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.

Spend It Before You Spend It!

I have a new acronym to help you master your money! SIBYSI

Many financial experts will tell you not to spend your money before you get it. I totally, 100% disagree. I'm a firm believer in spending all of your money before you get it and here's why and how.

I call this form of budgeting the "SIBYSI Action Plan" (pronounced 'suh-bis-ee'):

Spend

It

Before

You

Spend

It

Now there is a difference between what I teach about spending your money before you spend it and "Counting your chicks before their hatched". Counting your chicks before their hatched financially means that you go out and purchase something like furniture on a credit card or even worse “No payments for 5 years” plan. By doing this you are sacrificing future income and wealth for a present “temporary” desire.

That is not what I’m talking about. I teach my clients and students what some financial experts call the "Zero Based Budget" Spend all of your money on paper before you spend any of your money in the real world.

Here's how the "SIBYSI Action Plan" works:

Prior to receiving some money, whether it be your paycheck, tax refund, birthday money or bonus. You sit down and write out exactly what you will be doing with every dollar and every cent of that money before you actually receive the money. You spend it all the way down to Zero dollars and then when you receive the money you execute the plan just like you have it down on paper.

Here are the top 3 reasons the "SIBYSI Action Plan" works:

1. You know in advance where your money is going! Have you ever asked yourself, “Where did all that money go?”. Not knowing what you are going to do with your money is like putting your money in a bag full of holes!
2. You eliminate emotional spending! The worse time to make a financial decision is when you are emotional! And that doesn’t just mean when your angry or depressed! I’ve made some of my worse spending decisions in a state of happiness…..”our team won!!!!! Wahooooo!!! Milkshakes and burgers on me!”
3. You are now being proactive! Stephen Covey writes in his book “7 Habits of Highly Effective People” that one of those habits is “To be Proactive”. Being proactive means that you are taking control of those things that you can control. You are not being reactive and allowing things to happen to you. I call living “reactive” the “victims lifestyle”. Being financially proactive means that you now “Master Your Money”!

Try out the "SIBYSI Action Plan" and tell me how it works out for you!

Carlos Frank
Your Personal Financial Coach
www.nextmoneystep.com
Twitter: twitter.com/CarlosFrank
YouTube: www.youtube.com/user/CarlosFrankSpeaks
facebook: http://profile.to/carlosfrank/

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

It's 2010 already?

No it's not a typo. I'm inviting you to Write your December 31, 2009 personal journal entry Today!

You create your future today! Over the first 7 days of 2009 I will be accessing 2008 and confirming my Goals for 2009.

One way I will do that is by writing a journal entry dated December 31, 2009. In this journal entry I will review all of the things that I have (will) accomplish in 2009! So I am creating my future today and attracting all the people, tools and favor I need to make it happen!

Faith is "calling those things that be not as thou they already are"!

Here are the areas that I touch in my December 31, 2009 Journal Entry:

1. Spiritual (daily prayer and reading of the Bible)
   
2. Family (Weekly date with beautiful wife, Weekly Tradition and Vacation)
   
3. Giving (I love being a giver!)
   
4. Physical ( Man I look good and feel good!)
   
5. Business (how many people lives my business positively impacted)
6. Books (3 books published in 2009!!!! Thousands sold!!!!!)
   
7. Vacation (Cruise and Disney World. Man I had fun!)
   
8. Financial (Income Goal, wow!!!! God is Good!!!)

So I invite you to do the same! Take time and sit down in a quite place where you can focus and meditate on what you want to enter into your journal on December 31, 2009! And write it out today!

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

Is part of your Journal entry about, financial freedom? If so and if you are in the Charleston area check out the following website and get info on the classes I will be teaching in January 2009!
Click Here for More Information on the Classes!

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