Sunday, January 23, 2011

The greatest risk of the season

Here we are at the beginning of a new year. Decorations are put away until next year. The last of the holiday treats were eaten or necessarily were discarded. And we begin to return to your daily routine. Millions begin to ' dropped the ball on their resolutions. And many people open the last and largest of the holidays — the credit card statement.

All the joy and positive emotions surrounding the holidays during the night disappear under a thick blanket of burden. Then we start the process of digging out. And only when we feel like we are getting somewhere, 15 April rolls around. Only a painful experience of digging out just in time to discover that it is the duty of a significant amount of IRS is enough to make anyone to adapt their methods.

In 2008, 80% of taxpayers with adjusted gross income (AGI) under $ 100,000 tax overpaid, while only 66% of those has earned over $ 100,000. The average amount that those people unduly high income? 1

$ 10

Regret is a powerful thing. Some people indulge during the holidays, just because they plan to lose weight during the new year. Some people decide financial pain in January is inevitable and go all out in December as if that will make it more bearable,. Many taxpayers, in fact a majority of those who earn less than $ 100,000, actually try to more have taken out of their paycheck for taxes as a productive method to advance financially (or bail out indiscretion of last year). But everyone knows that a savings account gain 0% interest is really useless. And if the transport of the debt, you actually lose money.

But the disappointment can control us. Million people are living life unconsciously led by past regret. Every decision. Each unhealthy habit.

Behavioral economics suggests that many people will make good choices just to avoid disappointment. How to lock your money to the IRS to offset the financial pain of recent indiscretion.

But what about this year? Why not for the first time, do this year on those things that you can control? Today and in the future? Break free from the slavery of regret. Don't make promises you can't keep. Understand what you can control and methods to ensure the success of the Institute. Systems or responsibility. Think About It. Don't buy a treadmill, get a trainer that will be knocking on your door and get your face.

Read posts by Ed Gjertsen from 7 January and look for his post next month, to begin adding intentionality and freedom in your financial decisions. Prove to yourself that you are actually responsible enough to save your money instead of the Government to keep it for you until April 2012. Live in financial freedom.

Aaron Coates

Aaron Coates, CFP ? TOP
Financial Advisor
Valeo investment advisors, LLC
Indianapolis, IN

Posted in credit/debt | Tagged debt, risk, IRS, regret, behavioral economics, credit card, financial freedom | 2 CommentsBe the first as this post.

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