Patience = Savings

Patience = Savings

“Expect the unexpected to happen”. If you  read my blog regularly, then this is not the first time you have read this. Still, it is understandable but unfortunate that several people are not prepared for the unexpected. While there is another group of people who may be robbing Peter to pay Paul before and during the holidays. They find it necessary to get Tax Refund Advances as early as December or January and even February to cover their spending habits.

Both groups are due tax refunds and will get them, but they choose to get a Tax Refund Advance to get their refund in 24 – 48 hours instead of waiting the normal amount of time. It can take up to 14 days after returns have been filed to get refunds via direct deposit. Barring an emergency, being patient could possibly save money for taxpayers who use Tax Refund Advances and loans.

How is that since Tax Refund Advances are free?  There are alternatives to using Tax Refund Advances that would save money. Again, how is that since Tax Refund Advances are free? Tax Refund Advances are free but Tax Refund Advance Loans can cost between $23 and $163 depending on the amount and term of the loan. Also, it costs an average of $147 for taxpayers to have their taxes prepared by the companies that offer Tax Refund Advances and loans. Those same returns could be prepared for free or for less than half that amount using online software or using a non-profit that prepares taxes for free, if you are eligible. The easiest way to save money is to not spend money on things you do not need.

If you really need the advance or the loan, then it can be a blessing to get either one. If you use the advance or the loan to finance your poor money management skills, then you may want to consider learning how to budget and to save for emergencies. These practices will not only help you to learn how to manage your money better but can also help you to save money on your taxes. There are so many benefits of learning how to manage your money. Hopefully, you will take advantage of them. All the best.

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