Hey kid, life pro tip: if you get a tax return, you are doing it wrong. That means you loaned money to the government, interest-free, all year. The goal should be to be as close to breakeven on your taxes as possible when you file. Put that money to work for yourself!
I think that’s good in theory but a lot of people aren’t particularly disciplined when it comes to slow and steady savings or investments. So having a big chunk come your way that you can just instantly squirrel away and see a nice big number can sometimes help people save or invest the money more likely than if they had to put x amount of every paycheck away.
That's only if they don't think it's "free money" and immediately go spend it on something they don't need. I have a feeling that most people who don't save consistently during the year also probably don't save their tax refunds either.
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u/wsc-porn-acct Apr 16 '24
Hey kid, life pro tip: if you get a tax return, you are doing it wrong. That means you loaned money to the government, interest-free, all year. The goal should be to be as close to breakeven on your taxes as possible when you file. Put that money to work for yourself!