Friday, March 08, 2013

A Pre-Savings Plan

I just completed my taxes and I'm getting money back. When my brain hears that I am getting money back, it gets excited for all the items I need that I might be able to buy. I saw a couch at the local second-hand shop...$200...seems like almost nothing with the refund I am getting. So, my question today is, "Why does $4000 in "refund" feel like spending money, while $4000 of savings feels untouchable?"

The reality of the situation is that a lot of people use their refunds as savings.

But what do you use your savings for? Vacations, furniture, big purchases? It seems I use my tax refund as a "pre-savings" plan. It's like I am just one teensy refund off from being able to have a savings plan. I live in such paucity year round, paycheck to paycheck with cash flow issues, getting a windfall is like a "pre-savings" plan. It gets my brain a-thinking about what I might want to buy with  my "savings." I have to stop the pattern!

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