If you’ve never thought a budget was for you then I am here to tell you that you absolutely must have one now! You could have avoided it before. You may have had some excuses in the past. But, now you have no choice. It is time to BUDGET! Why you ask? Because you may be getting a pay cut. I do not enjoy being the bearer of bad news but the government may be holding on to more of your hard-earned dollars. Yes, the government is at it again. The Budget Control Act was passed a few weeks ago and it may affect YOU. Here are the details that you need to know.
Our nation’s debt is increasing by $1.2 trillion by the end of 2011 even with necessary spending cuts. There are no tax increases yet to balance the budget however many familiar deductions may reduce or go away. The following deductions are subject to change: 1. Mortgage interest 2. Medical expenses 3. Charitable giving 4. State and local tax 5. Itemized deductions The good news however is that Interest rates are still at historic lows so now is a good time buy or refinance a home. But please make sure it is within your budget!
These tax deduction changes affect how much money you have to work with at home. What would you do if 5% of your income was taken away today? If you have a budget then it makes your personal changes easier to identify. You can see it all on paper.
The only way to mitigate the risk of governmental decisions is to take control of your own finances. Pay down your own debt, get on a budget, and by all means show the government that real change begins at home.
If you need help with your own budget give me a call. You can also sign up for my upcoming classes. Click here to learn more.