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Is it smart to blow all your yearly income on luxuries and rely on your income tax returns for serious stuff?

February 13, 2010 by admin 9 Comments »
ChrisRedfield29 asked:

My friend decided that he would blow all of his yearly income on luxuries and what ever he wants and then use his income tax returns at the end of the year to buy his truck. I dont believe he is on solid ground with this theory. What do you think? He works a full time job making 9.25 an hour cutting grass. only claims himself as a dependent.

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9 Responses to “Is it smart to blow all your yearly income on luxuries and rely on your income tax returns for serious stuff?”

  1. Golden_Goose says:
    February 14, 2010 at 8:10 am

    sonora california

    Not smart at all

  2. ddj123456 says:
    February 14, 2010 at 6:05 pm

    Not so smart!!!!!!!!!!!

  3. shamieya says:
    February 16, 2010 at 6:07 pm

    there are a lot more things to spend money on other than luxuries and a truck. your friend doesn’t sound like he has his priorities straight.

  4. yourbugsrmine says:
    February 17, 2010 at 12:15 pm

    there is no possible way he will be able to buy a truck with his tax return. I made similar wages last year and my tax return was only $800. at the max he will maybe get $1,500.

  5. Judy says:
    February 18, 2010 at 8:59 am

    Doesn’t sound very smart, but I guess he can spend his money however he wants to as long as he pays his bills.

    If he has that big of a refund, he’s making an interest-free loan to the government through the year. A lot of people who can’t manage to save otherwise do this.

  6. stricklyai_03 says:
    February 18, 2010 at 12:33 pm

    Actually he should do the opposite. If he spends his income on important stuff all year long, He can splurge when he gets him income tax because he wont have any debt. I did something similar. I got laid off and took my time to find another job since im a student also. I figured I could live off of my return (It was huge!!) But I only recieved the first check because there was an error on my federal check. I started to fall deeper into a hole because I was counting my eggs b4 they hatched. That was about 3months ago and I am just now getting out of the debt fast thinking got me into,and I still havent gotten my check yet! The IRS is SLOW!!!. He should re-evaluate.

  7. bostonianinmo says:
    February 20, 2010 at 9:44 pm

    Have to agree. Not smart at all.

  8. CMass Stan says:
    February 22, 2010 at 12:04 am

    You mean he doesn’t need to spend his income on meals, rent, utilities, etc? On $9.25/hr? That’s an awful lot of ramen noodle meals there.

    The only truck your friend will afford w/ his tax return is of the Matchbox variety.

  9. ninasgramma says:
    February 25, 2010 at 11:40 am

    Well, making $9.25 an hour he doesn’t have that much to blow on luxuries. Is he a young person who is being supported by a parent? Some young people feel the need to blow all their money on nonessentials. Some of them grow out of this, some don’t.

    I agree with the others, he isn’t going to get enough of a tax return to purchase a truck. He may get a downpayment, and then he will have to discipline himself to make those payments out of his salary.

    Hopefully, he will live and learn. Better to blow away a $9.25 an hour wage, and learn from his mistake, than wait 20 years and blow away much more.

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