Sacred Cows and Debt Elimination

When I discuss ideas for creating extra money to use forndebt elimination in my DebtIntoWealth seminars, some routinely draw sacrilegious gasps.

I call these the "Sacred Cash-Eating Cows," as they have been elevated to the status of "untouchable" for any purpose other than immediate gratification, and certainly not for something as crucial to financial security as debt elimination.

Given the carnage inflicted on family finances in 2008, it’s time to "touch" a few of these "untouchables" to create as much debt-elimination directed cash flow as possible in 2009. I’m certain many of the 3.6 Million U.S. workers who lost their jobs in 2008 would have traded a few sacred cows for the security of having used them to pay off debt.

Today's sacred cow is the timely topic of income tax refunds. If you expect a refund of 2008 taxes, file your return as fast as possible in 2009. When you receive your refund, use 100% of it to pay off or dramatically reduce #1 priority debt. At the same time, to avoid receiving another refund in 2010, adjust your W-4 exemptions using this free W-4 assistant:
http://www.paycheckcity.com/W4/w4instruction.asp

Your objective is to receive your 2010 refund up front in your 2009 paychecks and use this additional cash flow to pay off your #1 priority debt.

This sacred cow earned its status because it’s one of the few ways the saving-challenged can accumulate cash -- by lending a portion of their income to the government at 0%. And, ironically, receiving a large refund check has psychological benefits, but this is a false financial high.