It is tax refund time for those early filers.  The amount refunded this year is expected to be greater than last because so many people are earning less, and are taking advantage of increased tax credits for low wage earners.

Hopefully, none of you nurses fall into that category, although with spouses losing their job, furloughs, and work week cutbacks, income for a lot of families has dropped.

There is a great chart at Turbo-Tax with details about early filers of their tax return. The article also mentions that early filers are much more likely to get a refund-DUHHH!  Why else would you file early-just to get the chance to pay the IRS earlier?????? I hold my check till the last minute when I have to pay.

One area I want to caution you about, is the proliferation of tax refund loans.  This article discusses the hazards of these tax refund  loans in detail.

Is this what you look like, after the IRS has finished?

In summary, the main disadvantage of tax refund loans are the high fees and costs associated with these loans.  This makes the interest rate for small loans, sometimes an effective 200% or even much higher.  Even larger loans, can have an effective interest rate of 50%.  Millionaire Nurses do not borrow money at 200%!!!!!

So don’t do this.  File your taxes, and be patient.

Now what are you going to do with your refund, if you get one?

Millionaire Nurses have a plan for any money coming into the household.  It will be directed towards a savings, or debt reducing goal-or both.   If you have no debt, and you want to blow some of it, then no problem, as long as:

• You are saving 15% of your income in retirement.
• You have an emergency fund of 3-6 months of expenses.
• You have already purchase your Valentine something special (but reasonable)-see this post about Valentines day spending!!!!

So if you have your basics covered, spend away, save it for a vacation.

But HAVE A PLAN!

If you know someone getting a tax refund-hit the share button below-Thanks!