Tax refunds...How to get less back and save more now

My friend’s been bragging to me about how much he’s getting from the government. He’s also pretty excited about the Government Stimulus Package that’ll get him another $600 bucks.

One of the greatest gifts you can give yourself is a debt free lifestyle. I told my friend about my strategy for tax returns and how you should get zero back and save more during the year.

Here’s how it works. Saving money and living debt free is a life-style choice. To begin your life-style choice requires discipline and changing habits. Check out my 7 day strategy to changing a habit.

My friend figured he’d be getting $1,000 dollars refund. First, don’t forget, it’s your money you’re getting back. It isn’t the government’s money it is your money! They had free use of your money for the entire year interest free and you have to fill out papers (better fill them out accurately) and get to wait a few weeks plus to get your money back.

All you have to do is make an adjustment to your deductions for the amount either weekly, bi-weekly, or monthly depending on how you’re paid. If you’re paid monthly you’d make an adjustment of $83.33 (I’d round it up to $100 per month). If you have direct deposit you can have that portion sent to a savings account for you and you’ll have not only $1,000 plus in a year but also a reserve fund and some interest to boot.

It’s a simple way to save money and you can change your tax habit of loaning money to the government and keep it for your self.

Now, for the $600 stimulus package. It’s free found money and it’s yours and the government decided to give it back to you. Take the money and place it in the account you’ve formed for you new tax strategy and by the end of the year you’ll have more than $1,600 saved.

Unfortunately, my friend isn’t saving his money. Yes, he agreed to spend a portion on his credit card bills but wants to spend the rest on a weekend trip.

Like I said before it is a life-style choice. You can deprive yourself of this new found money so you can enjoy yourself more later or you can blow it now like the majority 80% percent who does everything with a herd mentality.

I prefer to be in the 20% percent crowd that has less stress now and more money later on.

David…