I counsel a LOT of people about money. I see the same mistakes being made over and over again.
If youve made em, dont worry. Im here to help you do it right THIS year! The fact is, moneymakers need a money coach, just like gymnasts need a gymnastics coach.
As your MoneySmart(tm) coach, here are the mistakes in thinking and behavior I want you to avoid:
* Dont think of your refund as free money or lottery winnings. Its not! That refund is your hard-earned dollars that you loaned Uncle Sam interest free all last year.
* Dont spend the refund or OVERSPEND it - when you havent gotten the cash in your hands yet.
* Dont spend the whole refund to pay down debt.
OK. So now youre MoneySmart(tm) about what NOT to do with that refund in 2005.
Next, here are my EASY MoneySmart(tm) moves that YOU can make to best handle your in'come tax refund this year.
First, divide your refund into thirds 3 equal amounts.
Why 3 equal amounts? Because we want to use that refund
however small or large to handle the past, the present
and the future.
Use one third to handle the PAST by paying down debts.
Start with your most pressing debteither the one with
the highest interest rate, or the one with the biggest
consequence for not paying it down.
Use one third for something you need or want in the PRESENT.
If you can, use that money to have some FUN. Do something
that is NOURISHING to you something that makes you feel
GOOD. How about a mini-vacation, or an evening of fine
dining and great entertainment, or a day at the spa?
***Of course, if the brakes on the car are shot, or you have
some other pressing need, youll need to do that FIRST.***
Finally, use one third to handle some aspect of your FUTURE.
Here are several MoneySmart(tm) suggestions for you to think about.
*Put money in your Anti-Emergency Fund.
(see http://www.phelps-creek.com/archives/Anti-Emergency.htm
for details)
*Put money in your Rainy Day Fund (see http://www.phelps-creek.com/archives/safetynet.htm for details) or save for your retirement through your 401(k), 403(b), IRA (traditional or Roth).
*Put money into college education funds (Coverdell IRAs or
529 plans) for your kids or grandkids.
Why is this thirds approach such a great idea? Because
you'll be taking care of a variety of wants and needs
AND taking several easy MoneySmart(tm) steps forward towards
your BIG goal of financial freedom!
THAT is how you can have MORE fun with YOUR tax refund in 2005.
As always, if you have any questions, please go to my web page www.cindymorus.com for contact information. Im here to be YOUR coach, and make sure YOU succeed.
Cindy
PS
Now is also a GREAT time to check out your paycheck:
* Re-evaluate how much money you are contributing to your
401(k) or 403(b).
* If you got a whopping refund, remember you were just
sticking YOUR money in Uncle Sams pocket. No point in
giving Uncle Sam an interest free loan! Adjust your
deductions so that you have just enough taxes withheld
from your paycheck.
PPS
If youre paying outrageous credit card charges (and so many people are) youll definitely want a free copy of "A Credit Expert's Secrets: You Can LOWER Your Credit Card Interest Rates". With my MoneySmart(tm) coaching, you be able to save hundreds (or maybe thousands) in credit card interest payments this year. Get a free copy of "A Credit Expert's Secrets You Can LOWER Your Credit Card Interest Rates" when you sign up for at: www.cindymorus.com/newsletter.htm
Cindy Morus (http://www.cindymorus.com)is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer. Get a free copy of the "A Credit Expert's Secrets: You Can LOWER Your Credit Card Interest Rates"e-book when you sign up for the "MoneySmart Nuggets" newsletter.
