think you're allowed one guilty pleasure. And yes definitely buy a used one - that should save you tons of cash. As long as you have a mechanic check it over first before buying.

It felt so good earlier this month to pay cash for a new stove and two cell phones, plus finally getting our dog her shots etc. And the rest was put away in EF savings! Hoping for more to put away with a bonus, but haven't heard when we're going to get that!

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iVillage Member
Registered: 04-10-2003
Wed, 03-21-2012 - 9:11am
NICE! That is exactly what I'm looking for PB!! Too bad it's in the wrong country. Sigh. BUT that's what I want. Something that isn't too big that I can learn on and then move up in a few years!

Bex -

Avatar for poorboy2011
iVillage Member
Registered: 10-02-2011
Tue, 03-20-2012 - 9:52pm

iVillage Member
Registered: 04-10-2003
Tue, 03-20-2012 - 8:59pm
Thank you all for you feedback. I appreciate it! I have all the gear already. BF bought it for me last year because he refused to let me on the back of his bike unless I had the proper safety gear. PB you are right, I will need more than $1200. I already have $900 that was put aside for taxes so by the time I actually get the refund I will have over $2500 put aside. As for the insurance, I priced it out today and I'm looking at $50 - $60 a month mainly because I am looking at getting a used bike (PB I'm thinking a Ninja that is 5 years old - I would be looking at about $3500 - $4500 depending on mileage.) I'm NOT taking out new loans, I'm using cash (so it may be a month or two before I can get the money together). I LOVE riding. Even just being on the back of the bike is so freeing. Because of the fact that you have to pay attention to every move that is being made, its one of the few times that I can shut my mind off and clear it. I am leaning toward the bike still, but only if I meet some other goals that I have in mind :)

Bex -

Avatar for poorboy2011
iVillage Member
Registered: 10-02-2011
Tue, 03-20-2012 - 8:49pm

No fair! No fair! I

iVillage Member
Registered: 08-24-2007
Tue, 03-20-2012 - 7:55pm
I must be a Mom, because my first thought was "A motorcycle? Bex, no, they're dangerous!!"

But, okay, you're a grown-up capable of making safe decisions, so I have put that thought onto the backburner. Maybe.

I agree with the financial advisor that since the interest on your loans is tax deductible, paying it off may not be the best thing to do with the money. Are all your other debts paid off?

Oh my, oh no, despite my best efforts, I'm still thinking the motorcycle is dangerous!

Kate


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iVillage Member
Registered: 05-16-2009
Tue, 03-20-2012 - 7:46pm

I wouldn't splurge on a motorcycle.

iVillage Member
Registered: 05-09-2002
Tue, 03-20-2012 - 6:58pm

Agreed go for the motorcycle!

iVillage Member
Registered: 05-08-2006
Mon, 03-19-2012 - 8:57pm
I am probably in the minority but I say - go for the motorcycle. You are young. You are buying your house, not renting. You are in a solid career. Life is short - treat yourself to the motorcycle. Ride it carefully...this is something you should do while you are young and unencumbered with responsibilities. If it motivates you to eat at home and save that way, it's worth it. Mental health matters... Just my opinion (never brave enough to drive a motorcycle, but always a little attracted to those bad boys in leather jacket who do) SJ
iVillage Member
Registered: 11-14-2008
Mon, 03-19-2012 - 11:21am

Making more time for yourself and having fun does not necessarily involve taking on something new.

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