~It's That Time Again!~

It's that time of year....Income Taxes are here!
What are you going to be doing with your return? Debt snowballing? Vacation fund? Saving for your emergency fund? Whatever you decide to do, I hope you are good stewards with the money. I encourage you to take this money and use it to secure your financial future. Yes, I realize that most of us are not talking about getting back a huge amount of money. However, every bit is nice to get back :)

If you are getting back a large return, you should (so says Dave Ramsey) talk to your employer and have your withholdings changed so that the government is not holding onto your money for you. You will be bringing more home in your check and then getting less back in a return. You should be investing that money and make it work for you instead of getting a large refund. Makes sense to me! If you are interested in learning more about this, please click HERE.

What are we doing with our return? Saving it....I know, no surprise ;)

We have witnessed several people who have suffered job loss during this tough economic time. If they would not have had an emergency fund (not just the $1k, but a real emergency fund of 3-6 months living expenses) they would have lost EVERYTHING. Luckily, they were able to sail through and be able to make it. However, none of them were able to get new jobs that paid them anywhere near their previous salary. That is why it is so important to live BELOW your means. Sure the bank says that we can all afford WAY more than we actually can. They forget that some of us like to eat. Ha!
We were just watching one of those home shows with first time home buyers and the female said that it seemed like a lot of money that the bank was willing to lend them. Then male said "Well, the bank wouldn't lend it to us if we couldn't afford it!" My husband and I laughed so hard at that statement, I think I may have been rolling on the floor! Literally, we kept rewinding it to hear him say it again. Once I stopped laughing at the ignorance, I suddenly felt really sorry for the couple. Do they really not know what they can afford?
Then I take a look around and most people do not know what they can afford in general. How many people do you know that have credit card debt? Expensive car payments? House Payments that are more than 20-25% of their income? Large student loan debt that they will be paying on forever because the minimum is the only amount paid each month?
Just remember that if you could "afford" the purchase then you would be able to pay cash for it right then. If not, it really does a body good to know what it is like to want for something. Yes, a foreign concept in the society we live. We are all so blessed and should be content with what we have without constantly wanting more.
I'm not saying be lazy and never strive for more. I'm saying the opposite...Aim high, but enjoy the moment that you are in and make the most of it.

Happy Monday!
SHO