There are many different stories I hear every year about what people do with their tax return. Some people buy the latest computers, put the money toward a fancy new car, or spend it on extravagant vacations. I’m not sure if these are the best choices for extra income. Besides, isn’t a tax return actually your money you simply lent the government anyway? Think about it as spending your money and not the government’s money.

The Right Perspective

When you think of it that way, all of the sudden you feel like your refund isn’t a gift. And that’s good you wouldn’t feel like it’s a gift, because it’s not! It’s your money! That’s right, your hard-earned money that you simply overpaid the government.

Spending your money is more difficult than spending someone else’s money, isn’t it? That’s why it’s so important to have the right perspective with your tax refund. The last thing you want to do is go waste it all on non-essentials.

3 Things To Do With Your Tax Refund

Get the right perspective, and then consider these 3 things you can do with your tax refund:

1. Pay off unreasonable amounts of debt. Don’t get me wrong – all debt should be eliminated eventually. But you must make sure you follow the proper steps for debt elimination. Paying off your debt will allow you to breathe again: no interest payments, no unmanageable bills to pay, no financial stress. Think of this as an investment into your financial future. Sometimes, paying off debt can be a better choice than investing, as you are guaranteed to not pay a certain percentage of interest. It’s like an automatic increase of money!
2. Save for the future in an emergency fund. Emergencies happen – and sometimes they happen back-to-back! You have a responsibility to take care of your family and prepare for any unforeseen disasters that might come your way. I suggest saving 3 to 6 months of expenses in an emergency fund. Use your tax refund towards this goal if you feel it is best for you in this stage of your life. Having extra cash in the bank is a great idea, and there are a number of reasons to do so. Remember, you don’t have to only save money in an emergency fund!
3. Spend, but responsibly. Sure, you could go ahead and spend your tax refund. Some people see their tax refund as a redemption of an automatic (and forced) savings account. It’s understandable if you need to use your refund on essential, large purchases. Just be smart about it and don’t forget that you’re spending your money, not the government’s!

What We Do With Our Refunds

So what do we do with our refunds? We simply spend it down our prioritized budget and the remaining amount goes to whatever our area of focus is at the time. At this point in our lives, the remainder will go toward furthering college education. By having a consistent budget, we don’t expect extra money to spend on ourselves. We decide to fund life-long goals and make sure our future is bright.

How About You?

So what are you going to do with your tax refund this year? Let us know in the comments! Oh, and if you’re stressing out because you haven’t filed your taxes yet, read my eBillme article on how to properly file your taxes! It’ll help you get started – and finished – in a timely fashion.

Photo by AMagill

Before you get a tax refund you have to know How to Properly Prepare your Taxes. Our best tips on that can be found here.

Here are 3 crucial money management tips that everyone should adopt. Yes, everyone! Whether you have loads of cash in the bank or are struggling day to day, you should follow these very important tips. Are you ready? Here’s the first one:

1. Create an exciting monthly budget!

That’s boring, you think. Actually, not so much! You can have fun with your budget by doing a number of things:

• Sit down with your spouse (for those of you who are married) and have a non-confrontational talk about your long term goals. This can be fun, as you each explore your vision for the future and how your budget should support those visions.
• Write in some fun categories. You don’t have to merely add boring expenses like electricity and groceries. Have categories such as entertainment, date money, and fun money. Get creative!
• Set a day every month that you go over the entire budget have it be an event! Bake cookies, make some hot chocolate, or find some way to celebrate that you’re actively engaging in a process that will change your lives!

You see, making a budget doesn’t have to be a boring process. You can have so much fun with it. But that’s up to you! Make it happen!

2. Say no to more debt!

Credit cards. Student loans. Mortgages. Make it your goal to never go deeper into debt again. This can be a difficult commitment to make, but it’s an important one. Just think: a life with no more interest you have to pay. Isn’t that a beautiful thing? One might argue that debt can be used as leverage to turn around and make investments. However, this can incur a lot of risk can result in everything crashing down. Learn to live debt free!

You can find great ways of paying off existing debt such as using the debt snowball. Whatever your method, start chipping away at your current debt. The more you throw at the principal, the more you’ll save on interest!

3. Pay with cash when appropriate.

Today we have many payment forms to choose from. However, not are all created equal. Here are the most common payment types and how I personally use them.

• Cash: Real money is the securest form of payment. It can’t be tracked, and when you hand it to a merchant there is no way they can take even more money from your accounts. Another great benefit to spending with cash is that you feel the emotional impact of spending money, causing you to be more careful with your purchases.
• Online Bill Pay: Systems such as eBillme are the securest way to pay online. The eBillme payment system uses bank-quality encryption methods to make sure your personal information is never stolen or abused. It’s very much like paying with cash! Plus, the eBillme option gets you many ways to get cash back rewards!
• Debit Cards: Generally secure, yet not quite as secure as paying using online bill pay. Debit cards offer a certain level of convenience as they pull money straight from your checking account. I advise against allowing your debit card from leaving your sight (such as when using them for payment at restaurants) as your information might be compromised.
• Checks: I write checks when giving to charitable causes as they don’t incur the institutions any processing fees. Remember, checks to have personal information them such as your routing number and account number!
• Credit Cards: I advise never using a credit card. While you may like the rewards programs they have to offer, many slip and fall into debt. Don’t give yourself the opportunity!

Try to pay with cash when appropriate! You’ll save cash by wanting to hold onto that cold hard money! So there you have it. What are your favorite tips?

Photo By AMagill

Staying Productive: How to Keep Going when the Going Gets Rough – blog post.

Tip 1: Spend With Cash

Taking an envelope filled with cash will help you keep the spending under control. Using credit is never a good idea, as you will spend more when you forget to look at your account to see if you have enough money to purchase the things you are buying. The visual reminder of cash will compel you to save it up for the things you really want, not mindless trinkets.

The eBillme payment option allows you to spend with cash on your vacation while online. This is great for those of you who are savvy shoppers – always searching for the best deal.

When you physically see how much you have to spend, it helps you better control your spending. If you run out of money, you surely can’t spend any more! Credit, on the other hand, can cause you to spend more than you can bear.

Tip 2: Plan Ahead Before You Travel

Having a budget planned ahead of time will save a lot of frustration when you are trying to decide how much to spend on your vacation. It’s really not about how much you spend, but rather that you are intentional about how much you have available to spend. Choose the amount that is right for you.

After you have chosen how much money you are going to spend on your vacation, figure in how much time you have left before you leave. Got three months left? Divide the amount you have chosen by three. Save up that much money per month until you have reached your goal. If you try to save up all the money you need last minute, you’ll have much more stress. Don’t go there! Just like your vacation should be stress-free, so should your planning of it. Don’t procrastinate. Start saving today and you’ll be much better off.

Tip 3: Use All Available Low-Cost Resources

On your trip, don’t forget to take advantage of the many opportunities available to you. When you’re looking for a bite to eat, try cooking at the hotel using fresh foods from local markets. If you’re invited to stay at a friend or family member’s house on your vacation, by all means do so! You’ll save so much money! Analyze your resources before you go on your trip. Really sit down and brainstorm! You’ll be amazed at what you conjure up.

One thing I always do during my brainstorming sessions is try and think of the big things I can do to save money, as well as the minor things. Thinking about large-scale changes as well as small-scale sacrifices will give you more ideas on how you can keep that cash in your wallet.

The ultimate money-saving tip, although not mentioned above, is that you have to change your money habits and your thought processes. You have to have a financial transformation. The eBillme payment option is a great way to make secure payments online, and that’s why I endorse it on TheChristianDollar.com.

What are some ways that you have saved money in the past during your vacations? We truly want to hear from you. Help us make the eBillme blog a place where people can feel free to share their thoughts and concerns.

Having trouble with your checking account? Check out our tips on How to Create a Healthy Checking Account

The Two Methods Of Cash Flow

Method 1: Using a line of credit.

Some people choose to use credit as a means to cash flow expenses. While there are some advantages to using credit, the disadvantages far outweigh any benefits. Why do people use credit in the first place? Here are some reasons:

• Credit requires no patience. Access to instant money can be tempting. People naturally don’t want to wait for something they want. This results in student loans, credit cards, auto payments, and mortgages. While some argue that these things aren’t necessarily bad, everyone agrees that you’ll most likely pay interest when choosing the credit route. I don’t like paying money to spend money, so I shy away from the use of credit.
• Credit sometimes promises rewards. Banks will sometimes entice customers with cash back rewards and other bonuses for the use of their credit cards. But remember, you can lose a lot of money saving money. Anytime you get cash back you should consider it gravy, not a reason to spend.
• Credit is widely (and wrongly) believed to be secure. The use of credit cards is no more secure than using your debit card. Both debit and credit cards can be processed using a global payments company such as Visa or Mastercard. When you’re shopping online, use of either credit cards or debit cards is less secure than using a service such as eBillme. The eBillme payment option uses top-of-the-line processing methods using your bank’s online bill pay and helps protect against online fraud. Banks have securely processed payments through this system for years, and so should you!

Method 2: Paying cash.

When you pay cash, you’re paying with money you actually have. There’s a debt free revolution budding out of the last recession, and this method is becoming more and more popular. People pay with cash for the following reasons:

• Cash requires no interest payments. When you pay for something in full, you don’t have to pay extra money. This can save the typical family thousands upon thousands of dollars over a lifetime.
• Cash ends the transaction. Some people like to pay in full and get it over with! Paying with cash allows you to end the transaction and eliminates the stress of having to find a way to pay for your purchase later.
• Cash encourages healthier savings. When I made the switch from paying with credit to paying with cash, I found that the amount of money I held in my checking and savings accounts was higher. Why? When you plan on paying with cash, you need more money in your bank account to pay for goods and services. This helps when you have emergencies and need some extra money to pay for things.

When To Pay In Full

There are some transactions where it is near impossible or impractical to pay in full. For example, many people can’t conceive of paying for a four-year college degree up front. Understandable! The trick for these larger transactions is to keep a predetermined amount of money set aside. Allow me to explain. Let’s say it costs $5,000 per year (surely an affordable college education) to go to school. Based on that amount, it would be reasonable to save up $2,000 to $3,000 in a separate account to cash flow tuition payments, book purchases, and other college related expenses throughout the year. At the end of the month, let’s say your special account balance goes down by $1,100. Simply put this money back as quickly as possible to get back up to your predetermined savings amount. This is very similar to having a line of credit, but you don’t have to pay interest!

Don’t Forget To Prioritize

When you’re creating your cash flow accounts, don’t forget to prioritize. Here’s a bird’s eye view of our financial priorities:

1. Household mandatory expenses (always feed your family first)
2. Charitable giving (giving is crucial to the success of our financial plan, it takes the focus off ourselves and allows us to help others)
3. Emergency funding
4. Financial improvement funding (major goals such as college, paying off the house, investing, or anything that helps build wealth)
5. Enjoyment funding

You might have a slightly different view on how priorities should be set, and that’s okay. The point is to think it through and implement your plan! So, how do you cash flow expenses? Your thoughts?

When you walk up to the counter in a store you have a variety of payment choices, be it the traditional credit cards, store branded credit cards, cash, debit, etc… and as the data is telling us, people are most comfortable with cash. Offering a variety of methods means giving customers comfort when it comes to the thing that matters most, their money.

Yesterday we saw an example of that with Apple and the iPad, the scenario was fairly straight forward, customer takes $600 to a store to buy an iPad, she is rejected, and the news is all over it.

When it comes to online shopping the payment mix is quite different. The majority of payments are credit or credit alternatives. Customers are clearly not shopping with their prefered payment methods.

Are some customers not buying online because you only offer credit?

The Answer is yes, and the amount was estimated by Javelin Research to be a staggering 21.1 Billion in 2008 alone!

Will giving people choice at the checkout get you a new customer?

The answer is yes. If you offer a secure cash payment option such as eBillme and allow consumers to pay with money they have without disclosing personal financial information, be it using online banking or walk-in (Similar to the iPad scenario) you are going to gain sales, and new loyal customers.

Do you agree that offering a secure cash payment method at the checkout will help you increase sales?

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According to the eBillme Online Spending Index, 23% of Total respondents said ‘Yes’ when asked ‘I would purchase more online if I could control my finances and pay using cash. ‘

We’re all familiar with the approach our Grandfather took when he was dissatisfied with something and wanted to buy himself more control in the consumer world: a) Ask to see whoever is in charge, b) Write a strongly worded letter or, c) Vow never to bring their business back to the offending establishment ever again. Effective in their day, but do these approaches work in the internet age?

Another habit my grandfather had was to simply pay with cash. When I asked him why, he said simply “’cause when the money’s gone, I stop spending”—wise words.

Find out more about your options when it comes to spending cash online. Find out what retailers accept cash payments online, and tips on becoming an online shopping expert!

The only thing we ask is you use eBillme when you checkout.

Here’s how it works:

• At the checkout section while shopping online, choose eBillme as your payment method.
• You’ll have the option to sign up for eBillme’s cash back rewards program
• Take just a minute or two to sign up
• Once you’ve signed up, you will immediately start earning 1% cash back for every order you make
• After earning $10 or more in rewards you can redeem while shopping on eBillme merchant sites, or you can choose to keep racking up the rewards before redeeming
• Each month you will receive an email summary of how many cash back rewards you have

It’s easy to redeem your rewards:

• When you have a minimum of $10 in cash back rewards, your monthly statement will have a link to “create a cash back coupon”.
• Simply click the link, follow the instructions and create a cash back coupon code.
• The next time you use eBillme at a participating merchant simply enter the coupon when you are accepting eBillme’s Terms and Conditions.

It’s that simple!

Now, your rewards will last for 2 years, so you have time to hold onto those, accumulate more, then redeem them for cash later. Once you create a cash back coupon it’s valid for 6 months.

It coudn’t be easier to shop and get money back! Try it out and once you do, come back here and let us know how you like it.

When you go to a store near you, you walk up to the teller, hand off the new blender you like, get it scanned and pay. When you pay, you the customer make a choice, you can pay with credit instruments, or you can pay with cash or cash alternatives. The credit card bill will absolutely have some impact on how people will pay in general, but unlike brick and mortar location, online merchants have by in large depended on credit instruments to process payments. This has several implications especially to those retailers serving the under 21 market.

The credit card bill has reduced the ability of those younger than 21 to borrow, with some exceptions

1. You may still get credit if your parents sign off
2. You will need to take a course before you qualify for credit
3. Show proof that you have stable income and the ability to repay what you borrow.
4. OR, You can get Married

If you are younger than 21 and are not ready to walk down the isle just for the privelige of shopping (especially shopping online), you can turn to cash payment alternatives such as “eBillme Teen” to buy online with cash.