Taxes

Since our country's birthday just passed, I thought it would be interesting to look at taxes.

Taxes are painful and no one likes to have to pay them. Historically speaking, our taxes have dramatically increased. There is tax on just about everything you can think of.

So right now for the majority of people there are; income tax, property tax, sales tax, payroll taxes, social security taxes, etc. The list goes on and on.

So since we are all dying a slow death by taxes, let's talk about how we can be more proactive.

First thing is first, think about how much money you get for a tax refund every year. Are you getting several thousand dollars back? Stop here, getting a huge refund from the government for your overpayment of taxes is a big mistake.

Some people might say, "but I love getting a huge refund every year!" Of course you do, who wouldn't want to have a big chunk of money? The problem with this is, this money was yours to begin with.

When you overpay your taxes every year, you are giving a free loan to the government. Ideally, you want to have a refund of $0.

Why do you want a $0 refund? When you have no refund it means that you are getting your money throughout the year. If you have your money, you have the ability to make your money work for you.

Why not invest that overpayment in something that will net you interest every year, instead of waiting an entire year to get your money for the government.

Before you dramatically change how you do your taxes, always consult with your accountant or tax attorney.