My husband enjoys getting a tax refund. I’m the opposite. I’d rather save my money in an account that gives a return…. no matter how small… than have the government hang on to it for months and months interest-free!
Here’s something you may not have considered: When you get a tax refund, that just means you’ve been loaning the government money interest-free throughout the year!!
It’s a matter of perspective.
Here’s how Dave Ramsey explains it:
“You go to the mall, you buy a nice pair of jeans, but when you put them on at home they don’t quite fit as great as you imagined.
It happens to all of us.
So, what do you do? You go back to the store, return the jeans, and they give you a refund. Then you get on with the rest of your day without giving it a second thought.
Did you bust out a victory dance after getting that refund? Did you throw a party with all your friends to celebrate?
No, of course not. That would be silly. The store was just giving you your money back. That’s what a refund is, after all.”
So, why do we act like kids on Christmas morning when the IRS gives us a refund?
Think about it……
“When the IRS sends you that refund check, they’re just giving you your money back. That’s why it’s called a tax refund. We hate to break it to you, but Santa Claus doesn’t live in Washington, D.C.!”
So, from now on, whenever you get a tax refund, just imagine Uncle Sam saying, “Whoops, sorry about that! My bad!! Here’s your money back.”
During the 2019 tax season, more than 111 million taxpayers received a tax refund and the average refund was $2,860.1 That means the average taxpayer had almost $3,000 sitting there doing nothing in the IRS’s coffers all year! They could have put that money towards hitting their financial goals throughout the year.
That’s money you could be putting towards paying down your debt or building your emergency fund or saving for retirement!
Like I said, it’s a matter of perspective.
Still not sure you want to give up your tax refund?
Click HERE to learn more about what it’s costing you and how to remedy it.
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Until next time…..
Agree or disagree? I love your comments! So please let me know your thoughts in the comment section below.
I look forward to hearing from you!!!
Althea
Helping God’s people realize and achieve their true financial potential, become debt-free, build wealth and give generously!!
PS. Financially, most of us know what to do; we just have trouble doing it. That’s where a coach can help. CONTACT ME for a FREE 15-minute consult.
