“Couldn’t afford a new car in December?  Take your tax return to Bad Decisions Car Dealers and see what you can afford now!”  So goes the local car dealership ad reminding everyone that the money they get back from the government needs to be spent as soon as possible.  This commercial is one example of many.  The cell phone company I worked for in my previous life referred to February/March as “second Christmas” because the tax refunds would find a way back to the stores for a phone upgrade.

First, a caveat – I don’t know your financial situation.  We are all individuals and we all have our own take on personal finances.  It’s possible you bring in way more than you need, you save 30% of it, and you are reading this while you wait to board a plane for a weekend in Paris.  With that said, my advice to you if you encounter someone telling you to “spend your tax refund here”?  Run.  I know this seems very Scrooge-like, or just un-fun, but your best option for the return of your money from the government is to save it.

Yes, save your money.  We could go through plenty of statistics showing how little Americans are saving each month, but my bet is that you already know the truth.  We aren’t saving enough of our take-home pay.  No judgment here, just reading the numbers for what they are.  If a person wants a new car/iPhone/super-gadget, they won’t be getting the slow head-shake from me.  My hope for that person, and everyone reading this, is that at least 10% of their income is being saved in a secure spot.

The 10% savings rate is the foundation of the Perpetual Wealth Code™ (PWC).  We’ll post a more in-depth description of the PWC and how you can use it to your advantage in the future.  In the meantime, feel free to contact me with any questions you may have.