Understanding money, one blog at a time

With the rising costs of everything on Earth, credit cards and financing has become the 'American Way' to get the things you want.  Many people look at debt as the saver of all desire.  "I really want this vacation, I'll just put it on a credit card" or "I want some new furniture this weekend, I'll just get a store credit card". NO! Bad Bad Bad! Credit should be used as a tool or vessel, to make you even more successful. That's the trick. It's ok to have credit cards, but it's not OK to max them out, or buy things your don't need. Look at it this way: DEBT IS STOPPING YOU FROM FINANCIAL FREEDOM. Period pooh . As long as you owe someone, you'll always be broke.  Lucky for you, I have the most effective way to get out debt in 3 easy steps. Step 1 Save a nice nest egg for emergencies.  Take a few dollars from each check and have it automatically transferred to a separate account. Your saving goal should be a set amount, so t...

New and old business owners alike have met with this struggle at some point in their entrepreneurial journey. Your business is thriving and you need help! You decide to hire one person. Excited at the new relief and separation of duties, you bring the candidate of your dreams in to duplicate yourself (insert mass exaggeration).   The time has come to issue their first paycheck. After realizing that you have to pay additional taxes and worker’s compensation to employ this person, you revert to paying them as a contractor.   “Ok” you think, “this will save some money and still get the job done”. You’re living the dream for two years when suddenly, you receive a certified letter from the IRS. You are being audited! Let’s transgress into a real life story.   This happened to a previous client of mine.   In this case, they had 17 people working as contractor’s when really, they were employee’s.   After a 30 day debate, the IRS hit my client with a $45,000 bill. T...

Has the IRS intercepted your tax refund?  The truth is that this happens to people every year!  Why did this happen to you, and what can you do about it? Reasons Why Your Refund has been Offset There can be several reasons why your refund has been has been or will be intercepted. Past-due federal tax; State income tax; State unemployment compensation debts; Child support; Spousal support; and Federal non-tax debt, like student loans. Find Out Why MY (OUR) Tax Refund was Offset If you are married filing a joint return, the IRS will take your refund if your spouse has any of the above mentioned past due debts! Yes-Your spouse. However, there is relief for this.  You can complete and mail an injured spouse allocation IRS Form 8379 follow this link →   https://www.irs.gov/pub/irs-pdf/f8379.pd  to complete the form.  Follow this link for instructions on where to mail your form → https://www.irs.gov/pub/irs-pdf/i8379.pdf . This form will infor...

Greetings and money blessings to you my friends! Oh how quickly time flies.  Tax season has approached us yet again.  For those of us who pay taxes annually, it's a somber time and also a procrastination to stretch the dreadful filing out to April 15th. However, for those of us who receive refunds from our Federal government and state agencies it is a wonderful and stimulating time 😉😉😉.  I have a few tips to make that money stretch possibly until the following tax season. Choose a 'Don't Touch Me Amount' Have a pre-determined amount in your mind that you will set aside upon immediate receipt of your refund.  This could be a start to your savings account or an addition.  My recommended amount would be 50% of your refund or more. That sounds like a lot, however this is additional income.  If you have been able to survive without it the last 11 months, then you will be able to survive with out it again! Budget the Remaining Money Let's say your to...

Hello all of my beautiful people.  I hope that this blog reaches you in limitless spirits! So I have a friend (whom shall remain nameless) that is in a hurry to purchase a house that she has been renting.  The owners of the house are ready to sell as the entire area has increased in property value. She's a veteran and has access to a VA Home Loan but there is only one problem; her credit score.  This is a really close friend of mine, almost like a sister. So, she came to me asking how she can bump up her credit score in a hurry.  I said, "oh that's easy, I'll add you as an authorized user to a few of my credit cards". What does this mean you may ask?  Real life example: I have credit cards with high limits that I do not use (because I'm fabulously frugal right ❤) .  By holding credit cards with high limits and zero balances, it contributes to my modestly high credit score due to low utilization.  Credit Utilization is you having access to...

It's April 20th, 2017.  I get an email from my attorney requesting a meeting.  The prosecution wants to offer me a deal. Probation. The chance to ensure that I stay home with my kids, and the fact that I can avoid another $10-15 thousand in lawyer fee's in exchange for representation at trial?  An offer so tempting, I could not refuse. Regardless of how innocent I felt, I just couldn't pass.  But with my offer came my husband's offer:  Ten years in prison. I had been upset with my husband while we were separated. For so many reasons, I was just angry.  But ten years in prison, without our children? That hurt more than anything. I hurt for my kids and I hurt for my husband. He had never been to prison and for this sentence to be so long. The truth is that he had done some bad things that were very wrong and very illegal. But He was a great dad. Always was a great father. May 22nd 2017 we woke up, got the kids ready for school and daycare and dropped t...

Once the smoke cleared, one of the very first things I had to do was take accountability.  Although I had not done a huge portion of the things I was charged with, I did have to take responsibility for whatever role I played: knowingly or unknowingly. Life was a whirlwind adjusting to life as a single parent.  I had to move fast enrolling the kids in daycare so that I could continue to work. I had to be mom and dad during the week.  My husband made bond and would have the kids on the weekend.  Which was a huge relief for me. One Saturday in June 2016 while the kids were with their dad,  I sat down in bed and wrote ‘$10,000 by July 24th” (no year) on an orange sticky note and posted it on my wall. I saw it every time I woke up and every time I went to sleep. This sticky note was now my accountability partner.  I couldn't let it, or myself down :). BTW, I’m here to tell you that $10,000 is not a lot of money. But to me, it was. I had $48.00 in the bank a...