Comments on: Tax Refunds Are Good For Most People, Because Most People Can’t Save

By: physical therapist

physical therapist — Mon, 28 Jun 2010 07:53:54 +0000

found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later

By: The Yakezie Challenge Carnival #8 – Tax Day Edition! | MyMoneyMinute.com

Mon, 19 Apr 2010 08:51:35 +0000

[...] Financial Samurai — Tax Refunds Are Good For Most People, Because Most People Can’t Save [...]

By: The Katana: Holy Crap! Taxes Are Due Soon! | Financial Samurai

The Katana: Holy Crap! Taxes Are Due Soon! | Financial Samurai — Sun, 11 Apr 2010 09:03:18 +0000

[...] This is the first year where I actually owe money to the government and I’m not too pleased. For all intensive purposes, I should be happy that I got a free multi-thousand loan for the year, but it just feels off. Your typical personal finance blogger will argue that it’s stupid to celebrate a tax refund, but I’m telling you to go right ahead. Tax refunds are good for most people because most people can’t save for cookies! [...]

By: Single Mom Rich Mom

Single Mom Rich Mom — Sat, 10 Apr 2010 12:45:27 +0000

I received a $9700 refund one year. That was too painful, so I got less deducted from my monthly pay. Boo on me for not requesting it prior to that.

Part way through the year, I usually do a simulation on my old tax software to see where I’ll come in at for the year.

One thing that I’ve done a couple of years is immediately put my refund into my RRSP as a contribution when it comes in (say around March or April) and then top it up to my max sometime around October. Fortunately in 2008, I didn’t do that in April, I threw the whole thing in in October. Just sheer lucky timing.
Single Mom Rich Mom´s last blog ..Do I REALLY need to work?

By: admin

admin — Sat, 03 Apr 2010 00:59:03 +0000

Ah, OK, yes. I love the mortgage tax shield. Shields up! It’s a good feeling, especially if you can comfortably afford the house! Congrats!

By: RainyDaySaver

RainyDaySaver — Fri, 02 Apr 2010 23:05:21 +0000

Normally, I get a small refund, which is fine with me, but this year we’ve got the biggest deduction of all: a new house. We didn’t own it all of 2009, so I’ll have to see what the true numbers are next year and then adjust our withholding accordingly.
RainyDaySaver´s last blog ..Fix-It Friday: Our Home Improvement Wish List

By: admin

admin — Fri, 02 Apr 2010 21:07:04 +0000

I don’t like the idea either Jay, but I face reality. The reality is most people can’t save for cookies. And this year, I owe several thousand, and that just sucks.
admin´s last blog ..Punctuality Breeds Credibility – Stop Being Late!

By: admin

admin — Fri, 02 Apr 2010 21:05:44 +0000

I’m sure there’s a way Daniel-san, but I have no idea how to do that!

I have co-workers who purposefully underpay, or ask for an extension b/c they owe too much in taxes. The penalty is less than the savings/earnings they get so it’s worth it to them!
admin´s last blog ..Punctuality Breeds Credibility – Stop Being Late!

By: admin

admin — Fri, 02 Apr 2010 21:03:58 +0000

I don’t like a lot of things about the gov’t, but I’m willing to forgo an extra $12-24bucks of interest income a year. Keep that money away from me so that I adapt to spending less money a year all year.

Good point about unemployment halfway. However, hopefully one is used to the lower amount of income and has saved accordingly.
admin´s last blog ..Riding Rocketships For Greater Success

By: jay

jay — Mon, 01 Mar 2010 19:01:22 +0000

I dont like the idea of overpaying the government then later getting the difference. There are lots of options out there for individuals who cant save like setting up an automatics allotment to mutual funds or a reitrement account.

By: Tax Refunds: Does Size Matter? | MyMoneyMinute.com

Tax Refunds: Does Size Matter? | MyMoneyMinute.com — Mon, 22 Feb 2010 10:27:54 +0000

[...] The majority of us are financially undisciplined. Until you get disciplined, a big refund can protect you from… you. For a great analogy of this argument, check out an article written by Sam at Financial Samurai — Tax Refunds Are Good For Most People, Because Most People Can’t Save. [...]

By: The Katana: Where Experiences Matters More Than Things | Financial Samurai

The Katana: Where Experiences Matters More Than Things | Financial Samurai — Sun, 21 Feb 2010 09:02:36 +0000

[...] “Income Tax Refund: Good or Bad?” from One Money Design. Nobody can eat just one cookie, hence a refund is good.* “Realistic Expectations For Making Money Through Blogging” [...]

By: Income Tax Refund: Is It Good or Bad? | One Money Design

Income Tax Refund: Is It Good or Bad? | One Money Design — Wed, 17 Feb 2010 03:05:48 +0000

[...] the further the point on the last bullet, I read an article by Financial Samurai on why tax refunds are good for most people because people can’t save. He dares to go where many have not been willing to go in discussing the very idea why he thinks [...]

By: Dollars Not Debt

Dollars Not Debt — Fri, 05 Feb 2010 02:56:56 +0000

As painful as it is to give Uncle Sam the interest free loan, it is the best thing for 90% of Americans. Lets face it, for most the money would be gone anyway. At least it is a forced savings mechanism that gives you an opportunity to be wise just once. What you do with your refund mainly determines if it is good for you. In my blog i discuss my debt free path.
Dollars Not Debt´s last blog ..Do You Want to Be Wealthy? Three Very Simple Rules to Make You Rich

By: Roger

Roger — Mon, 01 Feb 2010 02:50:20 +0000

Hum, interesting topic. I’ve always heard to make your refund as small as possible, and I do think it makes sense if you are good at managing your money and will use the larger paychecks you receive to increase your investing rather than your spending. That said, for most people, I think you’re right, FS; if they’re getting a $2400 ‘bonus’ once a year, it’s more likely that at least some of the money will make its way toward financially beneficial goals (put into an emergency fund or pay down a solid chunk of debt. Of course, most people reading your blog probably fall into the good financial manager category (or should once you whip them into shape), so we’re back to the first argument.

Short version: I can see either method working, depending on how your mind works.
Roger´s last blog ..Net Worth Update: Another Month Gone