Lending Club Blog

Have the Government Help You With Saving

There are many ways for you to start saving your money; some work, most don’t. Especially if you come from a family and background where nobody saved and that was not an integral part of dealing with money. One way to force yourself into saving is by having the government help you with it. This tip might not be for everybody, but if you are having a hard time saving money, it might do the trick.

When signing up for a new job, you always fill out a bunch of papers and sign many dotted lines. One of the forms you fill out is a tax withholding form. This is where you enter your number of exceptions and indicate if you want extra money taken out of your paycheck, so that at the end of the year you will not have to owe money to the government.

By entering a bigger amount into this “extra withholding” section, your employer will take out that amount from your paycheck and send it to the IRS. Then next year, after submitting your taxes, you will receive a bigger refund. The extra amount that you chose to be withheld from your paycheck should be there from the entire year.

Take the refund check and forward it to whoever handles your savings or investments, such as companies like Schwab and ING Direct. You can also fund an account with a social lending site and lend it out to other people while you earn interest.

The downside of this savings method is that you will miss out on the interest that you might have earned during the year by saving or investing this money yourself. This is a decision that you will have to make: is it worth it for you to lose interest dollars to be able to have the money saved in one lump sum at the end of the year, or are you diligent enough to save it yourself on a regular basis? Look at your history and past actions and let them guide you, not what you think you will do.
Caution: Please review your previous tax returns and talk to your accountant to make sure that this method doesn’t have any negative consequences for your particular situation. (It shouldn’t, but having that OK is always good.)

Tuesday, August 26th, 2008 at 7:05 am

Comments (0)

Recommended

Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

A Message to Investors from our President and Acting CEO

Today, our President and acting… Read More »
May 19, 2016

Lending Club Receives Tribeca Disruptive Innovation Award

Disruptive innovation comes in many… Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

Lending Club partners with Funding Circle and Prosper to launch Marketplace Lending Association

Read More »
April 7, 2016

Lending Club Welcomes Maryland and North Dakota Investors!

We’re now open to retail… Read More »
February 23, 2016

What is Lending Club?

More than one million Americans have achieved their financial… Read More »
February 16, 2016

Get ready for tax season! Lending Club Now Offering TurboTax Integration for Form 1099s

Read More »
February 12, 2016

Lending Club Success: Surpassing $16 Billion in Loans

Founded in 2007, Lending Club’s… Read More »
February 11, 2016

Credit Performance Update

Summary: Credit performance of our standard program is coming… Read More »
February 7, 2016

Critical Small Business Financing Issues

A recent Harris Poll survey conducted on behalf of… Read More »
December 17, 2015

2014

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w