That’s right…I said it!
I triple dog dare you to not touch your tax refund.
I’m taking it back to the elementary school days. I’m that kid in A Christmas Story that goes straight from the double dog to the TRIPLE dog dare. But instead of daring you to do something crazy – like sticking your tongue to a frozen pole (oh to be young again…), I am daring you to do something positive & audacious. “Are you out of your mind?” I can hear the responses. Isn’t receiving your tax refund like a free pay day/bonus?! Not so fast…
This is why I dare you not to touch your tax refund:
1. What could you possibly want right now in exchange for more money in your future?
That’s right. It’s hard to tackle this, because our society is so based on buying NOW, needing this now, get this now. I understand – we are completely bombarded with tailored ads of products & items that scream “buy me.” Why do they have to know my browser history and shove it right in my face even after I’ve left the previous page…Need some more convincing & hard factual numbers? Check out Millennial Money Man’s post: Tax Refunds. You’re doing them wrong. He’s got this down on lock, and if you need anymore convincing than what I can do – this is definitely the place to go.
2. Wait, wait – make that thousands of extra dollars for your retirement
Hot dang, this is getting good! So this is the idea that you have such a great amount of determination that you save your tax refund year after year, versus spending it. Even with a modest, estimated 5% return – those tax refunds you save now can equal big bucks in the future. Want to know exactly how much with your own determined numbers? Try out the Investor.gov Compound Interest Calculator. This should give you a great visualization & indication of what the money you receive now could be in your future!
3. You do not need the money now
I’ve got so much faith in you that you do not need to touch a dollar of that refund that’s been put into your account! Remember that study with the kids & the marshmallows…yes, delayed gratification. It’s a wonderful thing! Act as if this month is just a normal month of receiving your regular income with the idea that if you set aside your tax refund (either in savings, retirement fund, IRA, etc.) that it will be a larger sum in the future. You’ve got it in you. Here’s even a virtual high five to get you started (or fist bump, whatever you’re in to).
4. Your future self will be entirely grateful to you
And who wouldn’t want to impress their future selves? I mean, I know we all have an insane amount of goals. Think about who we are now, and where we were 5 years prior. Don’t you wish that person 5 years ago did just a little more, instead of kicking yourself in the shins in the present? Yeah…me neither (not…). Surprise your future self! I know we would all be incredibly grateful in our retirement that we had that extra money to fly and see our grandchildren, travel to exotic places we did not know existed, or satisfy that Bucket List item of visiting every craft brewery & coffee shop in the U.S. (heck yes, that is one of my Bucket List items).
5. Your willpower will impress the masses
So…remember that one time you & some friends made a pact to do an all liquid diet and shoot, you all gave in to Sunday morning brunch of croissants, jam & mimosas (wait, that’s not a part of the liquid diet)? But wait…there’s Stacey in the corner NOT eating anything. She’s sticking to the all liquid diet, while all the rest of us faltered! She’s got some willpower & we all commend her for that (maybe there’s even a dash of jealousy too?). Or, fellas – maybe you’re all at the gym getting your work out on when all the sudden Billy over there is about to max out his bench press at 300lbs. for the day. He’s got that willpower, and now you all want to try it too. Alright, so willpower can be applicable to so many situations – so why not with money too? All of the sudden YOU are able to strictly save/invest that tax refund, while others spend it in a snap ($1,500…POOF & it’s gone)! That’s right, the masses are going to look to you & get inspired (maybe I am thinking too highly, but you’ve gotta believe you’re going to inspire a couple people). It’s kind of like those questions: “What would you do with a million dollars?” Most people would have answers such as spend, spend, or spend. But you, my friend, have that awesome answer of “I would save it (or invest it).”
Have I convinced you yet?
A: Yes, I can’t wait to save my tax refund!
Okay, so if you’re answer is A: YOU are incredibly awesome & I wish I could give you a hundred high fives (not just the one I offered above). If you answered B: that’s okay! I still like you. Just take some time to at least sit & think on it. Mull it over. I’m still triple dog daring you to not touch your tax refund, though.