Now is the Ideal time to make changes to tax withholding

Your W-4 determines how much money your employer withholds from your paycheck to pay taxes based on the number of allowances you claim. Unfortunately, after filling it out once, most people do not give it a second thought.

Consider adjusting your withholding if:
-You paid a large tax bill
-You got a large refund
-You've experienced a big life change, such as marriage, divorce, retirement or birth of a child
-You expect to earn income from a home business that doesn't withhold taxes from your earnings

To increase the amount of taxes withheld from your paycheck, you need to decrease the number of allowances you claim.
OR you can specify a dollar amount. For example, if you want your employer to withhold an additional $100 in taxes from each paycheck, write that number on line 6 of your W-4.

If you choose to be more precise, you can go to the irs.gov to use the withholding calculator- you will need your most recent pay stub and your 2010 income tax return.

Finally, dont forget the most important step- once you have decided to make a change, see your payroll person and get the W-4 changed!

Should I refinance?

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.

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.

Financial Assistance

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?

Sellah's photo goes to the Capital!

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

PAIN

Pain humbles the proud. It softens the stubborn. It melts the hard.

My budding artist.

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.