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Published Jun 4, 2023

065R | Don't Waste It

Explore revolutionary tactics in credit card management, tax optimization, and community financial literacy with Brad Barrett and Jonathan Mendosa, as they unveil smart solutions for debt reduction, impactful tax planning, and innovative college expense hacks.
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Episode Highlights

  • Tax Withholding

    Understanding tax withholding is crucial for optimizing your financial outcomes. and discuss the differences between tax liability and withholding, emphasizing the importance of adjusting your W-4 to avoid giving the government an interest-free loan. They highlight that bonuses are often withheld at a higher rate, which can be misleading if not properly understood 1.

    Bonuses are withheld at this, quote, supplemental rate. It's the IRS specifies this supplemental rate and it's 25%.

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    By understanding these nuances, you can better manage your finances and ensure your money is working for you throughout the year 2.

       

    Tax Planning

    Effective tax planning involves more than just filing your return; it requires strategic thinking about how your money is managed throughout the year. explains that receiving a large tax refund is essentially giving the government an interest-free loan, which is not optimal for financial growth 3. Instead, he suggests adjusting your withholding to keep more money in your pocket throughout the year, allowing you to invest it and potentially earn returns.

    You don't want a big refund. It just means that you just miscalculate it really.

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    Additionally, shares a practical tip on dealing with broken items by contacting manufacturers, which can save money and extend the life of your purchases 4.

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