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Waiting For Your Tax Return?

Waiting For Your Tax Return? – by Alex Giannetti

I used to be like many Americans during this time of year. I couldn’t wait until January 31^st so that I could get my W2’s from my job and a 1098 from my mortgage company so that I could file my taxes and get my refund. We used to get on average about $4,000 back each year.

In 2008 however I had an epiphany about my tax refund. All this time I could have had about $400 more take home pay each month instead of loaning it to the government. At the time I had accumulated $42,881.75 in credit card debt and was struggling to make $1,000 payment each month. I was thrilled to plop down that refund on my credit card balance but if you do the math I would have been much better off paying $400 more per month to bring that balance down throughout the year.

Receiving a large tax refund is only a symptom. It’s a symptom of not having a real plan. Most people use their tax refund for one of the following: to pay off Christmas; to buy something they really can’t afford; to go on a ‘well deserved’ vacation; or to get ‘caught up’ on bills. If this is you, then please pay close attention.

If you have read any of my articles you know that I am a huge promoter of Dave Ramsey and his teachings as it relates to handling your personal finances. I have been teaching folks to create their budgets by spending their money on paper before the month begins. When you do this, you basically give every dollar a name. Everything then that you can squeeze out of your budget goes to paying off your debt. $400 in anyone’s budget is huge. Imagine the dent you can put into your credit card bills, car loans, and student loans when you have an extra $400 a month.

Now just because my number was $400 doesn’t mean that your number is. Your number may be even higher. Here is what you need to do. First, you need to make a commitment to get your finances on track. I would strongly suggest taking an FPU class as a start.

Next, talk to your tax professional and find out what to do so you can break even at tax time and maximize your take home pay. If you have a real budget that works (like the one I teach people to use), then the extra money will go to eliminating your debt, saving for retirement, or paying your house off early. I have to warn you though, that if you don’t have a plan, then your money will disappear and you will have no clue what happened to it. Sound familiar? According to the Wall Street Journal, 70% of Americans live paycheck to paycheck. Are you one of them?

You are always welcome to contact me with comments and questions. You can find me at www.ChinoHillsMortgageMan.com

Class Debt Paid

Well, it took me way to long to do this but the numbers are in. Collectively those who responded have paid off $82,638.25 in debt and saved $23,630.00

It's a good thing that I am typing becuase I am totally speechless. This numbers are phenomenal. Fantastic Job everyone!

It's too hard!

Giving up the old life is hard. Change is hard. Working the program is hard. Budgeting is hard. Getting your debt snowball rolling is hard. If it was easy everyone would be living in a paid for house and driving cars without payments.

That's why FPU works. But you have to work the program. That means you need to stop doing what you always did. Stop using credit cards, period. Start using cash (You ain't gonna be robbed!). Sell stuff. Stick to your budget.

Work the program. We did and we are debt free. I'm not bragging. These are the facts. If you want to be broke when your 65 and greeting people at Walmart, that's your life to live. If you want a 30 year mortgage every five years until your dead, that's your business.

But for me, I am free. I'm not working for the banks. I have choices. I sleep good at night. This freedom can be yours too, if you want it. But if you work the program "Willie Nillie" you will not accomplish your goals. If you put only some effort into it you will be in debt forever. You must get intense. You must kill your debt! Cut up your cards! Get off the juice! Or stay broke - it's your life.

I challange you to get intense. Think differently. Sacrifice now so that you can have your life back. We did it. It took us a long time. It was hard. It was painful. But it was so worth it. You can do it too. Kill it.

That's a picture of our paid for house.

It can be done people.

Chasing the Cheetah?

Sometimes I wonder if some people attending FPU think of it as some kind of a cult. I wonder if they think we are all nuts who have bought in to some weird message preached by this Dave Ramsey guy, and now all we do is run around cutting up credit cards.

The essence of winning financially is getting to the point where you are so disgusted with your current situation, that it no longer matters what anyone else thinks. It means that common sense is more important than looking good to others. It means that you are willing to do whatever it takes to get your family back on track. Living like no one else, then later, living like no one else.

Yesterday I woke up at 6:30, started teaching school by 7am, attended a networking meeting from 11:30 to 1pm. Came home to put together some loan disclosures for two clients I had to meet with. At 2pm I left the house to referee a soccer game in Hacienda Heights (my 2nd job). I got home at 5:15 which was just enough time to have dinner and get the class materials ready. After I started the class and got the video rolling I left to meet with a young couple trying to buy their first home. I was able to get back to class before the video ended and not many knew I had left.

The reality is I was tired at 5pm. But becuase I know this really works. Becuase Stacie and I have seen the fruits of our labor in regard to paying off our debt, there is no way that we can stop now. The prize is too great. I refuse to be Practice the Goat. Don't Quit!

Class Debt Totals

Well, here we are in week 3. The class is fully under way. The group discussion is picking up in the intensity department as we start to really get into the meat and potatoes of this whole Financial Peace thing.

Tonight's budgeting lesson will change your life forever if you put in to practice what you learned tonight. It's not easy. Especially when you have not been living by these principles. It's like going from an all pizza diet, to cottage cheese and fruit over night. There will be some pain and suffering so to speak. However, you will see dramatic results. It comes down to doing the things that we know we are supposed to be doing but don't like to do. We all know that if you want to lose weight, just burn more calories than you take in. If you want to win with money, just spend less than you make. It's so simple, yet so hard.

OK, enough blabbering. Here is the long awaited, rediculously high, class debt total.
$2,510,516.54 that breaks down to $100,420.66 per household.

Remember that next week's lesson will help us to start paying this thing off. My guess is that this class can pay off at least $80,000 of this number by the end of our 13 weeks together. Let's see how we do.

FPU Under Way

For many of you this may be your first visit to the FPU Cheetah Chasers blog. After only 2 sessions of FPU, you don't even understand what Chasing the Cheetah means (that gets covered in session 4).

My hope is that this blog becomes an ongoing classroom session where you can ask questions, propose ideas, ask for help and network with other FPU classmates and former graduates. This is a safe environment that is potentially a huge resource to the person who truly wishes to get out of debt, stay out of debt, and build wealth.

For those who are currently attending FPU at joy, make sure that your quickie budget is complete and that you are keeping up on your reading assignments. If you have yet to officially register for the class, your time is running out so contact me asap and get that done.

This Monday is Cash Flow Planning where Dave teaches us about budgeting. Don't miss this class. Come early and sit up front. This class is what FPU is all about.

Also, Thursday is the Town Hall For Hope at Joy CC. Watch it live at 5pm or taped at 7pm. If you come to the 7pm session, please come early. I think that there will be so many people attending that not everyone will get in.

see you soon,

Alex