75% of Americans will receive a tax refund this year. Many withhold more money than needed from their paycheck intentionally so they can receive a refund, and the average tax refund this year will be around $2800 – that’s an additional $233 a month of income many are missing out on!
Taxes are a way of forcing themselves into saving money in order to pay off debt, save for vacation, etc.
The only problem with this logic is that, while you’re letting government to keep your money “interest free,” you continue paying monthly interest on your car loans, credit cards, student loans, and other debt. You’d be much better off designating those $200 a month to eliminating debt!
Today's tip brought to you by Mvelopes and Money4Life Coaching.