California refund and shopping

After stating it would hand out IOUs to taxpayers due refunds, the state of California is finally paying out the money it owes. I received my tax refund last week after filing at the end of January. It was about time!

I already adjusted my withholding so that hopefully I will be due little if any refund next year. I used to like getting a Federal refund because I always used the money for something constructive like paying down loans but I believe I am now financially disciplined enough to put that money mind game away and put my money to good use as soon as I earn it.

Speaking of putting money to good use, I actually went out and spent some money. My wardrobe was looking pretty raggedy; not a single outfit fit for being seen in except by supermarket clerks and people who already know and love me! $150 at Old Navy bought me enough clothing to make several nice outfits. I bought the clothes in colors which match accessories I already own so I didn't have to buy any accessories. Two good things came out of this experience besides refreshing my wardrobe and having clothes I am not embarrassed to be seen in: 1) Spending the money was stress free because I have a savings fund for clothing and 2) I was reassured that I have not become such a tightwad that even sensible, planned, justified spending feels wrong. The whole point of being careful with money is to enhance my quality of life, not just to have more and more money. I don't want to end up one of those wacko bag ladies who live like beggars but have millions in the bank when they die.

My frugality goal is to be logical, not pathological.

The title of this post seems to imply that I spent my tax refund on shopping. Not so. The refund is a few thousand (my first full year with mortgage deduction plus changing jobs plus fear of not withholding enough = way overestimating my withholding) and I'm not sure what to do with it. Pay down mortgage? Home improvement? Savings? For now it is going to be parked in a savings account. I'll decide what to do with it later.