What your W-4’s Mean: Part 2

Tax Refunds - Why I never count on having a large one

Last week Sam wrote an awesome post that simplified the meaning of your W-4’s, so that when your new employer places the form in front of you, you don’t look like a birdbrain as you use ee-ni-meenie-minie-mo to choose which number to place in the blank.

While Sam and I have the same financial end game, we have such different brains that our journeys in getting reaching that final goal are bound to be very different from one another–despite the fact that our decisions and methods are based on the same principles.It is because of these variations in brain function and perspective, that I have a different viewpoint when filling out my W-4.

I prefer to owe a little bit or have a smaller refund when springtime rolls around. I simply do not like the idea of the government holding my money for a year while I could be holding it in my bank and acquiring interest or using it to make purchases/pay off debt. This W-4 strategy requires the discipline to plan ahead (and maybe consult your accountant) and save enough money to cover what you will owe after your taxes are done. Don’t follow my lead if you know you will have trouble looking ahead and creating a little safety net just before tax season. It’s not the only way, it’s just a different way!

One of the best parts of co-writing a blog with a person who is open-minded and waaaaaaaay different from myself is that tunnel vision is impossible, and although our original goal was to teach others, Sam and I are constantly given opportunities to learn something new. :)

Brittany

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