Savings Investing Children Greed Miscellaneous Business Opportunities

MISCELLANEOUS

Spending plan!!

Have a spending plan for this month. Get a receipt for EVERY PENNY you spend for just the next 30 days (No need to do this every month). Add up all of your receipts at the end of the month to see how much money you actually spent.

You will be surprised how quickly that it adds up. A couple of bucks for a candy bar here and a bottled water there really adds up. A buck or 2 at the dollar store and 5 bucks at McDonalds adds up without your thinking about it much. The point of a spending plan isn't to see what you can cut necessarily, but to see where the money is going. So you can figure out a plan based on that. And if at the end of the month you think $100 spent is too much at McDonalds, then you could make those changes. But unless you get the receipt and know EXACTLY where it's all going, it could be hard to keep track of your spending. We all have busy lives and don't think about our spending all the time. But getting receipts of every penny you spend will help to show you where your money is going.

Just spend what you normally do this month, but get a receipt or make one if a receipt isn't available. For example, you won't get a receipt for the $1 that you spend at the vending machine, so you will have to create your own receipt. At the end of the month, gather all the receipts and put them into categories, i.e. housing, food, entertainment, clothes, car, or giving, etc. You will find out EXACTLY what you are spending your $$$ on and how much. You can then look at your income and if you need to cut back on something. For example, instead of spending $50 on fast food, you could probably get by with just $20.

The little stuff doesn't always hit you because it's just part of daily life. Cutting back on just a few of the unimportant things can make a BIG difference in your budget.

Start collecting your receipts at the start of the month!

BUYING A CAR AND PAYING CASH!

With interest rates being so low for the last few years, car dealerships have been offering great interest rates on buying a new car.

What has happened is that so many people have bought brand new cars because of interest rates being as low as 0%. They may not have normally bought a new car, but at low interest rates they went out and bought one. The way that this benefits you and me is that there is are TONS of quality used cars available now, because so many people bought new cars and traded in their old ones. You get more car for your money today than you did 5-7 years ago. You can find great reliable transportation for $3000-$10,000, and if you just need a car to drive back and forth to work, then you can find one for cheaper than that.

Always pay cash for your car. If you currently have a payment on your car of $200 a month, once you pay off your car, continue to make payments of $200 a month into an account for a future car purchase. If you do this every month for one year, then you would have over $2,400 in your account. And after 2-3 years you could sell your current car and have $5,000-$7,000 to pay CASH for a New used car for yourself.

Tax Deduction Mortgage Myth

This could be costing you Thousands of dollars each year. The myth works like this: The interest on your mortgage is tax deductible. This is great for some people, because it is the biggest tax break they get. The problem with it is if you are using it, you're actually LOSING MONEY!!! Let's say you're in the 28% tax bracket, and let's say you paid $10,000 this year in interest on your mortgage which means you could deduct $2,800 off your taxes ($10,000 x 28%= $2,800). You continue to use your mortgage deduction excuse for not becoming debt free since you think you will lose a big tax deduction if you have your house paid off. Well, it is true that you will lose your tax deduction.

However, you're paying $1 of interest to receive .28 cents back in a tax write-off. How in the WORLD is that a good investment? YOU ARE LOSING .72 CENTS FOR EVERY DOLLAR YOU SPEND!!

If you think that is a good return on your money, send me some of your money, and I will give you back .30-.40 cents for every dollar that you send me. That is basically what a person is doing. Of course, use that Tax Deduction if you aren't in the position to pay off your mortgage. But if you have the ability to pay off your mortgage, DO IT. Don't use this Mortgage deduction myth as a reason to keep your Mortgage.

You will be THROWING AWAY BIG $$$$.

I know some will say "But I can get a better return in stocks or real estate than in paying off my mortgage." Well re-read the Investing section of this site, and you will see that it is much wiser to pay off your mortgage first.

Thanks for reading this site. I know it can be worth AT LEAST $500 back into your pocket if you apply the information from this site.

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Thank you

Steve Hoven
alleycatnews@aol.com

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