You Cannot Multiply Wealth by Dividing it.

“You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else.  When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is the beginning of the end of any nation. You cannot multiply wealth by dividing it."*

*  Adrian Rogers, 1931*

How to get Two Tax Refunds In One Year

Sounds tantalizing, doesn't it? Two tax refunds?! My tastebuds begin to buzz and I can smell the smoke coming from my pockets as they almost start to burn just thinking about receiving two tax refunds in one year. Is it legal? How can it be possible?

This year, I received my two tax return refunds in the same week. First, I received my 2009 tax refund via direct deposit, and second, my 2008 tax refund deposited back into my savings account after sitting in a fat one year certificate of deposit. Okay, so that sounded a bit anticlimactic, but when I look at my savings account it just feels awesome. My opportunities this year are two fold that of last year. Many people ask the question, "What should I do with my tax return?" The answers are varied and range from blowing it all on fun and gadgets to paying down debt. Some people already have mentally spent their tax returns even before they hit the bank.

Last year, I had the unique opportunity of delaying my gratification of receiving my 2008 tax refund in exchange for a special one year CD with a fat rate of 5.7%, available only through my local credit union. Back in 2005 my online savings account was earning me 5%, but in 2009, it was hardly even 1%. The offer of 5.7% was a steal of a deal. The conditions were that the CD had to be funded with your tax return refund. I was so glad that I didn't already have my refund spent mentally or on credit! 

How Should I Spend My Tax Return?

Around tax time a lot of people start asking the question, "What should I do with my tax refund?" If you feel lucky enough to be getting a tax refund, or your personal savings has been piling up this year, you are not alone. 


The markets were undeniably devastated in 2008. The precipitous fall in stock prices scared people so bad that they fled the market in droves. For many people, they looked outside and saw that it was raining and decided that it was finally time to start saving for a rainy day. The rain fell so hard that the personal savings rate, as compiled by the Bureau of Economic Analysis, started growing at a rapid rate. Consumer spending during 2009 has also dropped considerably. 

Is this a good thing that Americans are saving more? Maybe. With all this extra cash you can finally build up your emergency fund, or boost your other savings goals. But are Americans really saving more – or just momentarily spending less? What is happening to those savings? If the extra money is just sitting in your checking account, it will likely float away when the economic weather improves. Stashing large sums in your savings account, besides for an emergency fund, isn't very practical right now, either. Your money should have a purpose or a goal. Make money work for you! If it is for retirement, get it back out there into that crazy rollercoaster stock market. Missing out on 2009 gains in the stock market only served to exacerbate the losses from 2008. 


Do you have debt? Get to work paying it down if it is an adjustable rate. Look into getting your debt refinanced, too. Interest rates are lower now than they have been in years. The future of interest rates will be going up only too soon. Now is the time to start a Dave Ramsey debt Snowball not a new LCD flat screen.


Because interest rates are so low, Certificate of Deposits, CDs, are dismal places to lock up your money. I shudder to think that my cash might only be earning a paltry 2% for the next few years once interest rates start rising again. When interest rates are high, debt is expensive, and saving pays nice dividends. When interest rates are low, debt is cheap, and saving pays poor dividends.

What you should do with your money today largely depends on current interest rates and future projections of those rates.