Tax season is here!
That’s exciting news for many people who are expecting returns, but not everyone is. For better or worse, here’s the rundown of how many people are expecting returns, and what they are planning to do with them.
The results will likely surprise you.
According to a Recent Bankrate Survey:
- 48% of respondents expect to get a refund this year
- 3% have already received a refund (as of 2/21/2016)
- 24% expect to owe more money
- 15% don’t expect a refund and don’t expect to pay
- 9% either don’t know or refused to answer the question
What Are People Doing With Their Returns?
- 31% will save or invest it
- 28% will use the money to reduce debt
- 27% will spend their return on necessities (food and utilities)
- 6% will splurge
- 8% weren’t sure or had other plans
I was a little surprised to see that only 6% of those surveyed plan to use the money to splurge on items such as vacations and shopping sprees. I had assumed this number would be considerably higher, but the results of this survey shows a high degree of responsible spending.
That’s more than 8 out of 10 people who plan to use their refunds “responsibly.”
Have you decided what to do with your tax return?
If you’re one of the 31% who plans to save or invest it, consider the following six rules of investing before doing so.
Tim Plachta, CFP® is the founder of Reliant Wealth Management, LLC. He works with clients all over the country to help guide them toward financial independence.