I constantly fuss at my wife because she wants to have a fairly large ($3,000+) income tax return every year. Knowingly receiving a big tax refund each year is a big mistake that many workers make. I try to tell her that we are simply giving the federal government an interest free loan by doing that, but she simply doesn’t listen.
It is always a constant struggle to get my wife involved in financial planning for our family. She simply isn’t interested in money and finances and leaves that portion of our lives squarely on my shoulders for the most part. So, I got to thinking. Does it matter if we get a big tax return at the end of the year? Maybe it doesn’t matter after all.
A Big Tax Return Is Forced Savings
Like paying off a mortgage, overpaying the government in taxes every month is a way to force you into a type of savings plan.
