First off, it mentions people who may not be able to make a car payment without lowering their taxes paid through payroll. Well, maybe they should have thought of that & bought a less expensive car that they could afford. Or maybe, heaven forbid, put a small amount aside each payroll in a car savings account. Even $10.00 could make a difference if accumulated for a few years. Let's face it. Darned near everyone wastes at least $10.00-$20.00 per month on stuff like lattes, fast food, any eating out, & loads of maybe fun, but unnecessary stuff. If they have trouble paying their bills that makes this stuff even more unnecessary. Not to mention Direct TV bills. Really, that's a luxury not a necessity.
The same goes for not being able to afford rent payment. Find a less expensive place to live.
This is a huge problem with our society. Overindulgence to the point of not being able to afford it. The question is "Do you NEED it, or do you WANT it?" First you pay your bills. Second you put a little in savings. Then you can spend what's left on any WANTS you care to. Not before.
Next the writer brought up that this tax money could be saved or invested to earn money rather than the government doing that. Have you seen the Interest Income rates lately? They're darned near non existant. The trouble of figuring out how much more you will have that way, taking that amount every single paycheck & depositing it into an account you absolutely will not touch 'till tax time, sticking to this plan & seeing what you've made will amount to only a couple of dollars during the year. $Maybe $5.00 to $10.00 on that $3,000 tax refund mentioned if you're lucky.
Is it worth that for all the trouble, not to mention temptation to spend "your" money?
Personally I don't think so.
I'm more financially disciplined than nearly everyone I know, but I wouldn't bother doing that. Let the government have my $5.00 as savings fee. That way the money will come back every year as a lump sum into my special account where I'm less likely to dip into it.
It amazes me that anyone with any financial expertise would recommend this. Especially to people who may have trouble saving to begin with. They're just being set up for disaster at Tax Time.