Do you like to give interest free loans? Of course not, but the majority of people do that every year. It’s called a Tax Refund. A tax refund is money you essentially loaned to the government for free! If you get a tax refund, that means too much of your money was withheld from each and every one of your paychecks throughout the year. You should adjust your withholding so that either you get a $0 refund or as little a refund as possible without underpaying. With that extra money in each of your paychecks, you can fund your emergency fund, have more of your money for budget items, further fund (or get started on) retirement options, save for vacations, your choices are endless. If you get a tax refund of $1000 a year, that’s approximately $83 of YOUR money you loan to the government each month! You can adjust your withholding by filing a new W-4 to keep your money in your pocket.