Tax returns

ok ok ok... I just got an e-mail about tax rules. The opening paragraph was all about how if you got a refund, it's becuase you gave the government a tax free loan. I am so sick and tired of hearing this. Yeah you gave the government a loan, but you where also forced to save that money over the course of the year. Lets think about this in a real life situation, not some perfect scenario that Money Magazine comes up with.

Let's assume you get a refund of 1000, and you get paid every 2 weeks. If you hadn't given the government that interest free loan, you would have gotten 38.00 added to your biweekly check. 38 bucks... Who is realistically going to take that money and stash, and who is going to spend it on a date, a couple CDs, a pair of Levis... most people. Even those who have a budget and are good at saving are more likely to spend the 38 than stick it in the bank. According to Forbes and Money and all these people who freely dole out useless advice, you shouldn't put that money in the bank because bank interest doesn't even keep up with inflation. TRUE. They say you should put it into the stock market. YOU CAN'T BUY A STOCK WITH $38. Commision is 20 bucks, that leaves you with 18, and you shouldn't spend more on the commission than you do on the stock... Forbes told me that.

Now, lets say we put that money into the governments pocket for 12 mnonths and let it accumulate. We get $1000.00 in April. Instead of overlooking $38.00 we see $1000 and think "gee this is a lot of money, i should really invest this."

So shut up Forbes, Money, Fidelity, TD, Charles... if i'm saving 100+ a check by not overpaying taxes, then we'll talk. until then, I'm better off getting the lump sum at teh end of the year.

For Starters

Coming soon...

Life stories, lessons, and thoughts. Every name is changed, every story is true, every thought is mine. I'ts not chronologic, but some names will repeat. Some stories will relate to others.