My Savvy Life This Week - Taxes, Death & Savings

Benjamin Franklin said "there's nothing certain in life but taxes and death!"  I'd like to add savings to that infamous quote as well. 

I laughed to myself as I began filling out my taxes this weekend.  Ok, so taxes aren't really funny but in my mind I though "Well at least the government gives overage!" (I had to find some humor in it or I'd still be screaming at my stacks of neatly sorted receipts laying in chronological order on the floor beneath my feet.)  I wish I got ALL my money back for sure, but at least I'll get a portion back (and yes I know, it's not really overage.)

In the midst of sorting and adding, my mom called and told me she would owe the IRS this year, as she does every year.  Ugh - how terrible is that to owe them even more money!?!  I always get a refund, but I cringe a little every time it comes.  I know many people use their taxes as a sort of savings account and wait for the check to help buy the car they've been wanting or even pay off a credit card or two.  But really, getting huge returns wastes your money, in my opinion.  Instead of you getting to make interest on the money all year (even though it may be small), the government takes the interest off your hands willingly.  You can change your number of withholdings whenever you want to, so why not adjust the number of dependents in your household so that less taxes are withheld now and you get a smaller return next April (ask HR at work or your CPA for the appropriate dependents to provide you with as little return as possible).  You'll see more money each week in your paycheck and you can safely store it away in a CD or any other investment you see fit to garner a couple extra bucks in your own pocket.  (Ok, probably right here I should say I am not a certified accountant and you can't hold me responsible when the government completely shuts down and takes all your money anyway!)  But, seriously, if you're a couponer like me, think about what you could buy with even a couple extra dollars of interest. (And by serious couponer, I don't mean extreme ;)

You do have to be disciplined enough to actually save your new money from adjusting your  # of dependents.  Just blowing the extra money on frivolous purchases is far worse that letting the government hold on to it for the year.  Make sure you take that extra money and really invest it somewhere safe so that it isn't wasted by you instead of being wasted by big brother.  Either way would just be a waste.