Tax refunds act as forced savings for many people. It’s not a good way to save as the government pays no interest on the savings. The the people then blow the money immediately on major purchases or paying down debt buildup.
Personally, I always tried to make it so that I didn’t get a tax return. I always figured it cost me significant money in cash flow through the year. Always pissed me off to overpay in taxes when I could have used the money for critical things I needed during the year.
I can’t remember the last time I saw a bank pay interest, either. If you want to grow a principle balance, you need to invest it, and that gets real iffy when the demented gameshow host decides to manipulate the markets.
It seems like my 401k dips $5k every afternoon when Trump promises something insane, then bounces back the next morning when he doesn’t follow through.
I’ve never understood why people get so excited about tax refunds, but this provides some context.
Tax refunds act as forced savings for many people. It’s not a good way to save as the government pays no interest on the savings. The the people then blow the money immediately on major purchases or paying down debt buildup.
Personally, I always tried to make it so that I didn’t get a tax return. I always figured it cost me significant money in cash flow through the year. Always pissed me off to overpay in taxes when I could have used the money for critical things I needed during the year.
I can’t remember the last time I saw a bank pay interest, either. If you want to grow a principle balance, you need to invest it, and that gets real iffy when the demented gameshow host decides to manipulate the markets.
It seems like my 401k dips $5k every afternoon when Trump promises something insane, then bounces back the next morning when he doesn’t follow through.