Getting A Tax Refund? You Must Read This! 

Last year the IRS issued $125 billion in tax refunds! Imagine the boost that gives the economy when sales and deals from online and local retailers proliferate all marketing mediums. Every TV commercial, radio ad, billboard, and social media outlet
give way to advertising targeting “tax refunders”.
This post is to challenge those that receive a tax refund to do something different. Tax refunds have been viewed has a systematic way to keep people in poverty. I do not disagree with that statement, but this post is not intended to discuss that point; I simply wanted to bring that to your attention. This post is to help you take the tax refund and use it to catapult you out of poverty. The vast majority that receive tax refunds are in fact in poverty.
The issue (one of them) with tax refunds is that they enable people to be careless with their money. Consider how many people will use their tax refund to catch up on bills that got behind during the holidays, or pay off the refund loan advance with interest, spend it on things they really don’t need such as getting a new car, customizing their current car, getting new clothes, electronics, or other items that don’t add any value to their net worth (more on net worth in future posts).
Imagine if for a moment that the average refund of almost $3,000 was invested in stocks, real estate, a business endeavor, an annuity, life insurance, or retirement plan for the past 5-10 years. If you invested the $3,000 refund every year for 5 years, and left it alone, it would grow well over $35,000 in 10 years and almost $80,000 in 20 years! It takes discipline.
Tax refunds can be advantageous to those who use it wisely. If you’re not ready to invest or start your business, there are other areas to focus on such as debt. If you have any high interest debt, use your refund to pay it off. I’ve known many people to pay off student loans, auto loans, and credit cards much faster by using tax refunds. It takes discipline.
A common mistake people make is to use a tax refund as a down payment to get a car or house/apartment. Be weary of this because you’re using short term increase to sustain long term obligations. In other words, if you don’t have the extra money to afford it without the refund, then don’t buy it. It takes discipline.

A large portion of refunds well be issued within the next 7-12 days, use it wisely. Take this year and do something different, something that goes against your normal habitat and routine. And when the holiday season approaches later this year, buy only what you can afford; don’t pay interest on tax refund advances.

You, your family, your community… your life, deserve a prosperous, self-sustaining, and financially free YOU! Make a decision. It takes discipline.

David Campbell

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