Remember...You Can't Take Your Money With You When You Die

"You'll never see a U-Haul behind a hearse...I can't take it with me and neither can you. It's not how much you have but what you do with what you have."
 - Denzel Washington

Recently, I had a conversation with someone who reads my blogs. This person asked why I talked about money so much in my blogs. This person was under the impression that I was completely obsessed with money and he confirmed this when he told me, "Allen, you can't take your money with you when you die."

I completely agree with that statement. It is definitely true, you won't be able to take any wealth with you when you die. So why try, right? Perhaps it might be better for me to explain why I even write these blogs on money in the first place. Secondly, I want to explain why I truly feel that money is important. Finally, I want to explain what, I believe, you do take with you when you die.

Why do I write blogs on money?
I am not rich. I don't consider myself wealthy, either. However, I do consider myself blessed. God has given me the strength to learn quickly, apply what I learn, be brave, work hard, persevere, believe and achieve. Although I have not yet accomplished all of my goals in life, I have accomplished most of them. Although I am not financially independent yet, I have made great strives to get there. Over the last three years I have read books, watched videos, attended conferences and was mentored by others about money, finance, leadership, management, investments, etc. I have accumulated (and am still accumulating) an abundant amount of knowledge about many topics - money being one of them. I write blogs on money to share information and knowledge to those that might be struggling personally. I write about money because I know there are many people around me, people in my family, close friends that do struggle financially. I write about money to help people. I write about money to teach people how they can change their situation. I write about money to share my experiences with others. I write about money because I care about you. I don't want to live in a world where I achieve all my dreams and those that I love do not. 

Why is money important?
Unfortunately, we need money. We need money to provide for our family. We need money to pay rent, bills and our debt. We need money to attain the things that we really like. We need money almost every day. However, my philosophy on money is different. My intention is not to get rich. My intention is not to become the next top billionaire and buy a private jet. I believe money is important because it can lead to financial independence. If I am able to make proper investments, have a consistent positive cash flow and control my expenses, then I can achieve financial independence. To me, financial independence simply means that you do not have to depend on a paycheck or someone or something else to have money in your pocket. Instead of working for money, I would rather have money working for me. The only reason I want to achieve financial freedom is to have the ability to design my lifestyle. What would you do with your time, with your life, if you never had to worry about money? What would you do with your life if your investments took care of you? If I achieve financial independence by having enough passive income, I would spend my days helping people, spending time with my loved ones and trying to make a difference in the lives of others. I would wake up on Monday morning ready to go take care of my niece's kids so that she can take care of her errands. On Tuesday, I would go to an orphanage and spend time volunteering. You get the point. To me, money is a way to get to that ultimate goal.

What do we take with us when we die?
Nothing. Nothing tangible, that is. We can't take our money with us. We can't take our wedding rings with us. We can't take anything. Yet, we have been given life. Life is not a video game where we have 5 lives to live and then we can press the 'restart' button. Every minute is precious. Every moment counts. My goal is not to get rich. My goal is not to try to make a fortune so I can take it with me. My goal is to touch as many lives as possible while I'm alive. I can't take my pride, my glory, my accomplishments with me when I die either. I can, however, leave many things behind for others to have - from smiles, to money, to knowledge and assets. I'm not worried about what I'll be taking with me when I die. God will take care of that. I'm concerned with what I will leave behind. 

My intention was not to try to defend myself in this blog. My sole purpose for writing this piece was simply to give you an idea of what my true goals in life are. It's all embedded with a purpose. What is your purpose in life? Have you thought about it? Share. Comment. Have a great three day weekend. 

Don't forget to share this blog so you can encourage others: family, co-workers, friends. Give them something to get motivated! You never know what they might be going through. A few words of encouragement can go a long way.

How To Turn Your Cash Flow From Negative To Positive

"Discipline is doing what you know needs to be done, even though you don't want to."
- Unknown

Yesterday, I began to tell my story (Read How I Survived With $11 In My Pocket). Let me pick up where I left off...

So I finally got a job and things started to look a lot better. However, if you remember the story, I was still deep in debt, I received a lawsuit, shortly after a sheriff came to my office to let me know that my wages were going to be garnished, and I still had some bill collectors calling me consistently. 

It took me a few years to get out of this financial hole. This is not easy to do, but yet I was able to do it and I wanted to share the two main ways I was able to turn things around. At the time, I felt as though i was living paycheck to paycheck and most of my money went to paying bills, debt and other people with little or no money staying in my bank account. I had negative cash flow every single month for years. This is how I eventually got out. 

Sacrifice
I used to hate the word sacrifice. It pretty much means that you give up things that you like. Most people kind of want to change their situation, but they don't really want to do anything about it. Most people worry that they're in a financial hole but they don't want to give up anything to get out. I'm sorry to put it this way, but the most effective way to get out of a financial hole is by committing to sacrifices.

In order to prioritize my life and financial goals I gave up quite a few things that were not easy to give up. For five years I didn't own a television. This meant that I also didn't have cable. I had to be content with the car that I drove that was falling apart. I drove that car until (literally) the wheels fell off. For three years I didn't have a bed, just two mattresses on the floor. Beds are expensive and so are cars. If you add up the total amount you would spend on a TV and on monthly cable, it also begins to be expensive to have those luxuries. The phone I had was never new. In fact, I was trying to downgrade at one point but T-Mobile wouldn't let me. I bought clothes maybe once or twice a year and tried to take care of them so that they would last me for five more years. I also gave up going out so much so I can save a little on gas and dining out.

Discipline
As I mentioned before, none of this was easy. Most people feel that they need to reward themselves immediately after they receive a paycheck. Some people I know spend half of their paycheck the Friday they get paid. 

If you really think about it, I didn't have enough money left over (positive cash flow) to buy a new TV. Most people buy things with money they don't really have. I strategically put money aside every month for the bigger goals in life. For over four years I tracked my income and expenses on a spreadsheet (until I learned about mint.com three years ago.) Every month, I sat down for hours to look at where I needed to cut, what other sacrifices I needed to make and stuck to my plan. I also made sure that if I had money, I didn't spend it. the biggest discipline I attained was the ability not to spend money when I had it. I read tons of books and articles about managing expenses, investments, getting out of debt, how to save, how to develop better habits, how to become more disciplined, time management, all read to help me achieve my goals. I read (or listened to) a book every month. I read articles every single week. I forced myself to wake up earlier every morning although I convinced myself in college that I wasn't a morning person. I even gave up french fries for 9 months and eventually became vegetarian. People ask me why I became vegetarian and my simple answer is that I just wanted to see how long I could do it. It's now been five years. 

Throughout this experience, the money I made had nothing to do with me getting out of a hole (read Why How Much Money You Make Doesn't Matter). It was truly the discipline I developed and the sacrifices that I made that eventually helped me reach my goals. What was the end result? Now, I have a TV ( and I do have cable but I just bought it to watch the World Cup games - I'm about to cancel it) and a better car. However, I'm more proud of the fact that I have no loans, no credit cards, positive cash flow and I have been able to reward myself lately with trips to Hawaii, Cancun and Orlando. It also takes discipline to reward yourself at the end. 

Warren Buffet once said, "The most important thing to do if you find yourself in a hole is to stop digging." Can you stop digging?

Don't forget to share this blog so you can encourage others: family, co-workers, friends. Give them something to get motivated! You never know what they might be going through. A few words of encouragement can go a long way.

Interested In Improving Your Monthly Cash Flow? Follow These 5 Steps...

"Do not save what is left after spending, but spend what is left after saving."

 - Warren Buffet

Yesterday, I wrote about the concept of Cash Flow (read Why How Much Money You Make Doesn't Matter). For those of you that might not have had the time to read my blog and are in the dark of what Cash Flow is, let me quickly explain it. Cash Flow is what you have left over when you calculate what you earn (i.e. your income) against what you spend. Your monthly Cash Flow might be positive or negative depending if you make more money than what you spend or you spend more money than what you make on  a monthly basis. 

If you think that I'm going to give the top five secrets on how to make more money or how to reduce your expenses, you are wrong. Realistically, yes, there are only two ways to increase your Cash Flow: Either you have more money coming in or you have less money coming out. Instead of going over how to make more money or how to spend less, I decided to go over something a lot more valuable. 

Before I continue, I definitely wanted to let you know that in no way do I currently have a crazy amount of positive monthly Cash Flow. Although my monthly Cash Flow is consistently positive, it's important to note that for many years my monthly Cash Flow was consistently in the red. I share this with you because I hope to encourage you a bit more. I hope that you feel as though your situation is not unique and that things can turn around just like they did for me. Below are five things I wanted to share about how I was able to turn my monthly Cash Flow from negative to positive.

Enjoy The Hard Work
People are always looking for a quick way to make money. They prefer to hear the stories of someone who won the lottery and became rich instantly instead of the true stories of those who have worked hard with their blood, tears and sweat to become wealthy over a course of many, many years. Most successful people that I know never got rich immediately. It was their hard work that paid off. They happily worked more than 60 hours a week to move up the ladder in their company. They worked tirelessly day and night because they opened up their own restaurant and they had no time to sleep. In fact, I met a guy at a conference once who said he's working hard because he doesn't like to work. His goal was to retire by age 35. Hard work will pay off. Enjoy the ride. 

Get Educated
If this is the only blog you read, then you're in trouble. Most people think of education as a plan to go to a university and get a degree. However, you can almost learn anything through books and now that we have YouTube, you can practically learn how to do anything on YouTube. Be proactive. Learn about controlling your expenses. Learn about how to accomplish your goals. Learn about investing, how to play the guitar, how to sing, whatever it is, but learn. A few years ago I decided to read a book every month. That type of education was relatively cheap and it helped me learn more about improving my Cash Flow. 

Give More
You're probably thinking, "Wait a minute...if I give more, how will I be able to keep more of my cash flow?." It's the law of life. I'm just not talking about money, but anything that you might have that you can share or give to others. Give your time to someone in need, or give more time to spend with your children. Give your heart to more people and you will see how it will open up doors you never knew existed. Even during times of struggle, I tried to give what I could to others. I had no money to give to anyone at the time, but I gave away my knowledge by volunteering to teach kids how to play mariachi music. I also tutored kids and got shrimp tacos in return. Eventually, everything worked out for the best. Give. 

Make Better Decisions
Most people would rather not think about money and convince themselves that money isn't important. They base their decision on this philosophy and they find themselves struggling consistently to make ends meet. A spontaneous trip to Vegas means nothing to them although they might have spent $800 on the trip that they are now trying to work hard to make up for. Eating out every day and spending almost $900 a month on fast food doesn't matter, right? Take responsibility. Start now. Put down your phone as you read this blog and start making changes immediately. 

Believe
Nothing is impossible in this life. Most people get discouraged because they 'don't make enough money.' Others decide that it's impossible to become as wealthy as the people they see on TV. Your mentality is half the battle. If you think the worse will happen, then it will. If you don't believe in yourself, then why should anyone believe in you? If you truly want to change your situation around, whether it's a financial struggle or something else, you must believe that it is possible. Don't defeat yourself before you try. You'll be surprised how strong you are inside and how believing can come a long way.

This article might not have been what you expected, but I felt I would be doing you a disservice if I continued to give you tips that you wouldn't put into action. Do you really want to change things around or is it just a nice thought? As I mentioned before, half of the battle is setting your mind to it. The other half is really just doing something about it. 

Was this blog helpful? Please share your comments. 

Don't forget to share this blog so you can encourage others: family, co-workers, friends. Give them something to get motivated! You never know what they might be going through. A few words of encouragement can go a long way.

The Question Most People Struggle With When Dealing With Their Money

"People with goals succeed because they know where they're going."

 - Earl Nightangale

Every month I meet with family and friends to help them go over their finances and put systems in place so that they have a budget to stick with. Every month, I also receive a phone call, or a few phone calls, from someone who frantically wants me to help them with their finances. When I receive that phone call, that particular person feels as though they're the only one struggling with their money and that their situation is unique.

I have yet to encounter a situation that is unique or a situation I truly believe can not be improved. However, you might think that most of the time I spend going over people's finances, I spend creating budgets, reviewing bank statements or teaching them about money. Although this is true, most of my time, however, I spend helping each individual answer one single question. This one single question is the toughest question to answer and is why I truly believe some people are struggling with their money. Most people can't answer this question.

The question most people can't answer is this: What do you want to do with your money? 

Most people earn good money, but they have no clue what to do with it so they spend it. Month after month, people receive a paycheck and month after month that paycheck disappears. What is the most common response to this question? It's: "I want to pay off my debt." Interestingly enough, the most common answer I receive with people has to do with spending it on their bills and paying other companies, not spending it for themselves. 

I don't want to make it seem like I have the answers to everything in regards to finance, but my purpose with these blogs are to help. If you have trouble answering that one simple question, now is the time to really start thinking about it. The following tips are ways I have tried to help others answer this question.

Ideas are OK
One individual I met with spent almost 30 minutes thinking about this question to only give me an, "I don't know." I then asked her to just jot down ideas and just think of what she would like to do. She told me she thought she couldn't answer the question because she hasn't really set goals for herself. I told her that's OK. An idea is a great start. All goals start off as an idea or a dream. It can be something as simple as "go to a Dodgers game," to "I don't want to work for my company anymore," to "I want my  kids to go to college." Later, we'll talk about goal setting, but you have to start somewhere.

Short-Term Goals are OK
I feel as though some people ponder that question so much because they try to look at their future a lot more. However, if you have trouble thinking long-term, think short-term for now. What are things you want to buy or have your money do for you in the short-term? Some people might want to take their kids on a family vacation in the next year. Some people want to go back to school this fall. Some people might just want to buy a house or move out of their crummy apartment. Although, I do suggest thinking longer-term at one point in your life, start off thinking about the next one month to three years. 

Get Educated

Some people can actually save well and have money saved up. Some people might be planning on saving money but might still not know what to do with that money. Eventually, these folks tap into this pool of money because they have no other choice. For those of you that might be dealing with this situation, I recommend doing some research. Just google, "what to do with money I have saved." For those that are thinking about investments, look into real estate investments or setting up an investment portfolio. Most people don't know how to do this because they were never taught these things. However, if you start asking the right questions, you'll start getting the right answers.

Spend this weekend trying to answer the question: What do you want to do with  your money? Discuss it with your spouse, write down some ideas and you'll see how things will begin to improve very quickly. Was this blog helpful? Share. 

Don't forget to share this blog so you can encourage others: family, co-workers, friends. Give them something to get motivated! You never know what they might be going through. A few words of encouragement can go a long way.

Do I Need A Budget For Everything? Even If I Just Want To Buy A Pen?

"Don't spend more money than you've got. Don't spend money before you've got it."

 - Lillian Vernon

A few months ago I was meeting with one of my 'clients' to go over how they did against their budget for the previous month and to create a budget for the following month. As we were creating their budget for the month of June, I asked the question, "Are there any birthdays coming up in June that I should be aware of?" The couple looked at me with a question mark on their face. "If so," I continued, "then it needs to be in your budget." The couple said that they had three birthday parties that month so we added a budget for those birthday presents. 

"Wait a minute," the wife asked, "so we should also have a budget for Father's Day presents?" I nodded, of course. "Is there something we shouldn't budget for or do we have to put a price on everything?" the wife asked. The husband finally chimed in, and jokingly said, "Yeah, should I create a budget even if I just want to buy a pen?"

When I first began to create a budget for myself, I realized that I was actually pretty good with sticking to most of my budgets. However, time to time I did go over on something. After carefully analyzing my spending habits, I then realized my problem. My problem wasn't that I was overspending on certain areas I budgeted for, my problem was that I was spending on areas I never budgeted for. These items were not emergencies, if that's what you're thinking (we'll talk about emergencies at a later date). These were items I did not plan to buy, that I could have easily planned a budget for. Below is a list of some budgets you might want to create to help you better plan your budget.

Birthday Parties & Special Occasions
If you're like me and you have a big family, birthday parties happen every month (and depending on the month, they might happen every week). Set a budget for birthday presents, birthday parties you might be throwing for your kids, anniversaries, and for other Holidays that require you to spend: Thanksgiving, Christmas, Valentine's Day. Set a limit for yourself so that you don't overspend and then regret it. For example, for birthdays presents, you might set a limit to not spend more than $20 per present. After you set your budget for the month, try sticking with it.

Trips & Vacations
Before committing to a trip or a vacation, try to set a budget first. You should think about gas or other type of transportation (i.e. rental cars, plane tickets, etc.), the hotel stay, food, entertainment (i.e. theme parks, zoos, etc.) and the shopping you want to do. If you like to take souvenirs, don't forget to add that to the budget. Try to avoid the spontaneous trips to the casinos or Las Vegas. Instead, make plans and make a budget. 

Big Purchases
When I moved to my old apartment, the goal was to make it look sexy. However, it takes quite a bit of money to make it look sexy. There were also some things we needed for the apartment such as an iron, a vacuum and a blender. I could have bought all those three items during the first month of us moving in. However, I decided to time my budget. The first month, I set a budget to buy the iron. The second month, I bought the vacuum and the third month we purchased the blender. Afterwards, I began to set a monthly budget to add to the sexyness of the apartment. However, it took time to purchase these items and every month there was a budget allocated for those items we wanted to purchase.

Remember, the goal is not to break your head trying to budget for the cost of a pen. The goal is to plan a lot better. Plan those dates with your wife. Plan for those birthday parties. Plan to buy that laptop that you need. Plan, plan, plan...and set a budget as you go. 

Can you think of any other things you should set a budget for?

Don't forget to share this blog so you can encourage others: family, co-workers, friends. Give them something to get motivated! You never know what they might be going through. A few words of encouragement can go a long way.

5 Ways To Create A Budget For Yourself - Anyone Can Do It!

"A budget is telling your money where to go instead of wondering where it went."

 - Dave Ramsey

A  friend of mine was sharing with me how much he makes a year but was angry with a realization he had the other day. "Allen," he says, "I just found out that I make $45,000 a year, but that I only have $238.53 in my bank account. Why don't I have $45,000 in my pocket? Or at least half of that!"

When I was in college, I too had this realization. I told my roomate that I felt like I was just a middle-man for companies. I get paid only to hold that money for a few days before I give it to Verizon, the electric company, and other companies that I have to pay on a monthly basis. Although, I won't go over how to stop being a 'middle-man' during today's blog (or getting out of the Rat Race as Robert Kiyosaki would say), I do know that budgeting is the first step to taking control of your personal finances.

The following 5 steps will help you budget a bit better. 

1. Start by knowing how much money you make a month, on average
For some of us, our monthly income is the same every month, but this is not true for everyone. Start by putting down how much money you make a month and if it's not a number that is constant, then just use an average. 

2. Use basic categories to track your expenses
Before you start to jot down all the expenses you have on a monthly basis, first start off with the basics. Below is a list that I use when creating my basic categories:

• Auto & Transportation
• Bills & Utilities
• Education
• Entertainment
• Food & Dining
• Gifts & Donations
• Health & Fitness
• Home
• Personal Care
• Shopping
• Travel

3. Break down the basic categories into subcategories

The more detailed you are with your budget, the more you'll understand where your money goes and where you want to allocate your money. From the basic categories that you created, create subcategories to track each transaction. Here's an example of the subcategories that I use:

• Auto & Transportation
• Gas & Fuel
• Auto Insurance
• Car Wash
• Maintenance
• Bills & Utilities
• Electric Bill
• Phone Bill
• Water
• Internet
• Education
• Student Loans
• Books
• Entertainment
• Movie Theaters
• Music (Yes, I still pay for music)
• Concerts & Shows
• Food & Dining
• Fast Food
• Restaurants
• Groceries
• Gifts & Donations
• Presents
• Donations
• Health & Fitness
• Gym
• Doctor
• Dentist
• Sports Team
• Home
• Rent
• Decorations
• Home Improvements
• Personal Care
• Hair Cut
• Spa & Massages
• Shopping
• Clothes
• Desired purchases (tablet, laptop, etc.)
• Travel
• Timeshare
• Hotel
• Food for Travel

4. Look first at where your money went

Before you begin putting targeted amounts next to each category, first find out what your spending habits look like. Most bills and payments that we make are the same, for the most part, so those can stay constant. However, you do want to find out how much you are spending on clothes, a hair cut, fast food and other expenses that might change every month. You might want to look at the last three months and see how much you were spending on each category. Then, you should continue into the final step. 

5. Decide where you want your money to go

If you truly did this exercise, you might already have gotten depressed before you got to this final step. Most people realize later in life that they are spending more money than what they make. This is the main reason why you might feel that you're struggling to make ends meet every month or every week. This is the same reason why you feel like you never have money. You're probably spending more than what you're true means are. If this is the case (and even if it isn't), you want to place controls and decide how you want to spend your hard earned money. 

As I mentioned in my last blog, this will not happen overnight. Take the time and have the discipline to do this consistently for at least a year and you will start to see positive changes. It's not how much money we make but how much money we actually get to keep. 

Was this blog helpful? Comment. 

Don't forget to share this blog so you can encourage others: family, co-workers, friends. Give them something to get motivated! You never know what they might be going through. A few words of encouragement can go a long way.

5 Easy Steps To Follow...For Those Struggling With Finances

"Too many people spend money they haven't earned to buy things they don't need, to impress people they don't like."

 - Will Smith

Some people call me the accidental Financial Planner. Well, actually, no one calls me that but I thought it was a catchy name for my informal title. Since last November, I have gladly spent numerous hours helping people trying to get their finances together. My goal has always been to help people control their expenses so they can have enough money to not worry about money. (Don't worry - I won't be disclosing any names!)

Interestingly enough, I found myself giving the same tips to different people over and over again. These tips are essentially very basic and simple and will make a huge difference with the way you handle your money. If you properly follow these 5 steps, you will learn a lot about they way you handle your money, where your money actually goes and what changes you need to make to ensure financial health for yourself and  your family. 

1. Track Your Expenses
The first question I typically ask someone when I meet with them is, "what do you spend your money on?" The most common response I get from parents is: "on the kids." However, after fully reviewing all expenditures, it always turns out that perhaps less than 15% of the total expenses are spent on the kids. Other people can't remember or don't even know how much they spent on their phone bill or that they had a gym membership. It is important for everyone to track their expenses. There are many free tools out there that will actually do this for you. Most banks have online banking but a great tool for those that might have multiple accounts, and my favorite tool, is mint.com.

2. Use Less Cash
Cash is bad for a few reasons. One reason: if you have cash, you will spend it. If you don't have cash, you won't have something to spend. Another reason cash is bad: most people who heavily use cash to make transactions, payments or to buy things don't track their expenses. Many people have the habit of cashing their paychecks or going to the ATM frequently to take out cash. Unless you are writing down why you took out $100 on July 2nd of 2014, you will never know where your money went. Use your debit card to make transactions instead so that your transaction can be tracked and you can truly find out what you're spending your money on. 

3. Tag Your Expenses
Most people are lazy. They want a program or their online banking system to track perfectly what they spent when they went to Target. I have yet to find a system that will read your mind. It's impossible for a program to know that on August 2nd, you went to Target to buy groceries and that on August 8th you went to Target to buy clothes. Most people don't want to tag the expenses appropriately. Spend two to three days a week looking at your account and making the appropriate adjustments to your transactions. 

4. Review Your Expenses
Usually, after I meet with someone for the first time to go over their finances, the individual is excited about making changes to their financial habits. They leave with a mint.com account and with some financial knowledge about where their money went. However, when we meet a month later, I ask the question, "how many times did you look at your mint.com account?" The typical answer is one to three times. If you're only looking at your bank statements or checking your budget one to three times a month, you are doomed to repeat the same financial mistakes. It's of no value if you have online banking or a program that tracks for your expenses if you're never looking at your numbers. Try looking at the numbers at least once weekly, and then get in the habit of looking at them twice a week. I personally look at my mint.com account three times a week. 

5. Create a Budget
Most people are scared of the word "budget". When I told a certain individual that we needed to get her on a budget, her response was, "A budget? A budget will just tell me that I can't spend my money!" This is actually not true. A budget is a way for your to plan how you want to spend  your money. So, if you deemed it valuable to spend your money on video games every month, then you can definitely do that as long as you create a budget and a plan to execute that budget. I personally love going to the movies so I have a budget every month allotted to going to the movies. A budget really helps you decide where you want to put your money. 

Taking control of your finances will not happen over night. This will take time and discipline. Many of us were never taught about budgets, expenses and money. I hope to educate those that might be struggling taking control of their money. Am I an expert? Absolutely not. However, those of you that know me well, also know that at one point, I was also living pay check to pay check, getting deeper in debt, having collections calling me and a law suit from a credit card company. If you're in a hole - trust me - you can get out. Anything is possible. 

Don't forget to share this blog so you can encourage others: family, co-workers, friends. Give them something to get motivated! You never know what they might be going through. A few words of encouragement can go a long way.

Before you spend your STATE or FEDERAL REFUND CHECK, read this!

This morning I received an email from Walmart with the subject, "Tax Refund Online Specials Are Here". If I would have received that email a few years back I would have definitely opened it. Companies know that we are waiting for our state and federal refund check to spend it and they want us to spend it on them.

Some years ago, I felt that I was living paycheck to paycheck. Every month I felt as though I was the middleman for utility companies, credit card companies and my landlord. I became proactive and decided to track my spending. After two years of diligently tracking my expenses, I realized that now I was living paycheck to paycheck while spending certain evenings trying to calculate where my money went. In other words, I was a middleman trying to be an accountant. Then I realized something: not only was I living paycheck to paycheck, I was living refund check to refund check. Any given year would have looked like this:

Spring: Refund check time! Party time! So many choices. What should I buy first?

Summer: Shoot! Where did my refund check go? Well at least I still have a job.

Fall: How did I get so broke? Christmas is around the corner and now I won't have any money to buy presents.

Winter: Crap! Why did I buy all those presents? Now I'm in debt. How am I going to make it through the year? I can't wait to do my taxes. 

This became a vicious cycle that wouldn't stop for years. Sometimes I would even buy things before I received my refund check simply because I knew the check would be in the mail sometime soon. It was time to put a stop to it all. No more living refund check to refund check. 

This tax season, instead of spending your state or federal refund check in minutes, here are some suggestions on what you should do instead:

Think before you spend. Think before you act. Answer these following questions: Do you REALLY need to buy this? Do you REALLY need to spend your money on that thing NOW? Could your money be used for something better? If you don't really need the item you are thinking about purchasing, don't buy anything. If you feel as though your money could be utilized elsewhere, then don't buy anything. You might be better off holding on to the money instead.

Start a savings account. If you already have a savings account, put the money there. Give your self some time to really understand how the money should be spent. Saving your money is a great way to begin building your wealth instead of living month to month. 

Create financial goals and financial priorities. Be careful. Some people will automatically want to pay off all of their debt only to find themselves getting more loans or getting another credit card later in the year. Think about cash flow - the money you have or need in your hands. List out your financial priorities and your financial obligations. Begin calculating your expenses or use an app like Mint to do it for you.

Think about this check as new beginnings. This is a fresh start for you to make things right this year. Make better decisions financially and you will soon stop living paycheck to paycheck - or refund check to refund check. Any questions? Don't hesitate to ask.