Tax Time: Gucci Shoes or Your Life?
March 6, 2010 5 Comments
It is that time of year again; tax season!
For many people, a tax return is more exciting than any holiday. Tax returns mean shopping sprees and vacations. We dream of Gucci shoes, Prada sunglasses and Coach purses with more anticipation than we do of sugar plums on Christmas morning.
A large return also means a chance to catch up on old bills, bulk up our savings account or pay down debts. Instead of using your tax return to buy more Stuff, take an honest look at your financial situation and use this as an opportunity to begin your journey toward financial freedom.
A refund can buy an expensive pair of shoes or it can be a chance for you to set the stage for a new phase of your life. Living with debt limits your potential. Living without savings restricts your ability to capture opportunity. Now is your chance to eliminate the limitations and prepare for opportunity.
Nothing you can buy at a store will change your life. An expensive purchase may bring a rush of endorphins that make you feel on top of the world, but at the end of the day, you are no better off than you were before and another opportunity has slipped through your fingertips.
A tax refund is only the beginning. A refund means little without a desire for real change. Your good intentions of paying down debt or building savings can be undone in a moment of indiscretion. Real change requires discipline and determination on a daily basis, the days when you make small financial decisions.
Tax time comes around but once a year and we are faced with the difficult choice of fiscal responsibility or personal indulgence, yet each day we are faced with countless financial choices that can accumulate and far exceed the value of any tax return, however, we don’t give them the same amount of consideration. For real change to occur, we need to question the day to day expenses as well.
Financial stability does not occur as a result of once a year decisions. Financial stability results from a daily diligence to save, to live frugally and spend wisely. Financial stability is a result of living within our means and staying out of debt. It isn’t an annual tax return that creates change. This is only the first step in the journey towards a life of financial stability.
Will you use this year’s tax return to buy Gucci shoes or will you use it as a stepping stone towards improving your financial situation and changing your life?
About Steven
I agree that if one has debt, he should pay off the debt with tax refund before spending on things that he does not need.
In the past I have always blown my refund. This year I got the biggest refund I have ever gotten and I am proud of myself for putting it to good use! Due to the unexpected death of my boss/landlord I was left without a job and not the best living situation. I used my refund to start college and to put a security deposit and 3 months rent on a apartment in a new town, far away to start a new life for my family. I admit that I did blow a fair amount of the refund on things I didn’t actually NEED but I only did that after all my credit cards were paid off and bills paid up. This is the first time I feel like I have actually gotten something out of my refund…….. even though in past years I bought products I had been wanting I do not remember what any of them were. This year I changed my family’s life and future with that money and I couldn’t be more excited.
That is awesome! I think it is great that you used this as an opportunity to dramatically change and improve your life! I’m sure it beats having a new gidget or gizmo and in the long run, when you are finished with school and have a degree, your life will change even more! Great job using this tax return as the stepping stone for a new life and future! This is exactly what I was trying to write about in my post and I appreciate you sharing your story with me and hopefully it will inspire others to follow in your footsteps!
Wha…, sorry, were you writing about something? I was distracted by the picture……
But seriously, I am getting a larger tax refund this year than I have in previous years and I’ve already allocated the funds. I’ll be paying off debt with my refunds and will actually knock out all my remaining non-mortgage debt in April. I’m pretty excited about it and know that this has been achieved only through sacrifice and smart decisions and I figure those traits will help me build a nice financial future.
Thanks for the article Steven.
Dave
Dave- I have to get your attention SOMEHOW!!! LOL! It seems I’m running a theme of attractive ladies as of lately, with more to come soon, I promise!
Great news about finishing up the NM debt, that is a great accomplishment! Then onward to bigger and better things! Are you planning to snowballing your budgeted debt repayment money into your mortage now and knock that out asap?
Don’t forget to celebrate your victory, though! I wouldn’t want you to burn out on the debt repayment…I know how that can be, it gets old in a hurry! Have you made any plans for your vacation? I’m looking forward to reading about what you have in mind!