Avoid tax refunds. Getting one usually indicates poor tax planning. It means that you have overpaid your taxes throughout the year. What's worse, you're not even collecting interest on the funds you're "lending" to the IRS. Adjust your withholding at work so that less is taken out each payday.
Absolutely right. I've had a lot of friends who intentionally paid more withholding tax than they should have so they could get a big tax refund. I told them, that is just plain crazy. You get no interest on it; why not open a savings account and put your "extra" cash in there? At least it will be drawing a little interest, and the gubment won't be tossing it into the pork barrel. Set an annual date for withdrawal, as needed, and don't touch it except on that date. And even then, only withdraw what you must have. You can build up a nice little retirement account like this.
What you say is very true, but for someone as undisciplined as I am it is a sure way to save money and believe me that few hundred sure comes in handy in March or April for car repairs or other things you normally can't afford like tires or Other rather large purchases.
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