It’s tax refund season! You know what that means, the government took your money that you earned for a whole year, and now has decided to let you have it back, interest free! Wow they really are looking out for us aren’t they… Not really.
YES IT IS A REFUND
Everyone gets so excited every year to get THEIR money back, it blows my mind when people come up to me asking how much I got back. Then we compare amounts, and when they find out that most of the time I had to pay the government money they look at me like I’ve made a horrible mistake. But let’s think about this, I changed my withholdings to keep the maximum amounts. That means that I can put what I would have had taken out in taxes into a fund of some kind, then when it comes time to pay uncle sam the NECESSARY AMOUNT (no more no less!), I take it out of the fund and use the interest gained as a cushion to be compounded every year. So in the end this person fought tooth and nail to get whatever money they could back, looking in every loophole and tax bracket they could. While I literally made money on the money every year, and never had to worry about paying too much. Sounds like a win to me…
WHAT TO DO WITH THE REFUND?
Well you can go out and get that new tv you’ve been wanting, that new gaming system or a down payment on a car you can barely afford. But what do all of these things have in common, they’re liabilities! A liability is something that you spend money on, then you spend money on and keep spending money on it, the liability never yields anything of value to you! Instead how about you take time on the internet to invest in something that will actually help, go to a seminar on how to start a business online, look into real-estate. I wouldn’t recommend buying stocks though, I did that one year and it was a lesson well learned, it takes much more thought and consideration than buying something that will give you knowledge or income.
START A NEW HABBIT
Look at things you buy from now on as an asset (money maker) or a liability (money taker). Learning and applying these two words will yield incredible returns in most areas of your life! And the sooner you can fix your taxes to change the withholdings to keep the money that’s YOURS, the better. Just go to your HR person and ask to have your withholdings done so that you keep the maximum, this is easiest if you’re on a salary because you can look at your taxes from last year and just invest that amount monthly. Then just sit back and enjoy the interest earned and knowledge applied 🙂
Have a great day!