|
Dave's Thoughts on the Stimulus Tax Rebate |
Listen to Dave's comment from the radio show
Most of you are jumping with joy that you're probably going to be getting a big, fat check from the government. You may be thinking, "FREE MONEY, BABY!!!"
Well, I'm not here to totally rain on your parade, but plain and simple, I'm not lovin' this plan. This government plan to try to stimulate the economy and pull us away from a possible recession is actually straight-up socialism - just the opposite of capitalism! I don't want my money to help you (if you haven't paid federal income taxes) buy an iPhone or whatever else you have your eye set on.
"Letting Americans keep more of their own money should increase consumer spending, and lift our economy at a time when people otherwise might spend less," President Bush said. The idea in theory sounds like it will work smoothly, but I have a much better idea that will eventually increase consumer spending, and in turn, cause the economy to flourish: encourage freedom from debt!
The last time a stimulus rebate like this was issued was in 2001. A recent study revealed consumers spent two-thirds of those rebates within 6 months of receiving them. Do you have a game plan already for what you'll do with your rebate this time around?
Make the Money Work For You
Don't wait until it comes in the mail to formulate a plan, and whatever you do, do NOT spend this money before it gets to your hands! Those are just formal invitations for Murphy to unpack his suitcases in your spare bedroom! Here are a handful of ways I recommend making your tax rebate work for you, depending on where you are in the Baby Steps:
- Pay off debt.
This may sound like a no-brainer, but I already expect that few people will actually do it! There's really no reason NOT to throw this "free" money toward your debt snowball. It will get you one step (or maybe quite a few) closer to being debt free, and THEN you will have the freedom to buy that toy or take that vacation you've had your heart set on for quite a while! Learn how
- Invest it.
If you put this big chunk of change into a mutual fund for a few years, you'll actually receive TONS more money than just the initial $600 or $1,200 check this summer.
Say you get back $600 and put it automatically into a mutual fund averaging 12%. In 2018, that one-time investment will grow to approximately $2,000! If left in for 20 years, it will be worth about $6,500! For the married folks, this free money can grow up to $13,000 over 20 years - WOW! Calculate your earnings
- Have some fun.
I'm not a total meanie. I actually do like to have some fun with my money, and I encourage you to do the same! There's nothing wrong with taking your spouse out for a nice dinner or buying that new pair of jeans with some of this money you could be getting. Just stick within your boundaries, and remember that the quicker you get out of debt, the more fun things you can do and the more money you can give away to bless others.
Source: CNNMoney.com
Related:
Back to
Top
|
Got a Letter From the IRS?
|
My team and I have already been flooded with calls and emails from people who have been contacted by the IRS this year. Many of these people are scared because they don't know what to do and think ignoring the problem will make it go away. Don't ignore the problem; look it in the face and properly deal with it. We're here to show you how!
If you get a letter from the IRS:
- Open it!
It's estimated that 50% of the people who receive a letter from the IRS don't open it. Different IRS letters have different time frames to respond, but you usually have about 30 days - so don't waste any time. Ignoring the problem won't make it go away.
- Decide if you need help.
You can get help by contacting an Enrolled Agent, CPA, or a Tax Attorney. They can help you understand your situation and represent you if you have to meet with an IRS agent.
- Prepare for your meeting with the tax advisor.
Bring your letter from the IRS and any important papers you may need (tax returns, paycheck stubs, etc.). Use your time with the tax advisor wisely, and you might be out of trouble quicker than you thought possible.
On a final note, if the IRS says you owe money, don't assume they're right. Believe me; the IRS makes mistakes more often than you might think. Here's proof from a listener:
"Dave, I got a bill from the KGB (IRS) yesterday saying I owed $9,000 because of a mistake on my taxes. I panicked and called your tax ELP, and within 20 minutes he figured out the problem and was walking me through how to fix it. The IRS actually owes me money! I hired him to amend the return. Thanks for this service."
- Krysha
Krysha did the right thing. She hired a great tax expert and prepared for the meeting. The tax expert double-checked the IRS's math, and it paid off big-time! Computer tax programs can't do that, can they?
Need help with your taxes? Connect with a local tax expert Dave recommends
Back to
Top
Excited About Baby Step 3!
By Walter in New Mexico
My wife and I were married in January 2007, and we had over $14,000 of debt for two car loans. In March, we discovered that she was pregnant and didn't want her to have to work after we had a baby. Two friends of ours from church introduced us to the Total Money Makeover book, and I was thrilled to find a way to pay off our debt and change our lifestyle so that my wife could stay home with our baby.
I traded in my sports car (still owed over $9,000) and got a used car. With the trade-in value of my car plus $1,500 cash, I got a reliable, used car with only 60,000 miles on it. The best thing about that is that I don't have any payments on that used car! Those two car payments were costing us over $640 each month, but now that's money we're going to have toward meeting our goals.
We just did our taxes yesterday, and with the refund we're getting we're going to finish paying them back next month plus have money left over to get us started on Baby Step 3!
I hope this encourages everyone - you can also do it! If someone had asked me at this time last year whether I thought we could have both cars paid off plus money in our savings account by March, I would have laughed. Thanks to Dave, we've eliminated $14,000 in debt and are working on saving up that 6-month emergency fund.
Next Step: Get specific resources based on the Baby Step you're working to accomplish
Read other We did It! stories
Back
to Top
$800 in Overdraft Fees!
By Carl in IL
I am in my 40s and have been using my checking account as a credit card for years.
Two months ago I had 28 $29 overdraft fees on my account. Yikes! That's over $800 in fees!
Growing up, the bank would never bounce one of my checks because my parents always came to my rescue. But I have started strictly budgeting, and the stress relief of NEVER worrying if I'll have money in the account feels so good!
Dave has saved my future, my finances, and most importantly my self-esteem, for I do not feel like a child anymore. By the way, I have a very healthy balance in my checking account now! I'm learning where my money goes and have much more than I thought!
Resources to help you keep your checkbook balanced
Read other Stupid Tax stories
Back to
Top
|
Helpful Articles and Company Updates |
|
Borrowing for the Basics |
It's no secret that we all pay a little more attention to the thermostat during the winter and summer months; no one wants a high electric or heating bill! Some people, though, are struggling to pay their utility bill no matter how big or small it is.
A recent CreditCards.com poll found that 21% of Americans will either borrow money or use credit cards to pay their heating bills this winter. Think about that for a second. One in five people in the United States doesn't even have the money to pay the heating bill during the coldest months of the year! How ridiculous is that?
What if someone told these people there was no way to borrow the money to pay the bill? Everyone in their right mind would find a way to keep the heat on until the weather warms up. They would turn the thermostat down, make a budget, cut back on unnecessary spending or even take a second job to pay the bill. They wouldn't want to face the embarrassment of wrapping themselves or their families in blankets.
See Things Differently
Using debt to pay the heating bill is just another way of wrapping yourself up. For some people, if it wasn't for the plastic in their wallets, they would not even have a warm home. But if you simply had a plan - a budget - so you don't spend more than you have, then you would see where you waste money and can cut back. Less money spent on that morning coffee or candy bars at the gas station means you can keep the heat on without borrowing. Create online budgets
Don't make any excuses about paying off the credit card balance each month. What if the credit card company loses your payment, which happens more often than you think? They can raise the interest rate, slap you with fees, ding your credit, and there's not a thing you can do about it. If your payment isn't posted to your account, it never happened. Don't fall for that.
Little Things Add Up
If you do the little things and save small amounts of money here and there, those can add up. Do you pay $4 for coffee each morning? If you do, that's $80 to $100 each month that could go toward utilities. That's almost a month worth of heating right there!
Make sure to turn the lights in a room off when you leave. If no one is watching the TV, turn it off. When you go to the gas station, just buy the gas and resist the temptation to buy the overpriced goodies in the store.
Get more money-saving ideas in the MyTotalMoneyMakeover.com community!
Make a budget and look for the little savings, and the heat will stay on!
Back to Top
|
Build an Emergency Fund Fast! |
You may already know that Baby Step 1 in Financial Peace University is saving $1,000 for a starter emergency fund. It might seem daunting to save up that much money, but you can do it! Even if you've never held $1,000 cash in your hands before, there are plenty of ways to quickly earn the money. Then you can stash it away in the bank for a rainy day.
Here are several ways you can start saving for your emergency fund:
- Get a second job
Sure, no one wants to leave their 9-5 day job only to head to a night shift somewhere else, but just keep in mind that it's temporary. Remember, you have to live like no one else now so you can live like no one else later. If you're a stay-at-home mom, consider babysitting someone else's kids to bring in some extra cash each month. Many parents would rather have a friend watch their child instead of shuffling them to daycare.
- Sell some stuff
You're bound to have extra stuff around your home just collecting dust. If you don't need it, sell it! Like Dave says, "Sell so much stuff that you're kids think they're next!" Do you really need five TVs? What about all the clothes in your closet? Throw all your unnecessary stuff in a pile and have a garage sale this weekend!
- Stop eating out so much
If you are a typical American, you eat in a restaurant more than you eat in your dining room! Making your own meals and staying away from your favorite eatery could save you hundreds of dollars each year. Also, brown bag your lunch during the week-even Dave does that! You'll see the money start to add up pretty quickly!
- Carpool to work and activites
With gas prices going up, sharing the commute to work each day with a co-worker is a smart way to save. Whether you drive or ride, this will save you money in the long run.
- Kick the habit
Whether it's smoking, lattes or shoes, kick your indulgence to the curb. A $4 beverage from Starbucks every morning before work may not seem like a lot, but if you take that $4 and save it for just a month, you'll have about $85! That should be incentive enough to stop splurging until you can actually afford it.
- Ditch the cable
Ok, maybe you aren't that extreme, but you could get rid of the premium cable channels. They don't just waste your money; they waste your time! Besides, does anyone really watch all 573 channels?
- Buy used things
Yes, this will push some beyond their comfort zone. However, considering the markups most retail stores charge on new items, buying "slightly experienced" goods makes a lot of sense. Visit resale shops. Surf over to eBay. Check out the classifieds. You may not enjoy digging around in someone else's stuff, but garage sales are a sure way to save some cash.
- Get a piggy bank
Whenever you have spare change, stash it away in your piggy bank. Over time, the change will build up and make a significant impact on your emergency fund.
- Use your energy
What do you really enjoy doing? In what area are you especially talented? Now take those talents and find a few ways to make money with them. For example, if you're an excellent cleaner, clean a few houses in your neighborhood to earn some extra cash. Maybe you love dogs. Why not walk your busy neighbor's dog for a few bucks? Are you good at building things? Offer your services for side construction jobs. The possibilities are endless!
Now that you have some great ideas for quickly building up your emergency fund, it's time to get busy! No more excuses!
Financial Peace University is a great opportunity to get more creative ideas for saving your emergency fund and getting your debt snowball rolling faster. You'll be able to gain face-to-face encouragement and creative ideas from others who are daily applying the Baby Steps in their lives as well. Be sure to check it out!
Back
to Top
|
On Tour With the LIVE Events |
Ever wonder what it would feel like if higher gas prices were just an inconvenience?
Come learn how to make this a reality.
This year The Total Money Makeover LIVE Event is heading back out on the road! Last year we saw thousands of lives changed throughout this country, so hey, why not do it again? The first event of the season was in Grand Rapids with over 9,000 people in attendance!
Did you know?
- It sometimes takes over 200 volunteers, 10 stage builders, 20 event managers, one event coordinator, and all the support team in Nashville just to make the event happen.
- Two large moving trucks are needed to haul the gear to the venue just to stage an event.
- The average coordinator walks close to 20 miles back and forth throughout the arena for an event, just to make sure the show goes off without a hitch.
- Each event is sometimes planned over a year in advance.
- We are very interested in how your life was changed by a LIVE Event. If you've been, let us know!
We Need YOU!
Did you catch that? It takes a TON of volunteers to help pull off a successful Total Money Makeover LIVE Event. THAT'S YOU! We welcome volunteers who are passionate about what we teach and about helping others. Here are what some previous volunteers have to say about their experiences:
It was really great to be part of the Portland [Oregon] event. I enjoyed meeting so many who are just beginning their journey and some who are well down the road. Your staff was awesome; the whole experience was top-notch. - Linda
I also enjoyed volunteering [at the Indianapolis] event. Everything seemed well organized. I look forward to your next stop in Indy! - Glenda
Learn More
Stops this season include:
Learn More | Get tickets
Back
to Top
Magazines, websites, LIVE events, TV - Dave's everywhere! Get all the up-to-date info!
Regional Appearances
Total Money Makeover LIVE - Dallas, TX
See Dave LIVE Saturday, February 23, 2008 in Dallas.
Total Money Makeover LIVE - Lexington, KY
See Dave LIVE Friday, March 7, 2008 in Lexington.
Total Money Makeover LIVE - Colorado Springs, CO
See Dave LIVE Saturday, April 5, 2008 in Colorado Springs.
Back
to Top
Check out our newest stations!
There are over 330 affiliates nationwide
| City & State |
Radio Station |
Air Times |
| Pecos, TX |
KPTX 98.3 FM |
1-4pm CST M-F |
| Charleston, SC |
WSCC 94.3 FM |
6-9pm EST M-F |
| Missoula, MT |
KMPT 930 AM |
1-3pm MST M-F |
| Cincinnati, OH |
WCVX 1050 AM |
4-7pm EST M-F |
| San Diego, CA |
KFMB 760 AM |
7-10pm PST Sunday |
| Edmonton, AB (Canada) |
CJCA 930 AM |
1-3pm MST M-F |
| St George, UT |
KDXU 890 AM |
9pm-12m MST Sunday |
| Valdosta, GA |
WVLD 1450 AM |
4-7pm EST M-F |
Back
to Top
We didn't actually overspend our budget. The allocation simply fell short of our expenditure. - Keith Davis
Some couples go over their budgets very carefully every month. Others just go over them. - Katherine Mansfield
Changes start occurring when budgets are cut. - Anonymous
A budget is telling your money where to go instead of wondering where it went. - John Maxwell
Money flows from those who don't manage it and to those who do. - Dave Ramsey
People don't plan to fail; they fail to plan. - Anonymous
Back
to Top
|
