I’m a guy. I love things that go fast and make noise. Full disclosure: My wife would tell you I have too many “toys” so, please understand I’m not here to preach! A lot of you have been seeing tax refunds land in your bank accounts. I just had a Teammate call me yesterday excited that he was “only going to have to borrow $5,600 to buy his new 4-wheeler” since he had about $4,000 down payment from his tax refund. Of course, that statement was like the sound of fingernails on a chalkboard to my financial planner ears! While it may seem tempting to use that cash as your pathway to finance a new “toy” or vehicle or…(insert whatever you choose here), please don’t fall into that trap. Here’s my golden rule: If it’s not an essential item, don’t finance it! Pay cash. Yes, it will take longer to acquire (delayed gratification) but trust me, you will appreciate it and enjoy it a LOT more when you aren’t making payments on it! Speaking of tax refunds, if you are annually getting large refunds, consider adjusting your paycheck withholdings (quit giving the Government an interest FREE loan!) and/or, consider switching your traditional 401k contributions over to Roth 401k if you aren’t doing so already. Be smart. Make your dollars work harder for YOU throughout the year!
CalmWater Financial Network®, 3204 W Benjamin Ave, Suite 200, Norfolk, NE 68701 ~ (402) 371-5511
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth.
www.calmwaterfinancialnetwork.com