To many people getting a tax refund is as if they’ve won the lottery (not that i advocate playing that). They behave as if it is new money. Wake up! this is your money that the government has been using free of any charge from you.
The worst part of this kind of thinking is when someone goes out to borrow money in anticipation of a tax refund!! If you have waited for months and all the while making excess payments to the Taxman, why can’t you wait a few more weeks to receive YOUR money back.
Not many peole will confess to have done this but the truth is your impatience could cost you more than you realise. Refund anticipation and payday loans are usually advertised heavily at this time of the year. What the advertisements don’t tell you about are the fees and steep interest rates associated with these short-term loans. Also, don’t forget this is a loan; if the Taxman turns down any deductions or credits on your return and your refund becomes smaller than you expected, you will still be responsible for the full amount of the loan.
Don’t spend your refund until you actually have the money. It’s tempting to spend your refund as soon as you know it’s coming, but, there are no guarantees in life! Be patient and wait until you have your money in hand before you actually spend it.
Niyi Adeoshun
Money Mangement Coach
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