All Financial Hope is Lost, IF you don't pay attention to the details.

Part One

It happens every year at tax time.  On Facebook, on twitter, in the newspaper, you see and hear it everywhere you go.

"I NEED MY $ NOW."

"WHERE'S MY REFUND?"

"IT'S MY MONEY!"

And my personal favorite........

"I AM GETTING EVICTED/ELECTRIC/GAS/PHONE SHUTOFF! I NEED MY REFUND TO PAY MY BILLS!"

Ok seriously folks- can I ask you?  How in the heck do you pay your bills the OTHER ELEVEN MONTHS out of the year???  Why is EVERYONE SUDDENLY BROKE- at tax time???

I can't wrap my mind around it.

I have a family of 5 that lives on $2,400 a month.

Oh wait.....

That's GROSS PAY.

What do we ACTUALLY SEE month to month???

$1,644

FOR A FAMILY OF 5!

We paid off a car loan of $11,000 in just six months a few years back.
Last year we bought our own home.  4 Bedroom, 2 bath, and 1,800 square feet PLUS full basement.

Here's the trick.

NUMBER ONE:

Live on less than what you earn.
Your Bills should be no more than 60% of your income

Do your bills come to more?  Get rid of something.

Examples:
Our cellphone contracts were $200 a month.
Pay as you go is $100 a month (savings $100 monthly)

Cable TV and Internet was $178 a month
Internet and Netflix is $50  (savings $128 monthly)

Land Line to our Home? $74 a month
VOIP Magic Jack landline $100 for FIVE YEARS  (savings $4,340)

Look- I didn't even really get rid of anything- I just got by paying less!

If you can't possibly cut back your bills~  you need another job.  It's that simple.

You should be able to now put 30% of your income into savings.
In our case and you might think this is strange.. we did this in a unique manner.
My husband claims ZERO deductions on his forms at work- so the government takes the MAXIMUM.  We NEVER EVEN SEE 30% of his income until it's time for taxes!

This leaves you 10% of your income- THIS, this is your fun money.  If you make $600 each week, you have $60 to "play" on.  I wouldn't recommend it though.  You never know when you might need an emergency car repair, or extra gas $...

Your weekend trips to the bar??
Oh honey, it's cheaper to drink at home.  Do you really NEED to drink anyways??

What about socializing with your friends? 

How about inviting them over for popcorn and watching a Netflix movie on that brand new smart TV you were able to purchase this next tax time using my tips?

Yes- we do have a few nice things, a plasma television, a couple of Ipods, some nice camera equipment.  We allow one or two splurges out of the tax refund.  This year I got a new stainless steel dishwasher and a stainless steel over the range microwave- and I am giddy over that.

Learn how to balance your budget- and you will be a LOT happier for it.

For more tips- contact me.  I am happy to help.