DH and I are estimated to get about 2500 back in our refund. Our savings acct is getting kinda low so we were wanting to put some into that. We are also in need of a few big purchases: Tv, microwave, shower head. However, we have about 10-12K in debt that i want gone. How should we divide up our tax refund? Should we save most, buy what we need and then put the rest towards debt or what?

Can I ask why you "need" a new tv, microwave etc? And are you a 2 income family - kids?

I would make sure you have a least $1000 in savings first for emergencies and then put the rest towards your debt. I would save up for the TV, microwave and shower head as they are all non emergency items (although your dh may beg to differ ).

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I agree w/ KathrynHannah...

$1000 in EF and debt comes first before any "luxury" items.
If you really want to be outta debt this is how any extra $$ should be allocated.

I agree. Put some in savings and the rest towards debt. Save up change and then go to thrift stores to find a t.v. and microwave - should be able to get two that work very well for less than $50 combined. Once debt is paid off, then you can look for more expensive models like you want.

Hi, sounds like lots of women here having been reading up on Dave Ramsey! I agree with their advice. $1,000 Emergency Fund (because you know as soon as you get money, something always comes up!) and put the rest towards your debt. As soon as you get your debt paid down, you'll have all that extra money to save towards those purchases.

Jiller

All the items you mentioned are really luxuries. Well, except if the shower head is just not functioning anymore; that may be a required purchase.

I would pay down that debt and first save about 1,000 of it for emergencies. Keep paying that debt off this year, and maybe next year, you can use some of your return for luxuries! You'll have something to look forward to and work toward then.

I agree, I don't think with 10K+ in debt you should even be thinking about buying a new tv! Sorry, but you will never get out of debt that way!! I'd put the 1,000 in savings and the rest towards your debt, no spending!

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A woman is like a teabag. You never know how strong she is until she gets into hot water.-Eleanor Roosevelt

Buy a new shower head- for 2 reasons. It is the less expensive on your list and you will feel better about at least getting something. 2nd- if your shower head is not working properly you might be spending more $ on the water bill.

Then the rest goes to pay off your debt- Good luck

Buy that new shower head, put $1000 in an EF and put the rest towards getting rid of that debt.

You'll feel so good when that debt is gone!!

Try to start saving for those luxury purchases, like the TV and microwave. Wait until you have enough saved to buy them outright and not on credit. You do not want to add more to your debt with those items.

Good luck and congrats on the refund!

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SAHM of 4

August food budget (groceries/take-out): $500.00/$75.00
Total spent: $238.97/$14.12

July budget/spent: $500.00/$650.00