Savings Tip – Save Tax Refund

Are you looking to THRIVE in 2012?  Are you sick of surviving and want to move to thriving?

One of the key steps required to thrive is to SAVE MONEY. Build margin between you and Murphy’s Law.

My challenge to you TODAY is to save your tax refund.

I know that you want to …

  • Spend it!
  • Go on vacation with it!
  • Kill debt with it!
  • Pay off Christmas 2011 with it!

BUT, if you do not have AT LEAST $2,500 in your emergency savings account, then you should put it directly into savings. Margin is what will allow you to think in terms of five and ten years from now instead of five and ten minutes from now.

QUESTION: What are you going to do with your tax refund?  Would you please share it with me in the comments?

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7 Responses to “Savings Tip – Save Tax Refund”

  1. Darin Nash February 10, 2012 at 7:02 am #

    I am 46 and will get a $3,100 tax return this year. I have never done anything but blow my tax return. This year for the first time ever, I am going to save at least $2,500. I will open a savings account at the local credit union. God help me and give me guidance.

  2. Scott Bryant February 10, 2012 at 8:15 am #

    Last year I saved $3K from my $5K tax return. Over the year I never spent any of the $3K. About 6 or 7 months ago Joe came to my church. (Believers Church – Chesapeake VA) In the one hour I sat there and listened to Joe, I learned a lot! At that time I had a 2nd Mortgage on my house with a balance of $8K. I really didn’t have the income coming in to even make the payment. I also had a car that was valued at $4500. I really never used this car. I sold that car and got the $4500 dollars and put it all on the balance of my 2nd Mortgage. I then took the $3K I had sittin’ in the bank and put that on the balance. I then owed about $450. When I got my next paycheck, I went to the bank and paid it off!!!! Man, what a feeling!!! Yes, I depleated my emergency fund, but I paid off an $8K debt within 6 months of putting my plan into action. I will get my tax check soon from this years return. I will replenish what I took out a few months ago. No, this was NOT the safest thing for me to do, but I really felt I had God on my side to help me through this. Thanks for the advice Joe!!!

  3. Davina February 10, 2012 at 9:34 am #

    Hi, Joe! I have a question related to this post. When you came to my church 2 weeks ago, I was (and still am) in the middle of a financial emergency. I currently have a defaulted student loan that has been forwarded to collections. I’ve been making monthly payments to the collections agency, but still, my credit is taking a hit. I know that you say to put your tax return in your savings so you can have it for emergencies, but I’d consider this to be an emergency. My tax return is just enough to pay off the balance of my defaulted student loan. In this case, would it be wise to use it to pay off this debt?

    Note: In December I began putting 10% of each paycheck into a savings account, so I am in the process of building a savings emergency fund.

  4. Jana teNijenhuis February 11, 2012 at 9:09 am #

    Until I read this email I was planning on purchasing a new sofa with our tax refund. This email reminded me to keep focused. I will tithe on it first! Then top off my emergency fund. Thanks for the encouragement!

  5. Amy February 11, 2012 at 9:21 am #

    We are getting aproximately $4500 back this year. We are going to put $2500 into the emergency fund and the rest will go to play associated closing costs for refinancing our mortgage. We are going to save about $200 a month on that bill alone.

  6. Cody February 13, 2012 at 9:50 am #

    We already have our emergency savings and our working on our debt snowball. All of our tax refund was applied to our debt and took a big chunk off. Thanks for all you do.

  7. Sarah February 15, 2012 at 9:40 pm #

    I’m getting about 6k back and will be applying some to my emergency fund, some to debt and some to some necessities for my kids. Determined to be out of revolving CC debt this year!

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