WARNING- Read this before You do Your Taxes

I had to get this out as quickly as possible, to all my friends, clients, faithful readers and those that just stumbled upon this article: Say NO to "Refund Anticipation Loans (RAL)" this tax season and every tax season for the rest of your life, they are a rip-offs!

What is a "RAL"? A "Refund Anticipation Loan" is when your tax preparer offers you quick access to your Tax Refund by "loaning" you the money. Their sales pitch is "why wait when you can get your money now?" That is the sort of thinking that has gotten many consumers into financial trouble! What they don't tell you is that the average tax refund only takes about 10 days to receive.

Lets look at the pros and cons of a RAL for the consumer:

Pro's:

1. You get almost immediate access to the amount of your tax refund (yes there is only 1 pro)
   

Con's:

1. High Fee's - An average of $103 was paid in RAL fee's per consumer
   
2. Extremely High Interest - If you calculate the Annual Percentage Rate (APR) the average interest rate paid on RAL's ranged from 85%-500%! http://bit.ly/26WA7I
   
3. Only Solve Short term financial problems - Sure it feels good to get money in your hand quickly but if you have not gotten down to the core of you financial issues (over spending, no savings, ect...) it will not matter in the long run.

Here's 2 tips on how to avoid the rip-off RAL's and still get your tax refund money quickly:

1. Take advantage of technology: File Your Tax Returns Electronically, instead of using snail mail.
2. Set up Direct Deposit: You can have both your Federal and State refund direct deposited into your bank account.

By avoiding RAL's and doing the 2 tips above the average tax payer only waited an average of 10 days to receive there money. So this year keep more of your hard earned money by saying NO to Refund Anticipation Loan's.

Carlos Frank
Your Personal Financial Coach
Website: www.nextmoneystep.com
Blog: www.nextmoneystep.blogspot.com

For a free copy of Carlos' newest EBook, "101 Ways to Save Money" CLICK HERE and request yours today.

Do This, and Your Kids will be Financially Fit!

Why do 70% of Americans live paycheck to paycheck? Why do most adults grow up with no money in savings but they have all the electronic toys, shoes and cars that one could want?

To answer those 2 questions, I have to ask one more (I'll even give the answer!) :
When you were a kid, what was the #1 reason you got money for?

Answer: To Spend!

Birthday money = Spend! Christmas money = Spend! Allowance= Spend! No wonder almost three quarters of the population could not survive financially if they missed just one paycheck! It's been instilled in our heads since childhood that the only reason for money is to spend with no thoughts of giving or saving! So here's a tip for parents, teachers and childcare providers to help raise financially fit children!

Whenever your child receives some money sit down with them and show them what they should do with their money. And then tell them why!

When I coach parents one on one or at seminars I show them that there are only 3 basic things we should do with money:

1. Give - Because it's not all about you. This keeps you from being selfish.
2. Save- Because saving is the foundation for wealth building. And you just never know!
   
3. Spend- Let's be real, spending is fun but you should do it wisely! Just spend after you give and save!
   

And you do them in that order! By doing this you will begin to ingrain in your child's mind that they don't just get money to spend, spend, spend! They will be tremendous givers and savers. You will have financially fit children entering the real world of financial responsibility!

What are some techniques you use to teach your kids the importance of being good stewards with their money?

Carlos Frank
Your Personal Financial Coach
www.nextmoneystep.com
www.nextmoneystep.blogspot.com

I've got a problem with the Mortgage Modifications

I've been reading a lot about these mortgage modifications and how they are supposed to be helping keep Americans from losing their homes to forclosure. I've truly believed that a majority of the people who are seeking these modifications had no business getting these loans to begin with.

Anyways......now I have the numbers to back up the issues I had with mortgage modifications:

"a recent report issued by the U.S. Comptroller of the Currency (OCC) found that 53% of borrowers who had their mortgages modified in the first half of 2008 were already at least two months" (CNNFN.COM)

Why, you ask? Why are half of the loans that are being modified going right back into distress and foreclosue? Because all that the government and the banking institutions are doing is dealing with the product and not the real issue at hand which I believe is the actual consumer and their spending habits. The history of consumer debt and paycheck to paycheck living proves that most people are always going to live beyond their means!

To fix any issue you have to go to the root of the problem! I believe the roots to this problem goes all the way down to the the lack of financial literacy being taught in our school systems. Ignorance is very dangerous. You show me a person who is ignorant of a certain fact and I'll show you a person that I can manipulate!

We have to teach financial literacy to our children, teens and college students! And you have to take charge and be proactive as a consumer and learn as much as you can! Go buy a book, take a class! It's never to late to learn! Modifications are more like bandages on a scab that keeps on getting picked!

What are your thoughts on this, do you really think modifications are the answer?

Carlos Frank
Your Personal Financial Coach
http://www.nextmoneystep.com

Get what you Need without Spending Money!

What our Great-Great Grandparents did to get what they needed is coming back in style!


People are looking for ways to save money like never before. From gas to their next house, I've never seen more people looking for bargains!

Well I (Re)discovered the oldest way in history to get products and services that you need.

BARTER!

The dictionary defines the word "barter" this way - "To trade goods or services without the exchange of money."

I am currently working with a client who offered to do a couple of hours of research for my new book, in exchange for Personal Financial Coaching and I agreed. By doing so I am saving hours of research on my side and at the same time she is getting the financial coaching she is needing.

So the bottom line is you don't always need money to get the things that you need. So think about what service or product you can provide then find someone who has a product or service that you need and begin bartering today!

Have you ever "Bartered"? I'd love to hear your story!

Carlos Frank
Personal Financial Coach
www.nextmoneystep.com

Do this to protect your money when buying from the internet!

I recently found a program that I wanted to purchase off of the internet but I was not familiar with the company that was selling it. The only way that I could purchase it was by my Visa Debit card. So I was a little skeptical but I wanted the program.

I've coached several people who have had their account info and identity stolen by making purchases over the internet. My wife and I was also a victim of this about 5 years ago.

Here is a way that I've discovered that pretty much is a 100% way to protect your bank account from being drained by a online thief!

When you find something you want on the internet and your not 100% comfortable about the security of the online sale go out and get a Visa Gift Card to make the purchase!

Here are the benefits of doing so:

1. You can use the card to make purchases on the internet
2. Even if someone steals the info all they have access to is the amount on the card not all the money in your account
3. Some banks offer this for free so it can cost you $0.00 to do this
4. If something does happen Visa offers a free service that will help you track down your money!
   

Here's what you do:

1. Find out the total cost of the purchase (include shipping and handling and taxes)
2. Go out and get a Visa Gift card for that amount. I usually just round to the nearest dollar.
3. Register your gift card online. You will have to put your name and mailing address so you can make the purchase online. (So some of your Identity is still out there, but at least your money isn't)
   
4. Make the purchase!

If your unsure about an internet purchase try this method out and tell me how it goes!

Carlos Frank
Personal Financial Coach
www.nextmoneystep.com

2 Simple Laws of Coupons and Sales

I just purchased something online and used a promo code/coupon to save some money. That made me think about several clients that have told me that they use coupons and take advantage of sales but still end up overspending.

Think about it. Have you ever walked into a grocery store with good intentions to sticking to your grocery list (you are using a grocery list, right?) and then end up with $20-$100 more in groceries than you intended? Then you justified this by saying well I just could not pass up a sale like this! Hmmmmm.....

If you find yourself doing this here are the 2 Simple Laws of using Coupons and Sales (Plus a 3rd bonus Law) -

1. Only use coupons on items that you have already decided to buy!
2. Only take advantage of sales on items that you've already decided to buy!
3. Read Law 1 & 2 over again!

Stores create sales and coupons for one purpose only, and unfortunately it is not their #1 goal to save you money, no matter what they say! Sales and coupons are made to do one thing! To make you want to buy, buy and buy!

So the next time you see a sale or coupon. Stop. Breathe. And ask yourself, "is this something that I already wanted to buy?" If so......then what are you waiting for? Throw it in the basket. If not then just keep on walking and keep your money!

Carlos Frank
Personal Financial Coach
www.nextmoneystep.com

Are you an Emotional Spender?

Have you ever noticed how easy it is to give someone else advice for a situation that they are going thru?

Evey wonder why it's so much easier to do this for someone else than for yourself?

One word, "EMOTIONAL"!

The worst time you can ever make a financial decision is when your emotional. And that doesn't just mean when your angry or sad.

Some of the worst financial decisions I've ever made was when I was extremely happy and excited! Have you ever gotten a large sum of money and then the next thing you know your money is gone and you don't even know where it went? Emotional Spending!

Well you had a case of "Emotional Spending". So the next time you catch yourself getting ready to do this, you can do 2 things to protect yourself from making a bad decision:

1. Seek some advice from a friend or coach like myself.
2. Step back, pause, and look at your situation like you were someone else and then ask your self what advice would I give someone else who was in this situation?
3. Wait 7 days to make the purchase. This will give you time to re inventory and see if you still really want to make that purchase.

Remember don't be an Emotional Spender!

Carlos Frank
Personal Financial Coach
Website: www.nextmoneystep.com

3 things you must know before you invest in anything!

I've had several clients and students tell me horror stories about things they've invested in and lost all of their money! Get rich schemes are at an all time high. There are people and systems out there set up to take your money!

Here are 3 questions that you must be able to answer before even considering giving your time and money into any financial investment:

1. How does your money go into the investment?
2. When your money gets in how and where does it make more money, increase in value, appreciate?
3. How do you get your money out of the investment?

The above three questions are the building blocks and will stir up other questions that you should ask before you invest any time or money. There is safety in sound advice, so always seek the help of a competent professional investment consultant before making your decision.

What kind of money schemes have you heard about or fallen prey to in the past?

What's better Security or Freedom?

Quick question for you?

Are you seeking "Financial Security" or "Financial Freedom"?

If someone would guarantee you, shelter, clothing, lights, water, a bed to sleep in and 3 meals a day would you be content? I call this financial security. Or "just getting by" mentality. Just enough. Paycheck to Paycheck living. Do you know what the most secure communities are on earth?

Answer: Prison!

Think about it! Your guaranteed: shelter, clothing, lights, water, a bed and 3 square meals a day! Prisoners are the most secure people in the world. But do they have "Freedom"? NO!
Prior to working with me many of my clients feel like financial prisoners.

I propose that you should be seeking "Financial Freedom"! That means renewing your mind about money, being free of keeping up with "The Jones's", becoming a giver, breaking free from debt and creating multiple streams of income!

So are you looking for "Financial Security" or Financial Freedom"?

Carlos Frank
Personal Financial Coach
Website: www.nextmoneystep.com

Did you finish yet?

One of the challenges I've had thru out my whole life is starting something and not completing it. I've found that if I start a lot of projects without completing them I get frustrated with myself. With so much left undone I didn't know where to start or which one to do first. So now I've challenged myself to finish a task before I begin the next one.

Have you done your spending plan? How about your savings plan? Your Debt snowball plan? How about call your insurance agent to lower your insurance costs?

Ask your self the following question then answer it:

What is the one thing that I've been putting off concerning my personal finances, that if I follow thru with it would have the most impact on my life?

Carlos Frank
Personal Financial Coach
Website: www.nextmoneystep.com

Get your free T-shirt

I remember back in college when I was walking to my next class, there was this guy and girl sitting outside the building. There was a bunch of people around them talking and they we're walking away with free t-shirts and pens! I wanted one to! So I stepped up to the line and asked "hey, how do I get one of those shirts?" I was told all I had to do was sign up to get a credit card and I'd get a shirt and pen for free and it would only take a couple of minutes!!!!!! Wahooooooo!!!!!

So 10 days later I'm wearing the free t-shirt (I've already lost the pen) and in the mail comes my credit card with a $500 limit! Wahoooooo.....dinner's on me! Four years later (I don't know where the shirt is) but I'm graduating and I have $1,200 of credit card debt! Wow talk about starting off on the wrong foot!

I've heard of some crazy things that these credit card companies give away to get you to sign up. What are somethings you've heard of?

How do you raise quick cash?

My wife and I are planning to have a garage sale this month to raise some quick cash for somethings that we need to get! That got me to thinking about how creative and powerful our mind is when we use it. I believe that credit cards, payday loan places and other easy credit companies rob us of our creativity! Think about it. It doesn't take a very creative person to pull out their credit card and make an impulse purchase.

What are some creative things you've done to raise some quick "debt free" cash?

You define prosperity.

What's your definition of prosperity?

In a world where your level of prosperity is judged by the car you drive, the neighborhood you live in and the clothes you wear. Most define prosperity by the stuff you have or don't have! You know...if you pull up to the class reunion with a shiny new car most people will say.."uhhhhh there doing good!". But little do they know the turmoil that going on inside! The mounting debt, pressure at work, failing marriage and everything else that life throws at you!

My tag line is "Live Debt Free & Prosperous"! I believe that I should define the word prosperous, as I see it.

When I use the confession (or some say affirmation), "I'm debt free and prosperous", I mean the following:

1. I have a loving wife that loves me!
2. I have awesome kids that love me!
3. I have great health. (My wife still wants me to visit the doctor more but hey, my life insurance company said I was a "super preferred" client!)
4. I have a group of friends that I can call on and trust.
5. My spiritual walk is ever improving thru prayer and reading the Word.
6. Oh yeah, money works for me, I don't work for money!
7. I'm free from stuff and money!

To limit prosperity to just money is incorrect. True prosperity does not only involve money it involves every area of your life. Am I perfect in the above areas I listed? Far from it, but now because I have my priorities straight and money is no longer number 1, I have found true prosperity!

What's your definition of prosperity?

Carlos Frank
Personal Financial Coach
http://www.nextmoneystep.com/

100 Billion Burgers Sold!

Many business owners ask me, "Carlos how can we increase our revenue??" I answer their question with a question, "How many people are you helping?"

My observation is that the wealthiest people on this Earth are the people and companies who help the most people! Think about how many people McDonald's, Wal-Mart and Microsoft help everyday then look at their revenues. McDonald's claims to have served over 100 billion burgers since it opened in 1940. It estimates that it serves over 47 million people a day! Millions of people shop at Wal-Mart every day! Millions of people use a form of Microsoft Windows every day! They all help millions of people acquire something! Whether it be a hamburger or a quicker way to process a document! In return of helping millions of people, they are some of the wealthiest most admired companies in the world!

So, how many people are you helping? I believe that all of us contain knowledge that someone else is looking for! In other words someone or many people are looking for you! There's wisdom inside of you........there's a book inside of you! You don't have to be McDonald's and serve millions everyday! But you could eventually! So how many people are you going to help?

Carlos Frank
Personal Financial Coach
Website: www.nextmoneystep.com

Your not thinking, are you?

Let me ask you a question? Do you ever take time to think?

I'm talking about the type of thinking you do when you sit down in a quite place and concentrate on one matter or issue at hand and how to solve it or improve on it. Many of us desire multiple streams of income, but have you actually taken time to think of ways to make it a reality? Remember in school we used to call it "Brainstorming"

I take my clients and my students thru an exercise that gets them to come up with ideas to create more income and save more money. Prior to the exercise they have very few ideas if any but in less than 5 minutes they come up with dozens!

Here's how to do it:

1. Have a pen and paper ready (a goal in your head is only a fantasy until you get it on paper)
2. Pick a quite place where you will not be disturbed for 5 minutes
3. Clear your mind and prepare to focus on only one thing
4. Now ask your self the following question: What can I do to increase my income and create multiple streams of income in my life? Then LISTEN!
5. Write down everything that comes to your head! Do not leave anything out. Nothing is to crazy (ever heard of the Chia Pet?) and all things are possible. Now is not the time to figure out the "how will this come to pass". Right now is the time to write it down!
6. Take immediate action on the idea that gives you the most energy!

So what did you come up with?

Live Debt Free & Prosperous,

Carlos Frank - Financial Coach

website: www.nextmoneystep.com

Who's taking your Money?

The system is set up to not only keep you in debt but to separate you from the money that worked so hard for. Advertisers are literally banking on our the populations got to have it now mentality. Billboards, radio, tv ads, the internet all set up to take your money! Why else would companies pay $3,000,000 ($3 Million) to advertise for 30 seconds during the Super Bowl! It's all about "branding" there product or service in your head so that you will spend, spend, spend!We live in a got to have it now, no matter what the costs society:

• Don't hold up the line"Life takes Visa"
• Lose 10 pounds in 1 day
• Make $10,000 a month in less than a month
• Get rich on the stock market by "Day Trading"
• Act now! While there's still time!
• .....only 90 second's left to take advantage of this great buy! (Hold on I just saw that same commercial 10 minutes ago)

Here's a list 25 of things that are set up to tear you away from your money!

1. Income Tax (mainly from Government overspending)
   
2. Sales Tax
3. Taxes on everything!
   
4. Bank Fee's
5. Overdraft fees
6. Non- sufficient fund fees
7. Interest on Debt
8. Over limit fee's on credit cards
9. Clearance sales
10. get rich quick schemes,
11. wire fee's
12. check cashing fees
13. toll roads
14. Casino's
15. Gas Tax
16. Capital Gains Tax
17. Estate Tax
18. Late fee's
19. family and friends
20. rent to own places
21. pay day loans
22. prepayment penalties
23. drug dealers (legal and illegal)
24. hidden fees
25. applications fees

This list can go on forever! Remember though at the end of the day, you have to decide what to do with your money! Advertisers just pay big bucks to make suggestions! If you don't have a plan for your money they definitely do!

Live Debt Free & Prosperous,

Carlos Frank
Financial Coach
Website: http://www.nextmoneystep.com/
Picasa Web Album: http://picasaweb.google.com/nextmoneystep/NextMoneyStep#

You might be a slave and might not even know it!

The rich ruleth over the poor and the borrower is servant to the lender!
Proverbs 22:7

Very strong words and no matter what your belief, very true if you think about it! Let's see what happens when you sign up for a mortgage, car loan, line of credit, credit card, charge card, HELOC, Prime Equity Line, Personal loan, Pay day loan...........

1. The lender tells you what date you must pay them by (due date)
   
2. The lender tells you how much to pay them (minimum payment)
   
3. The lender tells you how you can pay them
   
4. The lender tells you for how long you will have to pay them (Loan term)
   
5. The lender tells you how much interest you will pay back (APR)
   
6. The lender tells you that if you don't pay there will be consequences (repo, foreclosure)
   
7. The lender has the right to review your credit pretty much whenever they want
8. The lender has the right to make adjustments to the "debt product" you have (just read the fine print. Ever had a credit card interest go up?)
9. The lender can even punish you for paying your loan off early! (Prepayment Penalty)
10. The lender will sue you if you don't repay

Sounds like slavery to me! That's why I call getting into debt "Volunteer Slavery!" This is evidenced even more with the current bailout talks! Debt is a banks and this countries #1 product. They say we must have this bailout so banks will lend money out again! So they are saying that if banks aren't freed up to get people like you and me, businesses and even governments in more debt that the economy will crash! WOW.......think about it!

Harritet Tubman said: “I freed a thousand slaves I could have freed a thousand more if only they knew they were slaves.”

Do you know? Don't you think it's time to live Debt Free & Prosperous?

Carlos Frank
Financial Coach
Email: carlos@nextmoneystep.com
Website: www.nextmoneystep.com

I Support a Bailout Plan

I can't watch the news or listen to the radio for more than 5 minutes without hearing about the current state of our economy! Gas prices are high, real estate is slow, banks are closing, foreclosures and this $700 Billion bailout that people either strongly appose or support.

My opinion: I strongly support a bailout!
But I'm not talking about $700 Billion Government Bailout, I'm talking about each household in America putting together their own personal economic bailout plan together and bail themselves out of bad personal financial decision making! Here's the thing, no matter what the government decides to do, government bailout or no government bailout, at the end of the day you still have to control your own personal economy! YOUR HOUSEHOLD BUDGET!

Here's a Personal Economic Bailout Plan:

Money Step 1: Get your financial house in order
Money Step 2: Save $1000 for an Emergency Fund
Money Step 3: Payoff all your consumer debt
Money Step 4: Build Saving to 3-6 months of living expenses
Money Step 5: Save 15% towards Retirement
Money Step 6: Save for College
Money Step 7: Payoff your Mortgage


So my question to you is: These type of economic cycles come around about every 10 years, what are you going to be doing different financially when/if this happens again?

Live Debt Free & Prosperous!