As many of you know, 2013 was my first year of self-employment. And for the most part, it’s been awesome. I made plenty of money, did all kinds of fun jobs, and had my writing featured in places like Lifehacker and Fox News. It’s been epic. But, despite all of my successes, I managed to roll out one epic fail. It’s confession time, folks, and I share this shameful admission with a heavy heart.
So here it is…..*cue tears*
I overpaid my taxes and gave the government an interest free loan.
Now, simmer down. I know you’re angry and upset, and I totally get it. If you need to leave and come back later, it’s cool. In fact, I appreciate the extra traffic. Have a latte or something. Seriously.
How I Overpaid My Taxes
Let’s first start off with the reason I let this happen in the first place. The only explanation I can come up with is that I have no idea what I’m doing. I knew that I would have to pay a ton of taxes so I just sent in a third of everything I earned. Further complicating matters was the fact that I owed money several years ago and absolutely hated it. I mean, it made me want to set H&R Block on fire as I left the building in tears. Ever since then, I have tried not to owe money at tax time. Sue me.
The good news is that we’ve changed our strategy for this year and will no longer be sending in so much cash. In a way, 2013 was just my practice year. It’s all good. Live and learn, am I right?
How Would You Spend $6,500
Still, the damage is already done, and I’m due to get a tax refund of a little over $6,500 in the next few weeks. In a way, I’m slightly angry with myself. On the other hand, I’m like, “Sweet, I’m getting $6,500 back.” Lame, I know. Anyway, I do need to come up with a plan. We decided last year that we didn’t want to let our emergency fund swell like we have in the past, so I need to find a place to make this money work for me.
How Would You Spend $6,500?
Whether it came in the form of a tax refund, as part of a structured settlement, or as an inheritance, we would all have to do something with $6,500 bucks, right? How would you spend $6,500 if it landed in your lap? Here are the ideas I’ve come up with:
- Vacation Fund- I typically just finance our vacations as I plan them, but I’ve always wanted a dedicated vacation fund. $6,500 is a little more than we would need since I finance most of our trips with credit card rewards, but we could use part of it.
- Retirement- I’m so boring. It would be so easy just to plop this money in a Vanguard account and pretend the whole thing never happened.
- Taxes- This probably sounds crazy, but I’ve considered using the tax refund to pay more taxes! What a novel idea, right? $6,500 would be enough to pay my first installment of quarterly taxes that’s due on April 15th, plus some of the next quarterly payment (It depends on how much I earn).
- Our Second Website– Our second website is up and running and I desperately need to get more content up on it. With that being said, it might be time to make a financial investment in some additional writing.
- Gambling in Las Vegas- You know what would be better than $6,500? $13,000 of course! I told you that I’m heading to Vegas in mid-May for a weekend trip with friends. I’m thinking roulette, no? (I kid, I kid)
So, how would you spend $6,500? What would you do if you were me?