I finished my taxes over the weekend and I discovered that in 2007 I made a whopping three dollars more than in 2006. Three dollars is three dollars, right? Not so fast, according to this page, I actually made an inflation-adjusted 5% less in 2007 than 2006. Good times for grad students!
Actually, it's not quite that simple. In 2006 I was paid more for a higher-earning TA position (66% vs. 50%, for those of you in-the-know), and in 2007 my investments covered that difference. So unless the economy collapses (it's possible!) I can count on my investments continuing to pay off in the long run.
TurboTax told me that I can expect a $600 check from the Treasury. I am sophisticated enough to realize that money is never free. As the government is already running a huge debt, this largesse is just more debt. And who gets to pay for this, why, I will! Depending on the next few congresses and presidents, it could be sooner or later, less or more, but in the end the $600 is not going to be free to me.
So, I give to my dear readers, a list of what I can do with Uncle Dubya's Money:
- Save/invest the money to prepare for the eventual increase in taxes that has to come.
- Buy some more RC helicopter stuff. I haven't flown my helicopter since December mostly because I've been forcing myself to focus on school. But also to keep me from spending too much money on it. With this money I could upgrade the parts, buy a bunch of spares, or buy a whole new toy! Like a nitro-power RC car.
- Buy a flat-screen television. But then I'd have a nice TV, and I could watch what on it? I'd have to pay for cable or satellite, or buy a Blu-Ray player.
- Convince Melissa to use her $600 with mine and we could do something really fun, like a trip to Europe. Except then we'd be spending all our money on either airfare or in a foreign country, which isn't the point of the money, right? And what with today's weak dollar $1200 buys approximately a nice dinner in Europe. At McDonalds. Maybe Burger King.
- I think now is the time to enter the housing market. The $600/$1200 could go for a down-payment on a nice condo here. And in a couple years we can sell it for huge profits due to the raging San Diego real estate market. A good idea? Maybe not.