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.
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.