04/15/2024
So you filed your federal taxes - Congratulations! Did you get a refund? Wonderful! Now think about what you could have done with those extra dollars over the past year...if you overpaid taxes by $100/month, you could have:
1. Saved at least $650 in credit card interest (assumes a $3000 balance at an average of 22% interest rate, paying $100 more than the minimum payment...many credit card rates are much higher)
2. Invested these dollars in a high-yield savings account earning ~5%, a CD earning ~6% or in an index fund earning ~9%, for your future self, retirement, college savings or that summer vacation.
The money you got back in your refund wasn't invested by the federal government, so with inflation, it's actually worth less than what you paid. But if YOU had control of those dollars, you could have grown your net worth in the ways that are best for you.
The next step in making sure you're paying only the amount required for federal taxes is to complete this form: https://apps.irs.gov/app/tax-withholding-estimator/income-and-withholding/. This is a very helpful tool and the best way to ensure you hold onto to all of your hard-earned dollars.
Best wishes for your wealth! 🤓
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