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Helpful Tips for Tax Time |
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I Have to Pay
When you realized you weren't getting a refund this year, you probably didn't jump for joy, did you? Bet you didn't. None of us are thrilled about sending our hard-earned money away. Even though you have to send money to the IRS this year, it's not the end of the world, even if you're already living on a super-tight budget. Even if you've already sent in your check, here are some things to keep in mind:
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- Revisit the budget. See where you can squeeze a little bit of cash out of certain categories in your budget - all the little amounts from various places add up! Try your absolute hardest to resist using money from your emergency fund. How about pulling a little out of your clothing, entertainment, or vacation funds? Get free budgeting forms
- Clean out the house. It's that time of year again where people are always looking for a treasure in someone else's junk. It's nothing but a win-win situation: you get rid of clutter in your garage/attic/shed AND make extra cash while others walk away with bargains.
- Pizza, anyone? Pick up a part-time job for a short period of time. Delivering pizzas is a fabulous idea - and it's great for attacking your debt snowball like crazy, too!
- Here comes the Debt Snowball! If you absolutely can't write a one-time check to the IRS, put this payment in your debt snowball. Just remember that you will have to pay interest just like most other bills you are attacking in your snowball.
Don't stress about sending in the check. By following the above tips, you'll be back on track with the Baby Steps in no time!
I Got A Refund!
Instead of thinking this money - whether it's $300 or $3,000 - is a gift from the government to send you to the Bahamas or to get a brand-new spring wardrobe, think about it differently this year. Even though nice trips and new clothes are great, only consider stuff like that AFTER you've taken care of these necessities first:
- Build up your emergency fund. If you don't already have $1,000 in the bank, stash that away as fast as possible. It's important! Life is going to happen, and you need to be ready for your own sake. Don't let Murphy catch you off guard and put you further in debt. If you are already debt free (except for the house), throw this extra money toward building up your full emergency fund of 3-6 months of expenses. More
- Attack your debt snowball. If you already have your $1,000 emergency fund, attack your debt snowball with gazelle intensity. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs. In that case, list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan. More
- Invest it! Only after you are out of debt and have your full emergency fund saved should you consider investing your refund. Remember that if you are under 50 years of age, you can contribute up to $4,000 per year into a Roth IRA ($5,000 for over age 50). This is money that grows tax-free! If you're already contributing 15% or more into your own accounts, use this money toward your child's college funding. Let us put you in touch with a trusted investment professional in your area to help you set this account up.
- Pay off your home. Did you know that you aren't destined to have a house payment for the rest of your life? Yeah, it may sound crazy, but I'm telling you the truth! Once you've completed Baby Steps 1-6, it's time to own your home 100%. Maybe your refund is a whole house payment or two...or three. If you put your refund toward this, you are that much closer to owning your home - possibly months earlier than you originally expected. Now wouldn't that feel awesome?! Just think what life would be like with NO PAYMENTS!
It's time to think differently this year about this extra money! Remember...Debt is normal. BE WEIRD!
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The Basics of Your Debit Card |
Think a credit card is safer to use than a debit card? Most people do. They convince themselves that credit cards carry a better track record, and you're less likely to have your money stolen from you when you use a credit card. Sadly, those people are wrong.
Credit cards carry a huge risk of allowing the user to incur debt. Debit cards force you to pay with money you already have. If you hold a debit card from a well-known name like Visa or MasterCard, it will have the same policy about unauthorized charges that credit cards have. Don't fool yourself into thinking that credit cards are the "safe" way to go. They'll only get you into trouble and force you to make payments.
Debit cards are being used at an all-time high today and are used more often than credit cards. Last year debit card use exceeded a trillion dollars. Whew! That's a lot of people using debit cards! Although we like to see the increase of debit cards versus credit cards, we still want to make sure you're being careful with your debit card.
Since a debit card is directly linked to your bank account, it's a convenient way to purchase things without incurring debt. When you use a debit card, the money is immediately withdrawn from your account, which means no interest, late fees, over-the-limit fees, or annual fees - all good things to help you avoid debt. Debit cards are also great to use because they don't require you to carry cash or write a check.
Here are 5 tips when handling your debit card:
- Know your PIN.
When you make a purchase with your debit card, you should have the choice of running it as a debit or credit purchase. Always choose credit. Credit?! Yes. This will insure that you are protected by the card company's Zero Liability policy - you will not be responsible for unauthorized transactions. If you have to use your PIN, be sure to memorize your PIN and NEVER carry it with you. Report lost cards immediately, change your PIN frequently, and use your debit card only if you must.
- Check bank statements.
To insure that no one but you is using your debit card, check your bank statements online every day. It may seem tedious, but it's better than someone stealing your money. Be sure your internet connection and computer are secure before logging into your personal information. If you spot anything suspicious, call your bank immediately.
- Watch your debit card.
Keep your eyes on your debit card when transactions are taking place. It should be within your sight at all times. Once the card leaves your view, anyone has access to your card information and ultimately your bank account. That's why it's always best to use cash!
- Check your credit report.
Every year you can order a free credit report from one of the three nationwide consumer credit reporting companies. DO IT! If you think someone used your debit card, report it to the credit bureau immediately and request a copy of your credit report. Monitoring it regularly will help cut down on any illegal activities.
- Be on the lookout.
The latest scam involves criminals attaching "skimmers" to card-swiping devices and gaining access to your personal information and bank account. If a card-swiper looks questionable, don't use it. NEVER use an unbranded ATM.
Dave discusses the power of cash and how to protect yourself from the traps of credit in Financial Peace University. Find out more!
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Military Family Out of Bondage!
By Robert in Texas
As a career military member, I have spent many years preparing my soldiers to be ready for anything, but all the while, I was doing nothing to prepare myself and my family for our financial future.
One day about 18 months ago I heard Dave's radio show on my way home from the base and instantly recognized my need to get with the program. It took about six months for my wife to catch the idea since progress seemed so slow in the beginning. But when we paid that first bill off, she went bonkers! In 18 months we have paid off $38,000 with $26,000 being in the last 10 months because my wife and I developed "gazelle intensity".
Military pay has been historically lower in comparison to my civilian counterparts, but I don't do this for the money. I do what I do because I believe in freedom. Yet I placed my family in bondage to the lies of debt and consumerism. Thanks to the simple, straight-forward teaching Dave has provided, which he freely admits is nothing more than what God and your Grandma have been trying to tell you, I can concentrate on my missions to be the father, husband, and soldier I am supposed to be since I am not burdened by a load of debt. Thanks, Dave and team!
Related:
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$1,500 Red Sox Blanket
By Tim in Vermont
Last summer I took my two sons to see a Red Sox game in Boston. While walking around Fenway Park, we noticed a booth set up by MBNA. Anyone who signed up for one of their credit cards would get a "free" Red Sox blanket! I thought it looked very cool and was a great memento of the game. So I filled out an application. With my credit rating who would give me a credit card anyway?
Well, lo and behold, a couple months later I got an approval notice and a shiny new credit card in the mail. Instead of cutting it up, I decided I would use it for "just a few things" and keep it for emergencies. Well, it is surprising what you decide is an emergency when you have that credit card in your pocket!
I had managed to charge over $1,500 to the card before I came to my senses and cut the card up. So now I have a nice memento of our trip to Fenway ... a $1,500 credit card bill to pay off. To top it all off, the Red Sox lost the game!
Related:
Read other Stupid Tax stories
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Helpful Articles and Company Updates |
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Protect Yourself From Identity Theft |
One of the most annoying and troublesome things you can experience is to have your identity stolen. It could very well be days or weeks before you discover that something is wrong, and by then plenty of damage has been done. Bills are run up in your name, your credit gets trashed, and you have to argue with jerk collectors over money that you haven't even spent. Just about every aspect of your life becomes an open book, and it's a long and painful process to fix everything.
MSNBC reports that 1 in 12 people will become a victim of identity theft. The most recent story regarding identity theft on a big scale happened with retailer TJ Maxx. Almost 46 million identities were stolen from the corporate giant over an 18-month period. When you consider that there are 300 million people in the U.S., that means almost one-sixth of the country's population was affected by this one incident!
Theft doesn't have to happen on a large scale like that. Many thefts occur because a close friend or even a family member who is bad with money will steal the information of someone they know so they can get a cell phone, open a bank account or even gamble online. This is the lowest of the low. If you sign someone else's name instead of your own and you don't have a signed and notarized power of attorney, you are a criminal who should go to jail.
This is just one more reason to show you that credit cards are never a good idea. Identity theft is real and the more cards you have, the easier a target you become. That's not to make you paranoid or feel like everyone's out to get you, but you must be very careful with your identity. This is a good example of why cash is the best way to buy something. Not only do you tend to spend less when you use cash, but your identity is safe. You also don't have to worry about being charged 18% interest when you use bills.
Identity theft warning signs and what to do
Get more information about identity theft insurance from Zander Insurance, one of Dave's endorsed local providers.
Source: Foxnews.com
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4 Easy Tips to Sell Your Home |
It's spring, the busiest time of year when it comes to buying and selling real estate. If you want to sell your home, make sure your house looks its best during these next few months. Since I have a background in real estate, I thought I would share some important tips that are easy to carry out but are often overlooked. Here are 4 tips to help your home sell:
- Fix your front yard.
Are the bushes out front bigger than your house? If so, they definitely need a trim or need to be removed all together. No one wants to buy your house if they can't see it. Landscaping can be the most important detail to sell your home. Why? Your front yard is the first impression of your home. Make it a good first impression. That means you should mow your lawn, paint your front door, and clean up any dirty spots. Once the cleanup is done, ask yourself: "If I didn't live here, would I want to go knock on the front door?"
- Clean up pet smells.
No one wants to buy a house that smells like a cat or any other animal. If you own a pet - a dog, cat, or house pig (yes, some people have pigs as pets) - be sure to really clean your house. Get rid of any hair and smells that your beloved pet leaves behind. Be sure to give old carpet a good cleaning since it can trap in bad smells.
- Clear out the clutter.
Be sure to pick up personal items and your kid's toys. Having stuff lying around your house distracts buyers and makes your house look messy. Put your stuff in plastic bins and store them in your garage or shed. You want to keep your closets clean. Buyers love lots of storage space so your closets can be a big selling point.
- Get a great real estate agent.
This is the best advice I can give to sellers. A great agent will give you even more tips that can sell your house faster. Finding a great real estate agent in your area is easy; just use one of my Endorsed Local Providers. Here's what Robert in Alabama had to say about using one of my real estate ELPs:
"I just wanted to write you a note expressing my complete satisfaction of your ELP. He was a great help in assessing the market value of my residence. He went out of his way to help us move furniture around to get the best first impression possible. He even advised us on what items to just leave alone and what to improve upon (like paint color). He also guided us through the negotiation process to maximize our profit potential. Dave Ramsey was right... in the long run, hiring a good realtor results in less headaches and a higher sale price."
If you follow these 4 tips, you can bet an offer on you home won't be far behind!
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Say Hello to My Money Tools! |
Big news, Dave Ramsey fans! Say hello to the new version of My Money Tools 2.0! It's an easier and more accurate way to keep track of your money.
How many times have you bought something but forgot to write it in the budget? And by the time you remember, you've forgotten what it was or when you made the buy? With the new Integrated Budget/Expense tracker, you'll be able to add expenses as they come in. When you buy gasoline, eat out, or buy gifts for others, you'll be able to enter that item individually in your budget so you have a better idea of what you bought and when.
Everyone likes to give special names to budget items. Not only is the new software faster and more accurate, but money plans are even more customizable. That means your budget categories are as flexible as you need them to be!
Being able to see what you've spent in the past can really help to show you where you can trim your budget. You can create multiple budgets and archive them. That way, if you're curious how much you spent on groceries or gasoline three months ago, you'll have that information right at your fingertips.
The new, super-fast Budget Wizard will walk you through setting up a budget, and it will keep track of your information as you enter it so you know how much money you have left for the month. Making a money plan has never been this easy!
It's all part of our commitment to giving you the best experience you can have as part of our My Total Money Makeover community! Sign up now for a 7-day free trial!
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Magazines, websites, LIVE events, TV - Dave's everywhere! Get all the up-to-date info!
National Appearances
Focus on the Family Magazine
Pick up a copy of the April issue of Focus on the Family Magazine to read Dave's straight-forward, common-sense advice. - More Information
Regional Appearances
Total Money Makeover LIVE - Jackson, MS
See Dave LIVE Thursday, April 26 in Jackson. More information.
Total Money Makeover LIVE - Kansas City, MO
See Dave LIVE Saturday, May 5 in Kansas City - Sold Out!. More information.
Total Money Makeover LIVE - Birmingham, Ala.
See Dave LIVE Thursday, May 10 in Birmingham. More information.
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We Achieved Our Goal Last Month! |
The Total Money Makeover LIVE Event is a life-changing event like no other! It's fun. In fact, it's the most fun you'll ever have learning how to win with money. Check out this letter from Ida in Mississippi:
Dave,
We had just finished building a house and were swimming in debt. In addition to our new house note, we had credit cards, car and truck notes, and ended up getting a home equity loan just to get us by.
After attending your seminar in Jackson, Mississippi, my husband and I sat down and actually talked about our money, something we had NEVER done in 11 years of marriage. My husband always just gave me a portion of his paycheck and expected me to handle everything which was causing me to want to have a nervous breakdown. Anyway, we started your envelope system and started paying off bills. We have 2 children so there are always little things that come up, but we have worked very hard.
Our first goal was to be debt free (except for our mortgage) in 2 years. Well, I am pleased and proud to tell you that by March 31, 2007, our goal was achieved!!! We have paid off a grand total of about $45,000. We both feel so fortunate to be in the financial situation we are in. It is a complete turnaround from 2 years ago. Our next goal is to work on paying our house off within 10-15 years rather than 30!
We are so thankful to you for your infinite wisdom concerning financial matters. I know we would still be sinking in a river of debt if we had not attended your LIVE Event and started following your sound advice. Thank you so much!
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Check out our newest stations!
There are over 300 affiliates nationwide
| City & State |
Radio Station |
Air Times |
| Norfolk, VA |
WPMH AM 670 |
3-5pm EST |
| Jacksonville, FL |
WYMM AM 1530 |
2-5pm EST |
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We must accept finite disappointment, but never lose infinite hope.
-- Martin Luther King, Jr.
Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all. -- Dale Carnegie
He who does not hope to win has already lost.
-- Jose Joaquin Olmedo
When you do nothing, you feel overwhelmed and powerless. But when you get involved, you feel the sense of hope and accomplishment that comes from knowing you are working to make things better. --Pauline R. Kezer
Not only so, but we also rejoice in our sufferings, because we know that suffering produces perseverance; perseverance, character; and character, hope. -- Romans 5:3,4
Learn from yesterday, live for today, hope for tomorrow.
-- Albert Einstein
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