Money Matters: What Are You Doing With Your Tax Return?

So, after tax season comes tax return season or… audits… or money you may owe to the IRS. This is can be a touchy topic here, but bare with me. And I know lots of people will say, “If youre getting a tax return that means you gave too much money to the government interest free”. I don’t disagree with that statement but I’m not here for that arguement… yet. I’m here for those of you ladies who’ll be getting a return.

So, let’s talk about how we’ll be using that money and where it’ll be going. I’ve already received my state return and I had that directly deposited into my “Dream Home Fund”. That’s a bit of good news. If I actually see all of my $1,164 federal return, I’ve already decide to divide that into thirds.

  1. One-third will be split among my savings. $194 will be going into my Emergency Fund. And I’ll drop the other $194 into my “Dream Home Fund”. Really trying to beef up that goal.
  2. Another third will go into my business and personal development. Any remainder monies will go into my Emergency Fund.
  3. And the final third, $388, will hang out in my account for 30 days. If in 30 days I cannot find a real need for something important I need to buy, then it will be split again among my savings accounts. Or maybe I’ll start my Travel Fund. I’ll see.

If you noticed, I have only two real goals for my tax returns. To save money and to invest in myself. That’s really it. That’s all I want to do. I don’t need to buy anything for myself or my apartment. Im not trying to go on some splurge and live it up. No shopping sprees for me.

I made a decision not to pay down student loan debt, because I just feel right now while I am making steady payments on time, it’s important I beef my savings, both long and short term. And when I get my saving accountd to where I want them to be in the near future, I’ll change gears.

Point is: my money has a plan because I’m on a mission. What’s the plan for your money?

Money Matters: More Money Should Mean More Problems

Earning more money (get it, girl) shouldn’t mean more problems. Yet, as our income grows, so does our expenses, which is weird as hell. I mean, think about it. When were making $35,000/year we’re buying a whole lot less stuff than when we’re making $50K or $60k a year. Shopping at dollar stores and discount box retailers. We were going to thrift shops and we’re catching matinees instead of going to opening night shows.

In other words, we were budgeting.

Yet, when we start making more money, we budget less believing we can now “afford” it. 🤔 Yeah, about that because I know firsthand how good it feels to having extra dough lining my pockets and not getting anymore below balance alerts from my bank. I get it, girl, I get it.

But before you starting adding items to your Amazon shopping cart, plan for your future first. Call me “mama bear” if you want, but I’m serious. Take some of that extra monies and double your savings. Create a travel fund. Pay down your student loan debt. Increase or start your emergency fund. Then when you’ve successfully established these funds and savings account, goEA get that spring dress that caught your eye in your inbox. Order those shoes that’s been on your wishlist since August. Just make sure to take care the you-now and the you-later as not to have any unnecessary money problems that can catch you by surprise.

Unless they’re rich people’s problems, in which case…

Money Matters: Get You a Side Hustle

If don’t have a side I hope you’re already living your dream. And if so, 👏👏👏👏👏👏. Do you, boo!

But if not, why not? It’s been reported and polled and studied that, in U.S. at least, between 70-80% of people hate their job. I’m one of them!!! But unlike the bulk of the country who would rather call out sick than drag their crushed souls into the office Monday through Friday, I have a side hustle. I have a few, in fact. And I roll my eyes to those who do not have a side hustle at all.

Sorry, not sorry.

In all seriousness, how can anyone complain about a job they feel pays them too little and works them too hard not do anything about it? I never understood that.

Now, you may think that person can just start looking for another job but let me ask this: do you really think they’re going to find everything from that one new job?

I’m gonna go with no. And that’s ok. Its almost weird if a job is completely satisfactory that we don’t need to look anywhere else to fill our voids. Even a decent or good job may lack some soul-purpose elements.

But to work at job and not have a side hustle in the city is almost dangerous. We have rising rents, fees coming at us left and right, and for 61% of us (allegedly), no savings. I mean, why don’t you just get the lighter fluid and matches now?

Okay. Sorry, sorry. Too far. But, was it really?

2017 and 2018 were some pretty expensive years as Los Angeles made it’s way to being the 3rd most expensive city in the county. Being beat out by only New York and San Francisco. And I don’t see 2019 being a generous one. So I tell everyone who has the mindset to hear it, get you a side hustle.

If for no other reasons, for these two:

  1. Build your non existing savings or to beef it up
  2. To add more skills under your belt and become more you desirable to lucrative prospective employers (bosses who will pay you better)

In other words, a side hustle is the easiest and quickest way to increase your net worth, help you build wealth and develop and build skills.

Your job now may be about your career or a bridge to your career. But a side hustle is all about staying in the black.