With mortgage rates being so low right now, a lot of people are asking the question:
SHOULD I REFINANCE MY MORTGAGE?
Here is a down and dirty mathematical way of looking at it.
Current principal & Interest Payment (without taxes and insurance)
MINUS
New principal & Interest Payment
EQUALS
Monthly Savings
Then take your closing costs and divide that by your monthly savings. This will give you the number of months needed to break even.
Will you stay in your home longer than the number of months it will take to break even? If so, you are a candidate for a refinance.
MYTH: Car payments are a way of life.
Thursday, April 29, 2010
TRUTH: Staying away from car payments by driving reliable used cars is what the average millionarie does; that is how he/she became a millionaire.
The car payment is most folks' largest payment except for their home mortgage, so it steals more money from the income than virtually anything else. Most people get a car payment and keep it most of thier lives, as soon as a car is paid off, they get another because they "need" another new car.
If you keep a $378 (average/normal car payment) rather than investing that money from age 25 to 65, a normal working lifetime, in the average mutual fun you would have $4,447,084 by age 65.
Rather, save $378 for just 10 months and you can have a $4000 car that is paid for. Save the same amount again and in 10 more months you can have a $8,000 car, do it again for another 10 months and in 30 months you could have a $12,000 car without ever having made car payments.
The car payment is most folks' largest payment except for their home mortgage, so it steals more money from the income than virtually anything else. Most people get a car payment and keep it most of thier lives, as soon as a car is paid off, they get another because they "need" another new car.
If you keep a $378 (average/normal car payment) rather than investing that money from age 25 to 65, a normal working lifetime, in the average mutual fun you would have $4,447,084 by age 65.
Rather, save $378 for just 10 months and you can have a $4000 car that is paid for. Save the same amount again and in 10 more months you can have a $8,000 car, do it again for another 10 months and in 30 months you could have a $12,000 car without ever having made car payments.
Financial Assistance
Monday, April 26, 2010
I have decided to take my BLOG into a new direction. I am going to give you financial tidbits each week that I hope will help you all in the long run.
I am not a financial planner, nor am I a CPA. I do however, read a lot about money, investing, and things like that. I know my fair share about those things but so do most of us. (I will be getting most of my factual information from Dave Ramseys' books/ websites, just in case you long for more!) What is the most interesting to me is that:
WINNING AT MONEY 80% BEHAVIOR AND 20% HEAD KNOWLEDGE.
Do you find that as shocking as I do? I would think that means we all know how to run our finances. Then why is our country in such shambles? If it only takes 20% knowledge, then what is going on? We can't all be that sheltered from the information!
Well, its hard. Its HARD to say no to the things you want, the toys, the games, the food, the treats, in favor of doing the things you should do. But, I am here to motivate you! Let me start with this Shocking Stat:
90% of people in our culture buy things they can't afford. Are you one of them?
I am not a financial planner, nor am I a CPA. I do however, read a lot about money, investing, and things like that. I know my fair share about those things but so do most of us. (I will be getting most of my factual information from Dave Ramseys' books/ websites, just in case you long for more!) What is the most interesting to me is that:
WINNING AT MONEY 80% BEHAVIOR AND 20% HEAD KNOWLEDGE.
Do you find that as shocking as I do? I would think that means we all know how to run our finances. Then why is our country in such shambles? If it only takes 20% knowledge, then what is going on? We can't all be that sheltered from the information!
Well, its hard. Its HARD to say no to the things you want, the toys, the games, the food, the treats, in favor of doing the things you should do. But, I am here to motivate you! Let me start with this Shocking Stat:
90% of people in our culture buy things they can't afford. Are you one of them?
Sellah's photo goes to the Capital!
Monday, February 22, 2010
Well, I was bursting at the seams with Pride yesterday! My "baby" is an artist!Her artwork was chosen from 650 other students at Electa Quinney to be in the Wisconsin Art Education Association Show for Youth Art month. Once her artwork arrived at the Art Gallery in Green Bay, it was among all the other top artwork from 16 Northeastern Wisconsin counties. From this talented pool, they have chosen only 50 pieces to travel to the Capital Rotunda in Madison.
We will be traveling on Friday March 19th to attend the award show. I can't tell if she is more excited about the day off of school or having her artwork get such attention.
No need to ask Why
Tuesday, February 2, 2010
PAIN
Pain humbles the proud. It softens the stubborn. It melts the hard.
Pain humbles the proud. It softens the stubborn. It melts the hard.
My budding artist.
Monday, February 1, 2010
My youngest daughter, Sellah has just received the news that a piece of her artwork, modeled after Vincent Van Gogh's Starry Night, has secured a place in the Wisconsin Educational Artwork Awards. Here is a picture of it for you to enjoy, I will be sure to let you know how she does and whether or not it will travel to the Capital of WI and be displayed at the Rotunda.
Smile! It's tax time!
Tuesday, January 26, 2010
Ten Things You Should Know about the Making Work Pay Tax Credit
Many working taxpayers are eligible for the Making Work Pay Tax Credit, a provision created by the American Recovery and Reinvestment Act in early 2009.
Here are 10 things the IRS wants you to know about this tax credit to ensure you receive the entire amount for which you are eligible.
1. In 2009 and 2010, the Making Work Pay provision provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns.
2. For taxpayers who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes.
3. Taxpayers receiving less than the full amount of the allowable credit through reduced withholding will be entitled to claim any remaining credit when they file their tax return.
4. The amount of the credit actually received during 2009 in the form of reduced withholding will be reported on your 2009 tax return. Taxpayers who do not have taxes withheld by an employer during the year can claim the credit on their 2009 tax return filed in 2010.
5. Taxpayers who file Form 1040 or 1040A will use Schedule M, Making Work Pay and Government Retiree Credits to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit.
6. Taxpayers who file Form 1040-EZ will use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Tax Credit.
7. In 2010, you may notice that your paychecks are slightly lower than in 2009. The slight decrease may be because of the Making Work Pay Credit. Most of the credit for wage earners is distributed through reduced withholding. The credit – which was spread out over nine months last year – is being spread over 12 months this year. A little less credit in each paycheck means slightly higher withholding. But don’t worry, in the end it all adds up.
8. Certain taxpayers should review their tax withholding to ensure enough tax is being withheld in 2010. Those who should pay particular attention to their withholding include: married couples with two incomes, individuals with multiple jobs, dependents, pensioners, Social Security recipients who also work, and workers without valid Social Security numbers.
Having too little tax withheld could result in potentially smaller refunds or – in limited instances – small balance due rather than an expected refund.
9. To ensure your current withholding is appropriate for your individual situation, you can review Publication 919, How Do I Adjust My Tax Withholding? You can also perform a quick check of your withholding using the interactive IRS Withholding Calculator on IRS.gov.
10. If you find you need to adjust your withholding, submit a revised Form W-4, Employee's Withholding Allowance Certificate to your employer.
Visit IRS.gov for more information about the making Work Pay Tax Credit, Schedule M, Form W-4 or Publication 919. You can also call 800-TAX-FORM (800-829-3676) to order forms and publications.
Many working taxpayers are eligible for the Making Work Pay Tax Credit, a provision created by the American Recovery and Reinvestment Act in early 2009.
Here are 10 things the IRS wants you to know about this tax credit to ensure you receive the entire amount for which you are eligible.
1. In 2009 and 2010, the Making Work Pay provision provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns.
2. For taxpayers who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes.
3. Taxpayers receiving less than the full amount of the allowable credit through reduced withholding will be entitled to claim any remaining credit when they file their tax return.
4. The amount of the credit actually received during 2009 in the form of reduced withholding will be reported on your 2009 tax return. Taxpayers who do not have taxes withheld by an employer during the year can claim the credit on their 2009 tax return filed in 2010.
5. Taxpayers who file Form 1040 or 1040A will use Schedule M, Making Work Pay and Government Retiree Credits to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit.
6. Taxpayers who file Form 1040-EZ will use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Tax Credit.
7. In 2010, you may notice that your paychecks are slightly lower than in 2009. The slight decrease may be because of the Making Work Pay Credit. Most of the credit for wage earners is distributed through reduced withholding. The credit – which was spread out over nine months last year – is being spread over 12 months this year. A little less credit in each paycheck means slightly higher withholding. But don’t worry, in the end it all adds up.
8. Certain taxpayers should review their tax withholding to ensure enough tax is being withheld in 2010. Those who should pay particular attention to their withholding include: married couples with two incomes, individuals with multiple jobs, dependents, pensioners, Social Security recipients who also work, and workers without valid Social Security numbers.
Having too little tax withheld could result in potentially smaller refunds or – in limited instances – small balance due rather than an expected refund.
9. To ensure your current withholding is appropriate for your individual situation, you can review Publication 919, How Do I Adjust My Tax Withholding? You can also perform a quick check of your withholding using the interactive IRS Withholding Calculator on IRS.gov.
10. If you find you need to adjust your withholding, submit a revised Form W-4, Employee's Withholding Allowance Certificate to your employer.
Visit IRS.gov for more information about the making Work Pay Tax Credit, Schedule M, Form W-4 or Publication 919. You can also call 800-TAX-FORM (800-829-3676) to order forms and publications.
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