Skip filing your tax return...
The IRS will get their money, you skipping a year just adds on to the penalty and fees you will have to pay in the end. Please believe me when I tell you that credit card interest has nothing on what the IRS charges for unpaid back taxes.
If you end up owing every year, increase the dollar amount taken out of your paycheck each month.
Ex: Amount owed each year: $1,500/12 mos = $125 per mo. or $62.50 additional bi-weekly per pay
Entrepreneurs, authors, freelancers, etc. - immediately calculate at least 25% of your earnings from each job, sale, etc. for income taxes. Don't wait until the end of the month, set aside a separate account for your taxes. Talk to an accountant about setting up a tax payment schedule.
Go on vacation when you have no savings....
Okay, yes you work hard and everyone wants a vacation. But plan for the vacation throughout the year. Set some money aside, now is a great time to start because by summer you can have your $1,000 in an emergency fund and money for vacation. That is... if you are willing to sacrifice to do so. Emergency fund trumps vacation... I know.... bummer.
Tap into your 401k before you liquidate stock, sell valuables...
Many have lost their jobs or faced another financial hurdle - don't immediately liquidate your retirement accounts. First tap into any valuables you may have that can be sold, paintings, jewelry, etc. in addition to individual stock. Let your retirement fund be a very, very last resort. Even if you make a hardship withdrawal you still take a big hit and end up with no retirement savings.
Co-sign on anything for anyone.. nope.. not even your kids...
70% of people who co-sign on a loan for someone else end of paying for the loan themselves. Can you afford to pay for someone else's car, home, new windows... you get the picture.
Hide money from your mate....
The things money arguments are made of - dishonesty, distrust, selfishness. Learn to work together on your money or there will be trouble. Decide how you will pay the monthly bills, save, invest and then separate what's left for miscellaneous individual purchases.
Borrow more money.....
You can't win a race running in place. Adding more debt, while trying to get out of debt, makes no sense! Set your goals, develop a debt payoff plan and stop borrowing. You'll be happy you did.
Panic and get a payday loan.....
Everyone knows how much I dislike the cash advance and payday loan establishments. Don't let your financial situation scare you so much you run to one of these rip off shops! Pay day loans often prey on low income neighborhoods and can cost $30 for every $100 borrowed. That's crazy! Stay away!
-Dorethia
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