I have jokingly told people for years in my workshops that I would look so good behind the wheel of a Lexus LS460! I would go on to say that my wife would look even better riding in the passengers seat beside with me. Both would always bring a chuckle as intended.

For many it is the truth. Many secure their “ride” to be impressive! Whether it is to please themself, someone they know, or more than likely someone they do not know who may be dring down the road – so many allow their car to project their image!! Is that you?

A vehicle is a tool. Like a hammer, a screw driver, a drill, a blender – it is a tool. This tool that rolls on four tires is to enable us to get from point A to point B and back. Unfortunately, this tool has become a financial drain to so many people who live to impress someone.

Have you ever looked at what that car really costs you? Take a look, but make sure you are sitting down first.

What is your monthly payment? Take that amount and plug it into a simple savings tool you can find on the Internet. Project that monthly payment out over 20 years at 8% interest and what amount do you have if you had saved/invested that amount each month. What would you have in 30 years? 40?

To many running those numbers will get their attention to see what is being given up with each new car purchased.

There is another way…

This week my daughter made an appointment with the eye doctor.  For whatever reason, she can not see as good as she used to.  It may be that a lens is bad, that her eyes have gradually gotten worse, or something else.  In either case, she has lost focus.  Recognizing that, she determined she needed help to get things back in focus.

As I thought of that, it reminded me of people who have lost focus on specific areas of their lives.  Maybe a marriage, a personal relationship, a spiritual walk, finances, career, and maybe life in general.  Like my daughter above, something(s) shows that you have lost focus.

Focus helps you succeed.  In your marriage, focus means you are string to meet the needs of your spouse and that builds a strong, close relationship.  In your spiritual walk, you tend to lose focus on who God is and what He is in your life and you become more self-centered and doomed to experience pain.  In your finances, things begin to spin out of control and you feel there is no hope of turning things around.

Fortunately, there is hope.  You need to get things back in the right focus.  Focus brings intensity and results.  When we focus we see what is important and make the necessary changes to get things back on track,

What is out of focus for you and, more importantly, what are you doing to get things back in focus and on track?

Have you started thinking about taxes yet?  I know it is the dreadful thing that we would like to avoid, but they say that taxes are one of the two certain things in life.

Many will begin getting W2 statements this month along with the 1099’s and all the other documents to begin preparation for our 2011 tax filing window.  With that filing, many of you will get a refund of the taxes you have overpaid through the year.

That overpayment, from each one of your paychecks, is money you could have used to buy food, pay utilities, save for a car, save for a vacation, fund your retirement account, etc.  But no, your money has been held by the US Treasury to make sure you had enough for your tax obligation.

Did you know you can better manage the amount of money that you do have withheld from your paychecks?  You can go online (see below) to the the IRS, fill out all the questions, hit enter and learn what you should be claiming as true exemptions.  By making the changes on your W4 and submitting to your employer, you can begin bringing home more of your money to manage to your plan each month.

Likewise, if you find yourself owing each month you can use the tool to determine how to correctly withhhold to avoid owing the IRS each year.

Two things to keep in mind.  First, an exemption is NOT the same as a deduction.  You should not have the same number of your dependents as your exemptions unless you run the program to suggest that.  Some people decide that since they have five in the house that their exemptions should be five.  That is not necessarily the case.

Second, this tool is not fail proof.  Your have to enter as correct of numbers (projections for this year) as you can and if your numbers change during this year, you may need to re-do the whole task.  The IRS and their programmers are not as perfect as we would like.

The tool is now available for this year.  Want to check it out?  Click here.

I recently read an article on wire.com that really had me excited from the title.  Like most Americans, and people around the world, our ears (in this case eyes) perk up when we see that the economic conditions might be improving.  So, you can imagine my interest when I saw the the first part of the title, “Another Positive Indicator:, but as I finished scanning the article my heart sank -Another Positive Indicator: More Consumer Debt.  Seriously, more consumer debt is a positive thing?

According to the article, Americans increased their borrowing by $20.4 BILLION in November 2011.  Along with the story, I heard someone interviewed on radio say that either people are feeling more optimistic about their jobs or that they have very short memories.  I vote for the later.

Why would we, collectively, increase our borrowing more?  I think it is part of the Thanksgiving Day Syndrome where people feel that they have a little more room and then gorge themselves with more.  Instead of turkey and pie, in this case it is debt.  They have lost the feeling of the pain from the last episode and now they can take on more.

Do you remember the definition of the word “insanity”?

One of my clients recently shared with me that in all their years of marriage, this past Christmas was their very first debt-free one.  They indicated how all the gifts were purchased and paid for well before the holiday.  And while they escaped the mad rush and stress of the holiday spending, now they are stress-free knowing that there are no credit card bills on the way to their mailbox.

Why do we go and spend more than we have?  One example to all of us may be our government.  This morning I read that our president is requesting $1.2 TRILLION be added to the debt ceiling.

I guess some of us will never learn…

In a few days we will ring in yet another new year. Will this one be any different for you? Will you continue to look at this time of year as a time to make resolutions or a time to set and archeive your goals? Can I suggest a new set of goals and new results?

Like many, you may be looking back now to see that your resolutions last year were not kept or achieved. Why not? For so many it is because they were resolutions and not goals. You need goals and a plan to achieve those goals to be successful.

Start NOW! What are your goals for this new year. Big or small, what is your plan and timeline to complete your goals? Weight loss, better physical shape, better financial position, starting college – whatever it may be, now is the time to get those goals done on paper. There is power in writing out your goals. There is power in seeing, monitoring, tracking, and marking off goals that you set. Do you keep yours in your head? Well, they will most likely stay right there.

Next – put dates next to those goals. When are you to complete them? You may find that your bigger goals need to be broken into pieces or steps. What are the dates for those smaller steps and when do they lead to a completion of your overall goal? Monitor these dates. Get them on your calendar. Share with with your spouse or close friends to hold you accountable. These dates will be powerful if you realistically set them and really monitor your achievement against them.

Picture yourself achieving your goals. This is highly motivational. The person who can see themselves and what they would look like after losing 40 pounds is more likely to achieve their weight loss goal. What does your end of goal look like?

Finally, when you reach a goal you need to celebrate. Reward yourself for what you have a accomplished. Realize that you have achieved something big. Understand that you motivate yourself for the next goal when you celebrate your successes.

What did you accomplish this past year? Are you ready to make this happen in the new year? Get started now!

Happy New Year! Make it one.

Recently, I had the opportunity to sit in a courtroom for a full morning while a judge was presented with several case of people defaulting on their debt.  It was not a real happy scene to say the least.  Honestly, it was quite depressing.

I was there with a client. This elderly client had tried everything to address the debt she owed and, with this one particular debtor and attorney, no one would listen.  She had nothing to give them.  Her income was not there to satisfy the collection.  She had no assets of any worth that would appease their need to replace the debt she owed.  In short, they refused to listen to her position but she still lost.

Several were in that same courtroom in the same situation as my client, but they had more zeroes behind their debt.  In each one of those cases, they too lost.

I was not there with my client for any other reason than to emotionally support her.  She owed the debt, knew it, wished she had the money to pay, and knew she would likely lose.  However, we were hoping that they might drop their pursuit or not show up.  They did not.  She also wanted the judge to know that she was not a bad person.

In the end, they both lost.  She lost the judgment and the creditor lost on the money she owed and the money they paid to legally find out she had nothing.  My guess is that they paid 50% of what was owed, again, to pay the attorney to sue her.  For nothing.  She has nothing.

That is not the case with everyone.  Others try this approach because they are tired of paying on the debt.  Others find themselves here temporarily as they find themselves in a bad situation.  Regardless, understand that the court will rule on the side of the contract you signed to stand behind your debts you incur.

The judge that day admitted that they economy collapsed just prior to him winning his seat.  Since then, it has been the toughest job he has ever had.  Why, the law says we have to pay and so many good people are affected.

What is my point?  Work to pay your debts.  Don’t ignore them.  Don’t think they will go away because you ignore calls from creditors.  They will not.  Sticking your head in the sand does not help.

Get on a plan that addresses your current financial situation and your plan to eliminate debt.  As we enter this new year, make that your goal – to get out of debt!  Get started now and avoid the courthouse.

The other point – avoid debt!