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A New Day

Know Your Money
Tuesday – January 2, 2018

A New Day
By Donell Edwards

 

The book is closed, the year is done, The pages full of tasks begun. A little joy, a little care, Along with dreams, are written there. This new day brings another year, Renewing hope, dispelling fear. And we may find before the end, A deep content, another friend. – Arch Ward

 

Hello to all of my followers and thank you for your support and patience.  If you have been following my blog for some time, you know that I have not written anything for almost a year.  I apologize for my absence, but I embarked on a new venture that took much more time than I imagined, but it was well worth it.  In March of last year I started my own talk radio show, CWR World News.  The title of that program was later changed to Donell Edwards: VIEWPOINTS.  On the program I interview a wide range of people on various topics with the intent of informing and educating listeners, and in some instances, hopefully changing the attitudes of listeners about social issues that are racially divisive.

After doing the program for several months, I recognized that I had an opportunity to help people through provoking thought and conversation about a number of vital issues and important causes.  However, I understood that I could not accomplish this task by myself, so I started my own talk radio network, The CWR Talk Network, which was launched in October 2017.

One of the causes that I have championed for many years is financial literacy, and one of our programs is The Lionel Shipman $hape Your Finances Show, with host and financial expert, Mr. Lionel Shipman, which is a financial and life empowerment show that focuses on our lives around money and finances.  Lionel interviews interesting guests that include business owners, financial advisors, insurance agents, educators and other professionals that show “how to” improve personal finances in many practical ways, as many of them share their own personal experiences.  The show also provides listeners with useful financial information that will help improve their financial lives and give life lessons to help them live life to the fullest. Listen to Lionel every Tuesday night at 7:30 PM Central and 8:30 PM Eastern time online at http://www.blogtalkradio.com/cwrtalkradio

 

Lionel Shipman Host: The Lionel Shipman $hape Your Finances Show

 

We are in negotiations to add another financial literacy program to complement Lionel’s that focuses strictly on personal finance, from budget planning, to getting out of debt, managing credit, saving, and investing.  Both of these programs will provide professional information about financial literacy, breaking the chain of generational poverty in some instances, and learning how to build wealth.  We hope to premier that program early in 2018.

Also, we have special plans for Financial Literacy Month in April.  Here are some of the guests that will appear on my show, Donell Edwards: VIEWPOINTS during Financial Literacy Month:

Monday – April 2, 2018  –  Everything You Need to Know to Save On Your Taxes
Guest:  Mr. Dean Michael, Chief Executive Officer and Founder of Tax Help MD

Dean Michael
Tax Expert

 

 

 

 

 

 

Thursday – April 5, 2018 – Understanding Medicare and Obamacare, and How They Affect Your Finances
Guest:  Ms. Danielle Kunkle, Medicare insurance expert and founding partner at Boomer Benefits

Danielle Kunkle
Medicare Expert

 

 

 

 

 

 

Monday – April 9, 2018 – How to Maintain or Take Control Of Your Finances
Guest: Ms. Shannon Ryan, Certified Financial Planner, Founder of The Heavy Purse

Shannon Ryan
Certified Financial Planner, Founder of The Heavy Purse

 

 

 

 

 

 

 

Monday – April 16, 2018 – Successfully Overcoming Life’s Setbacks, and Boldly Facing Fears
Guest:  Ms. Betsy Pake, Author, Speaker, and Success Coach

Betsy Pake
Author, Speaker, and Success Coach

 

 

 

 

 

 

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?  If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to comments@knowyourmoneyglobal.com.

 

 

Donell Edwards Publisher, Writer, Speaker

Donell Edwards
Publisher, Writer, Speaker

About Donell Edwards: Donell Edwards is President of CWR Media Group which includes CWR World News Talk Radio Show and CWR World News & Information Service, a daily online newspaper.  He is also a professional speaker, freelance writer, and entrepreneur.  

To book Mr. Edwards to speak at your next event, contact:

Donell Edwards Enterprises
13111 W. Markham St.
Suite 116
Little Rock, AR 72211
DLEdwards@DonellEdwardsEnterprises.com

 

Follow us on Twitter and Facebook for more information about personal money management.

twitter-ilike-us-on-facebook

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial planner. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

Copyright © 2017 CWR Media Group – All Rights Reserved

 

 

The Conversation Everyone Avoids, That Almost Everyone Should Have

It’s Financial Literacy Month.  Do You Know Your Money?

 

Know Your Money
Tuesday – April 5, 2017

The Conversation Everyone Avoids, That Almost Everyone Should Have
By Donell Edwards  

 

According to research conducted by ValuePenguin, an organization that provides objective analysis to help consumers, 38% of American households carry month-to-month credit card debt. The ValuePenguin study also discovered that “Households with the lowest net worth (zero or negative) hold an average of $10,308 in credit card debt.” ( Sources: U.S. Census Bureau, U.S. Federal Reserve, 2013 Survey of Consumer Finances)

A 2016 GoBankingRates.com survey found that 69% of Americans have less than $1,000 in savings, while 34% say they have no savings at all. The survey cites two factors as major contributors to this problem: (1.) “One of the big reasons people aren’t saving more is likely because they are living beyond their means.” And (2.) “… credit cards and other cashless payment options such as Apple Pay have made it even easier to spend.”

Another very enlightening fact was revealed in a 2013 Gallup Poll, which found that “only 32% of American households were sticking to a monthly budget.” Which means that 68% of the population either does not have a budget or fails to stick to a monthly budget.

Alarming statistics like these demonstrate a need for personal finance management skills that many Americans are missing.

 

 

 

Personal finance management affects a variety of areas including a person’s income, family security, standard of living, and savings. Financial planning helps people determine both short and long-term goals in order to create a balanced plan to meet those goals.

As a result of my own personal experience with money management, what I have learned from those experiences, conversations with others knowledgeable about this subject, and research that I have conducted, it has become obvious to me that many people need help with personal money management. That is why I founded this blog, Know Your Money Global (KYM), in 2013 to promote financial literacy and encourage effective money management.

This blog, KnowYourMoneyGlobal.net, was designed to promote financial literacy, provide valuable news and information about personal money management, personal finance, credit, debt management, tax savings and wealth building. The blog encourages readers to create their own dynamic personal cash economy, rather than using the credit-driven economy that so many are accustomed to.

We are dedicated to fostering the concept of a community of individuals, groups and organizations that share our mission of improving financial literacy and effective money management. Because of this, our Know Your Money Global Blog features posts that combine personal experiences with the expertise of industry professionals in order to give readers well-rounded information to take away.

Additionally, we provide periodic check-ups so that readers may evaluate their progress and identify areas where they may need to focus more attention. We also provide information about valuable tools and resources that readers may use in their effort to maintain or improve their money management skills.

Beginning Monday – April 17, 2017, Know Your Money Global will introduce the free 13 week KYM Money Success Strategies Institute. The Institute will provide step-by-step instructions on how to improve money management skills, how to use credit wisely, how to get out of debt, and how to build wealth.

If improving your personal money management skills is important to you, register today for our KYM Money Success Strategies Institute, or if someone you care about needs this information, encourage them to register. To register, go to our Sign-Up Form tab and provide the required information.

There is no better time to start making knowing your money your way of life than now, during Financial Literacy Month.  The KYM Money Success Strategies Institute begins Monday – April 17th.  So sign up right now!

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?  If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to comments@knowyourmoneyglobal.com.

 

Donell Edwards
Publisher, Writer, Speaker

About Donell Edwards:  Donell Edwards is President of CWR Media Group which includes CWR World News Talk Radio Show and CWR World News & Information Service, a daily online newspaper.  He is also a professional speaker, freelance writer, and entrepreneur.  

To book Mr. Edwards to speak at your next event, contact:

Donell Edwards Enterprises
13111 W. Markham St.
Suite 116
Little Rock, AR 72211
DLEdwards@DonellEdwardsEnterprises.com

 

Follow us on Twitter and Facebook for more information about personal money management.

twitter-ilike-us-on-facebook

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial planner. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

Copyright © 2017 CWR Media – All Rights Reserved

Budgeting Is Not Bad

 

Lionel Shipman Owner - Shipman Consulting

Lionel Shipman
Owner – Shipman Consulting

Lionel Shipman is the owner of Shipman Consulting, a financial empowerment firm specializing in helping people improve their financial outlooks.  The goal of the firm is to educate, motivate, and empower people to maximize their financial lives and build a solid financial foundation. Lionel is also an energetic and engaging motivational speaker and presenter for educational conferences, school events, corporate events, church meetings and other events. Please visit the firm’s website for information at

Website: ShipmanConsulting.com   –   Email address: Contact@ShipmanConsulting.Com

 

 

 

Know Your Money
Wednesday – September 12, 2016

Budgeting Is Not Bad
By Lionel Shipman

I have often wondered why budgeting seems to invoke tension in consumers.  It is such a great tool in helping people and companies operating proficiently with money. However, it is often looked at as a tedious task for many people, even though many corporations depend upon it. Every day, large companies throughout the world function utilizing a variety of budgets for departments such as payroll, purchasing and marketing. If companies and organizations can operate successfully and benefit from using budgets, then surely we consumers can do the same

Planning Budget

What is a budget? A budget is a guide that tells you whether you are headed in the right direction, financially speaking. It is basically a summary of your income and expenses. It helps determine whether your finances will reflect a profit or a loss. It is also a tool used to help you allocate or distribute your income, as it helps you see and understand your current financial outlook or status (how much you make, how much you spend, how much you have, and what you owe). Along with setting goals, budgeting can help you improve your financial outlook.

Every day, consumers worry about making their financial ends meet. Many have accumulated credit card debt and other debts, and they have very little to save for retirement. For many people, when life happens and causes an unpleasant financial situation, they worry and become afraid and stagnant. It happens from time to time. And, it can happen to anyone. Instead of worrying, start taking charge of your finances. You can do something about it, and budgeting is a good place to start. Establishing and maintaining a budget can help you get back on your feet and improve your financial outlook.

Here are five reasons why budgeting works:

  • A budget lets you control your money, instead of your money controlling you.
  • A budget will tell you if you are living within your means.
  • A budget can help you meet your savings goals.
  • A budget frees up extra money so you can use it for truly important things.
  • A budget helps you prepare for emergencies or unanticipated expenses.

Budgeting is not a one-time event in life. Budgeting is a life-time event. It should become a part of your life, for the rest of your life.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial planner. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

Copyright © 2016 CWR Media – All Rights Reserved

Financial Literacy Month 2015: Defeating Debt

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

To book Mr. Edwards to speak at your next event, contact:
Donell Edwards Enterprises
13111 W. Markham St.
Suite 116
Little Rock, AR 72211
DLEdwards@DonellEdwardsEnterprises.com

 

We’re Celebrating Financial Literacy Month

Know Your Money
Tuesday – April 28, 2015

Financial Literacy Month 2015
Defeating Debt
By Donell Edwards

One of the most important steps in financial literacy is understanding debt.  How much debt one has, where it came from, and how to eliminate it.  It should be your goal as you become more financially literate to be debt free.

I share with you today an article written by a blogger named Brian who shares his personal experience with getting out of debt.  The article is entitled, “How to Kill Over $100,00 of Debt,” and appears on the Moneythink website.   Brian and his family eliminated $109,ooo in debt in a little over four years.

A great point to take from the article is that getting out of debt takes time; you didn’t get into debt in a day or a short period of time, and you won’t get out of debt without making a commitment for the long haul.

Here is one of the most profound things that Brian learned, “…what I found was that most personal finance principals are commons sense. You need to have a plan for your money in the form of a budget; spend less than you make; create an emergency fund; and prioritize needs over wants.”  These are the same things that we emphasize in this blog, helping people to act on these things is the challenge.

We strongly encourage that readers review this article.

Here is the link to the article:  http://moneythink.org/blog/kill-100000-debt/

 

 

 

Here is today’s step to financial wellness from Thirty Steps to Financial Wellness developed by Money Management International:

Step 22 – Identify Ways to Reduce Spending

 

EVENTS AND RESOURCE LINKS:

Hosting A Financial Literacy Month Event

2015 National Savings Forum

Financial Literacy Month Articles from Huffington Post 

The FoolProof Foundation

FoolProof Teacher

FoolProof Solo

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We welcome your comments and encourage you to share your knowledge about personal money management and financial literacy.  We hope to be a conduit for others to disseminate information on this subject to promote financial literacy and to enhance knowledge and understanding of the subject.  If you have comments you would like to share please send them to: 

Comments@knowyourmoneyglobal.com.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2015 CWR Media – All Rights Reserved

 

Financial Literacy Month 2015: A Call To Action

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

To book Mr. Edwards to speak at your next event, contact:
Donell Edwards Enterprises
13111 W. Markham St.
Suite 116
Little Rock, AR 72211
DLEdwards@DonellEdwardsEnterprises.com

 

We’re Celebrating Financial Literacy Month

 

Know Your Money
Friday – April 24, 2015

Financial Literacy Month 2015
A Call To Action
By Donell Edwards

As we approach the end of Financial Literacy Month 2015, it is time to take action if you are really serious about getting your finances in better condition, regardless of your station in life.

We have covered much over the past three and one-half weeks, and there is more to come next week.

I highly recommend the Money Management International Thirty Steps to Financial Wellness program as a means of starting and successfully maintaining your personal money management.  If you already have your finances in good condition, this is still an outstanding program to implement to review what you are doing and to improve on your efforts.

If you have been following our blog on a daily basis you know that some of the program may be easily implemented, while other elements involve time and effort and may take longer, some even being done on a continuous basis.

So, don’t be overwhelmed.  Make the commitment to do whatever it takes.  Stick with this program and make it work for you.

Check back a year from now on your progress and you will be surprised how far you have come.

One of the very important things I want to focus on to day is making sure that you are already saving, or that you are working toward saving on a regular basis, and that you know what your best options are for saving.

 

 

Businesswomen Balancing Over Money

 

We have provided some great information in past posts on this blog about saving.  One method that I particularly like is the 52 Week Savings Plan.  This plan helps develop the habit of saving by starting out with only a dollar a week and increasing the amount in increments of one dollar each week.  You may learn more about this method if you are not already familiar with it clicking on the link in this paragraph.

We also provided options on where to save in our blog post of May 16, 2014, Making The Most Of Your Savings.  You may read that post here.

I am aware that some reading this blog may have challenges that make it very difficult or even prohibitive for them to save at this time.  I encourage you not to give up and make it a goal to do all of the things necessary to get into a position where you can save.  How do you do that?  In the credit.com blog post, “10 Ways to Save Money When You Make the Minimum Wage,” there are many suggestions to help you.  Just click on the link above to read the article.

My challenge to you is to make the most of this Financial Literacy Month and start making money smart decisions, use the Money Management International Thirty Steps to Financial Wellness plan, and make sure that start or continue saving.

 

Here is today’s step to financial wellness from Thirty Steps to Financial Wellness developed by Money Management International:

Step 20 – Identify and Plan for Periodics

EVENTS AND RESOURCE LINKS:

Hosting A Financial Literacy Month Event

2015 National Savings Forum

Financial Literacy Month Articles from Huffington Post 

The FoolProof Foundation

FoolProof Teacher

FoolProof Solo

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We welcome your comments and encourage you to share your knowledge about personal money management and financial literacy.  We hope to be a conduit for others to disseminate information on this subject to promote financial literacy and to enhance knowledge and understanding of the subject.  If you have comments you would like to share please send them to: 

Comments@knowyourmoneyglobal.com.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2015 CWR Media – All Rights Reserved

 

Financial Literacy Month 2015: Be Financially Smart About Income Tax Refunds

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

To book Mr. Edwards to speak at your next event, contact:
Donell Edwards Enterprises
13111 W. Markham St.
Suite 116
Little Rock, AR 72211
DLEdwards@DonellEdwardsEnterprises.com

 

We’re Celebrating Financial Literacy Month

Know Your Money
Friday – April 17, 2015

Financial Literacy Month 2015
Be Financially Smart About Income Tax Refunds
By Donell Edwards

The purpose of the Know Your Money Blog is to educate and inform readers so that they become better at managing money and making money-wise decisions, and to help eradicate generational poverty for those who find themselves trapped in this vicious cycle.  This includes helping readers with the step-by-step process of identifying destructive spending habits, carefully and regularly monitoring spending, developing and rigidly living by a realistic budget, learning to make wise spending choices, working to transform long standing negative behavioral patterns, acknowledging the need for assistance with personal money management, accepting accountability for acquiring knowledge and information to improve money management skills, and providing readers with encouragement and support to make the commitment to change and to find the willpower to resist the temptation to allow spending to spiral out of control.  Ultimately our goal is to help each individual who reads Know Your Money to become more financially literate and to achieve personal wealth free from debt.

So, today’s post about adjusting tax withholdings is very relevant to our mission to help readers improve their personal money management by adding money to the personal or family budget by correcting the W-4.  It is important to understand that this is a personal decision, and some may at this point in life be in a position where they really feel that they need the large tax refund more than the increase in monthly income, that is a personal choice.  However, the purpose of today’s post on tax refunds is to educate and inform readers so that an informed decision can be made in regard to whether to correct the W-4 or not, and if now is not a good time, to make it a goal that at some point in the near future the income tax refund you receive for that year will be the last tax refund you will ever receive.

We also want to caution readers not to make changes to your W-4 yourself, regardless of how qualified you may feel, especially in completing the Adjustments and Deductions Worksheet on page 2 of the W-4 form.  If you work with an experienced and reputable tax professional you should avoid any mistakes that result in having to pay taxes when you file, or at the very least, owing only a small amount.

 

Stressed Over Money

 

In today’s post we examine two articles listed in yesterday’s blog from two writers who think it is a good thing to get an income tax refund, and we will explain why we disagree with them.  The writers and their articles are representative of the thinking of many others who support getting a tax refund.

One of the articles is “5 Reasons Why A Big Tax Refund Can Be A Good Idea” from USA Today, written by Dave Carpenter.   The other article is “Everything You Know About Getting A Tax Refund Is Wrong” from Daily Finance, written by Rich Smith.  Both articles support the idea of getting a tax refund and cite their reasons.  Listed below are the reasons cited by each writer:

 

Dave Carpenter – Associated Press

  • Avoids debt trap of owing the government taxes
  • Provides a welcome windfall
  • Protects against tax surprises from unexpected events in life that affect tax liability
  • Forces Savings and prevents squandering money
  • Costs little in lost opportunities because of the low interest rates for CDs and money-market savings accounts

Rich Smith – Motley Fool

  • Low interest on savings accounts
  • Miscalculating withholdings resulting in owing taxes with penalties
  • MoneyRates.com study shows 69% of people (who were polled) use their refund wisely and save at least half

 

In my response to both articles it must be acknowledged that not everyone is in the same financial situation and so obviously the options are going to be different depending on an individual’s circumstances.  For this post we will consider that everyone is in one of three categories:

Living from paycheck-to-paycheck and financially distressed with no money left over at the end of the month, and probably not enough money to pay bills and expenses. We will call this Group 1.

In fair to good financial condition with money left over after paying bills and monthly expenses.  We will call this Group 2.

Finally, those in excellent financial condition with money to invest.  We will call this Group 3.

The position taken by both Mr. Carpenter and Mr. Smith are very similar.  They both cite low interest rates on savings and miscalculating withholdings resulting in owing taxes at tax times as major reasons that having too much withheld is a good idea.  First of all, both of these gentlemen and everyone who agrees with them assume that everyone who gets a tax refund only has the option of putting the money into a savings account if they don’t spend it, or at least that is the inference.  If that was the case I would agree with them.

But as previously mentioned, the options for those in Group 1, 2 and 3 are not the same.  Those in Group 1 most likely need all of their return to pay bills, make purchases that have been delayed, and do other things that are important to them that they would otherwise not be able to afford.  They most likely are not going to save.  This is the group that we hope will make enough progress by next year that they will have some of the same options as those in Group 2 and Group 3.

Although those in Group 2 and Group 3 could put their money into a savings account, most likely they are more money savvy than that, or at least they should be.  The purpose of this blog is to ensure that everyone that follows over time will have the knowledge to make wiser decisions.  Obviously putting money into a savings account with almost no interest, that may have a monthly service charge, and that penalizes depositors if their monthly average balance falls below a certain amount is not wise money management.

According to the IRS the average tax refund is approximately $3,000.  For those in Group 2 and Group 3 who do not already invest or have a financial planner, they have the option of purchasing stocks and earning a much greater return on their money than with a savings account.  There are fees involved, but in the long run investing is a far better option for those with enough money to invest.  This is another component of our blog that will be discussed after the proper groundwork is laid.  If you do go this route and you have never invested before, be sure to do your homework and carefully select a financial planner to work with.

In my opinion, saving should not be an option for anyone in either group because of the small return in today’s market.

The other reason Mr. Carpenter and Mr. Smith cited for supporting tax refunds was the risk of owing money at tax time.  Although working with an experienced tax professional does not guarantee that no taxes will be due if the W-4 is adjusted, the risk is very, very low if accurate and complete information is provided.  There are risks with anything in life, the smart people anticipate risks and take action to ensure any affect on them is minimum.  Working with an experienced and reputable tax professional in adjusting your W-4 is the smart thing to do and should provide you with sufficient protection from any risks.

Going back to Group 1, even if there is not any money to work with to invest, paying down debt is a money wise option.  Another option is to begin building your emergency fund, which we will also discuss in much greater detail in coming months.

Two other reasons Mr. Carpenter provides for supporting a tax refund are (1.) Providing a windfall and (2.) Forces saving that prevents squandering money.  Although Mr. Smith cites a MoneyRates.com survey in which 69% of those participating reported they used their returns wisely and saved at least half of the money.  Obviously this was a random sample and did not include all taxpayers receiving tax returns.

The average taxpayer does not use this so called “windfall” wisely, but instead spends wildly and without restraint, and in a few days or weeks it is all gone.  Mr. Carpenter’s opinion that by having too much money withheld for taxes forces a person to save and receive a large sum at tax time, rather than squander the extra money that would be received in the paycheck each payday.  The problem with this theory is that if the person is the type to squander the money away each payday, getting a large tax refund only gives them more money to squander away.

This blog, as we have repeatedly mentioned, is designed to help people overcome thinking and habits that result in squandering money away. Certainly that is a problem for anyone not really serious about improving their money management skills.  But for those who want and accept the information provided by the contributors to this blog, and who take the extra step of reading articles from our “Suggested Reading” at the end of most of our posts and who do additional research on their own to educate themselves, they are developing the willpower and transformed money management philosophy to resist the temptation to squander away money.

In conclusion, adjusting the W-4 so that only what a person owes is withheld from their payroll check is a personal decision.  But there is overwhelming evidence that having only what is owed withheld is the money wise thing to do.  If you need more convincing watch the video below, “Don’t Get A Tax Refund”, featuring nationally acclaimed financial expert Suze Orman, who agrees that getting a tax refund is not the financially smart thing to do.

 

 

Here is today’s step to financial wellness from Thirty Steps to Financial Wellness developed by Money Management International:

Step 15 – Secure Your Financial Future

 

EVENTS AND RESOURCE LINKS:

Hosting A Financial Literacy Month Event

2015 National Savings Forum

Financial Literacy Month Articles from Huffington Post 

The FoolProof Foundation

FoolProof Teacher

FoolProof Solo

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to info@knowyourmoneyglobal.com.

 

Follow us on Twitter for more information about personal money management
https://twitter.com/Kn0wY0urM0ney

 

Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

Copyright © 2015 CWR Media – All Rights Reserved

Financial Literacy Month 2015: Stick Rigidly To Your Budget

Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

 

We’re Celebrating Financial Literacy Month

Know Your Money
Thursday – April 9, 2015

Financial Literacy Month 2015
Stick Rigidly To Your Budget
By Donell Edwards

Before getting into today’s post, I forgot to include an article that I recommend about converting to a cash budget in yesterday’s post.  It is entitled Does Switching To A Cash-Only Budget Make Sense?, written by Rebecca Lake for SmartAsset.com.  Ms. Lake is an experienced personal finance writer whose work has appeared on a number of popular finance sites including the Quickbooks/Intuit small business blog and Money Crashers.

Ms. Lake elaborates on some of the information in yesterday’s post, How To Create A Monthly Budget, and discusses, How Cash-Only Budgeting Works, The Benefits of Switching to Cash-Only, and Why It May Not Work for Everyone.  Click here to read the full article.

 

Businessman Clasping His Face in Horror

 

So after creating a budget, learning how the 50/20/30 Rule works and the advantages of a cash only budget, the big question is how to stick rigidly to the budget you have developed.  Instead of writing about this topic myself, there is an article on Kiplinger.com entitled, The Trouble With Budgets, written by Erin Burt, a Contributing Editor for the site, that offers some very insightful reasons why it is so difficult to stay on a budget, and some helpful and practical advise to overcome this problem.

Here are the eight reasons Ms. Burt provides for why it is difficult to stay on a budget:

  1. You have the wrong impression
  2. You’ve been trying to fit into someone else’s shoes
  3. You’re making this harder than it needs to be
  4. Your budget is too rigid
  5. You have no clear priorities
  6. You’ve set unrealistic targets
  7. You don’t have a safety net
  8. You quit too soon

Here is the link to the article:

http://www.kiplinger.com/article/saving/T007-C006-S001-the-trouble-with-budgets.html

 

Here is today’s step to financial wellness from Thirty Steps to Financial Wellness developed by Money Management International:

Step 9 – Do You Pass The Debt Test?

 

EVENTS AND RESOURCE LINKS:

Hosting A Financial Literacy Month Event

2015 National Savings Forum

Financial Literacy Month Articles from Huffington Post 

The FoolProof Foundation

FoolProof Teacher

FoolProof Solo

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to info@knowyourmoneyglobal.com.

 

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Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

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