“We must be careful about our behavioural bias of mental accounting in which we treat money from different sources with (a) different value. In fact, when people get tax refunds, they generally are waiting to splurge it off because, in their minds, they have already written off that money as tax paid. We should hold that urge and look at it more objectively. Would you still have splurged that additional money had you calculated the tax amount correctly and paid the exact amount? In such a scenario, you would have that money still lying in your account. If you would still have spent it, maybe you needed that stuff badly, and hence, it would be a justified purchase,” says Chenthil Iyer, founder and chief strategist, Horus Financial Consultants, a financial planning and wealth management company.