April 2013 Archives

Tax Photo_c.jpgAs the year quickly progresses spring has sprung and so has tax season! With tax season comes anxiety for some and new hope for many others. Anxiety that you may owe or how to spend your refund (more of the prior less of the latter). Being in the situation of owing IRS before and stressing until my hair nearly fell out I found that once I stopped and handled my business that the solution way less stressful than all of the effort that I had put into worrying. Now I have one simple rule when it comes to this... Reach out to them before they reach out to you. If you owe, you owe, call them up & get on a payment plan that you can handle and stop agonizing over it. The quicker you do this the less time you will spend on worrying over the unknown. Trust me knowing what you're up against is much better than walking around blindly through the dark.

Now on to those of us who are getting a refund and don't know what to do with it or think that we know exactly what to do with it. Let's take a moment to think because we want to spend this money wisely and not be in the same predicament were in today in another month or two. So before we spend a dime of our refund check, let's think about what we have, who/what we owe and what we actually NEED in regards to how much refund we're actually getting.

This means: Getting in front of your expenses instead of always running behind them. Start by creating a budget, write down everything you spent money on for a month no matter how minuscule and minute you may think a purchase is WRITE IT DOWN. Now that you have done the homework the next part is easy. Separate the list into two simple categories Necessities (food, transportation expenses to and from work etc...), and Not Necessities or splurges - don't cheat on these lists remember you'll only be cheating yourself in the end. Now add up each list separately. The total from your necessities will give you your nonnegotiable monthly expense report. Next deduct this total from you total monthly take home earnings. Now you can physically see a number and where you stand realistically without unnecessary expenses. Now deduct the total from those unnecessary items and see where you stand. By doing this you get a handle on how much you need to spend and then what you can spend based on real numbers, not the ones we make up in our head to justify that impulse buy.

Now look at your tax refund check... what would help you more out over the next year not month because remember tax season comes but once a year so you best choose wisely. For example which do you think is the best choice: 1. Buying that Big Screen TV or better yet if your refund isn't enough to buy it, putting a down payment on it and getting it financed with high financing fees if you don't pay it off by a certain time VS. 2. Paying off a few bills freeing up more money monthly helping your credit score and giving you room to save so you can buy that TV out right? I'm going with option #2. Although it will take a little longer, I just don't see how spending my whole refund check on one purchase when I still have other bills looming over my head would be a wise/transformational decision. Yes the thrill of the purchase is all good but what happens next month when I have to now pay that extra bill or I'm still struggling to pay my other bills that I had from before that a couple of which could've been eliminated if I had just used my refund to pay them off and thought about that Sony later.

Staying ahead of your expenses will minimize stress and mental fatigue. Less worrying about paying bills or purchase anxiety will aid in becoming a more organized, proactive and confident person making strides towards Self Transformation.

About this Archive

Archive of entries from April 2013 listed from newest to oldest.

August 2012 is the previous archive.

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