Dave Ramsey says: Change withholdings, keep more money in pocket now
I just filed taxes, and it looks like I’ll get a pretty big refund this year.
A friend of mine told me I should adjust my withholding, so I don’t get a refund.
This seems pretty dumb to me. Why would I change my withholdings when I’m getting money back?
The only reason you’re getting a refund is because you had too much taken out of your paychecks in 2017.
Let’s say your refund is $3,500. Basically, you loaned the government $3,500 of your own money, interest-free.
A refund isn’t a gift or reward, James. It’s your own cash that you get back because you paid in too much during the previous year.
In your case, that adds up to almost $300 a month!
Instead of loaning the government money that you worked hard to earn, wouldn’t it be a better idea to keep it in your own pocket?
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