The Minimum Wager

IRS Presents: Top Ten Tax Time Tips

Tue, 05 Jan 2010 18:52:10 GMT

I'm on a few IRS mailing lists, and this message seemed worth sharing. I particular like that they included some help contact info at the bottom. I usually have a really good experience when I call the IRS people with questions, so don't hesitate if something confuses you.

IRS Presents: Top Ten Tax Time Tips

While the tax filing deadline is more than three months away, it always seems to be here before you know it. Here are the Internal Revenue Service’s top 10 tips that will help your tax filing process run smoother than ever this year.

Start gathering your records Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support an item of income or a deduction you’re taking on your return.
Be on the lookout W-2s and 1099s will be coming soon from your employer; you’ll need these to file your tax return.
Try e-file When you file electronically, the software will handle the math calculations for you. If you use direct deposit, you will get your refund in about half the time it takes when you file a paper return. E-file is now the way the majority of returns are filed. In fact, last year, 2 out of 3 taxpayers used e-file.
Check out Free File If your income is $57,000 or less you may be eligible for free tax preparation software and free electronic filing. The IRS partners with 20 tax software companies to create this free service. Free File is for the cost conscious taxpayer who wants reliable question-and-answer software to help them prepare a return. Visit IRS.gov to learn more.
Consider other filing options There are many different options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face-to-face help at an IRS office or volunteer site. Give yourself time to weigh all the different options and find the one that best suits your needs.
Consider Direct Deposit If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check.
Visit IRS.gov again and again The official IRS Web site is a great place to find everything you’ll need to file your tax return: forms, tips, answers to frequently asked questions and updates on tax law changes.
Remember this number: 17 Check out Publication 17, Your Federal Income Tax on IRS.gov. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
Review! Review! Review! Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors made by taxpayers.
Don’t panic! If you run into a problem, remember the IRS is here to help. Try IRS.gov or call our customer service number at 800-829-1040.

Check the online price

Tue, 05 Jan 2010 01:11:36 GMT

One thing I've learned this year is that the online price and the in store price for an item can vary dramatically.

With my Christmas money I had hoped to buy the last the seasons of X-files at Walmart where they had been selling for $13.42 each a month before. Unfortunately they were all sold out by the time I got to the store. I checked on walmart.com and they were available for about $22 each. However my B&N members card was still active, so I decide to try that store first. They had some in stock, but they were about $40 each. A few days later I was got an e-mail from barnesandnobles.com saying they had a sale going, so I check their website. I found the DVDs I was looking for at $15.99 each, and my members discount took off $1.60 each, and shipping was free in this case.

That's over a $20 dollar difference between the store and the website within the same company. So check both if you are comparing prices on an item. Happy bargain hunting.

How to save $1000 this year.

Sat, 02 Jan 2010 15:31:39 GMT

1000 divided 12 months is: 83.33333333. So if you can save $84 each month through November and $76 in December, you will have $1000 more in savings at the end of the year. Here's a table that shows how it will grow:

January	$84
Febuary	$168
March	$252
April	$336
May	$420
June	$504
July	$588
August	$672
September	$756
October	$840
November	$924
December	$1000

Tables like this can be helpful regardless of what your savings goals are, so feel free to drop in your own numbers and post it somewhere that you'll see if often enough to keep you motivated!

I had to lean on my savings a bit at the beginning of the year as I was starting up my business, by some mircle I managed to get it to eek up close to $3200, which is much better than this time last year. Now that I'm able to pay myself a regular salary, I hope to do some more regular and aggressive savings. I really want to get my emergency fund back up to $5000. Realistically that will only happen this year if I'm able to increase my pay (which I hope do in next few months). Right now, however I'm giving myself the more realistic goal of saving $100 a month.

2010

Fri, 01 Jan 2010 23:52:54 GMT

Hope everyone had a safe and happy New Year.

I'm spending today and tomorrow wrapping up old projects, and getting myself and my business ready for the New Year. I watched a great movie last night "James Journey to Jerusalem" one of those best films you've never heard of type things. The central theme of the film is getting caught up in the pursuit of money and things and how it can cause you to lose sight of your true goal(s).

So I'm encouraging everyone to reflect on your goals for life and what you're doing or should do to move towards them. Are you moving towards them? Are you letting other ultimately less important things distract you? And are you dealing honorably and honestly with the people in your life? We begin our book by saying that money is a means to an end, not the end itself. That's something I believe very deeply.

Goals don't always have to be grand things. They can be very simple, but having them helps us keep focus. Ask yourself what your ultimate goals are? What steps do you need to take to acheive them? What can you do in the coming year to get yourself closer to your goals?

Too much in checking?

Sat, 26 Dec 2009 18:00:09 GMT

I hope everyone who celebrates Christmas has/is having a lovely one.

After coming home from my grandmother's, I spent some extra time with my brother (who is also probably my best savings pupil). He was trying to decide what to do with the Christmas money he had gotten. I went through my priority list for unexpected income and that brought us to his Emergency Fund, at which point he reveals to me that he has $9000 in his checking account. My first reaction was to tell him "Good job!" My second reaction was to go "Wait, you have that all in regular, no interest checking?"

When you first start out, it may makes sense to only have a checking account as they tend to have no or low minimum balances. However once you saved enough to be safely above the minimum balance, you really ought to move a portion of it into an interest bearing account. Partially to earn interest and partially to give your money better protection. If some one steals the debit card linked to your checking, this can help prevent them from getting to all your money. It's part of the "don't keep all your eggs in one basket" bit of wisdom.

My brother and I made a list to figure up his living expenses for 6 months, and decided that $5000 would be a reasonable amount for an Emergency fund. So he's going to move that much into a money market account, where it will both gain interest but remain fairly accessable. He is 24 and has no retirement fund set up yet, so I've encouraged him to look into setting up a Roth IRA (last I checked $2000 was the minimum for getting one started.)

His monthly expenses are generally less than $1000, so I told him he normally didn't need to keep more than that in his checking account. He should consider keeping the remainder in a regular savings account (which in the book, I would label as short term savings).

Unless you have a larger than average purchase in planning, you generally don't need to keep more than a months worth of expenses in your checking account, particularly if it's not an interest bearing account. While I realize the interest rates on regular savings are fairly low right now, every little bit helps. Compound interest is a marvelous thing. Particularly as your savings increases you want to diversify it, so it can be as safe and fruitful as possible.

Sun, 20 Dec 2009 05:34:48 GMT

A cutting from Chapter 10 In our book Chapter 10 deals with savings, and we talk about a few different savings methods. The Bank Bar is something that I used with moderate success for several years, but I think it's a little convoluted for most people.

What I've left in the book are two other methods...a doubling method for young savers still living at home, and another more normal approach of using different bank accounts to seperate your spending and savings. I'd love to hear back from other people. Is this too confusing or should it be included in the book?

Only For Those Who LOVE Math: The Bank Bar

If you don't need to make a lot of withdrawals during the month and have a few thousand saved up, you may consider keeping all your money in a Money Market account. The benefit of this is that Money Markets allows you to write an occasional check but also allows money that would have been in no interest checking to gain interest. Interest bearing checking accounts have popped up at some banks now, so consider those as well.

The bank bar method requires discipline, because you separate your money mentally rather than materially. So we don't recommend this for everyone.

Your primary bank bar represents your emergency fund/long-term savings. You want to slowly raise your bank bar each month until you reach your emergency fund goal. For example, if you have $3300 in your Money Market, and you consider $3000 of that to be your emergency fund, mentally you tell yourself "I have $300". You DO NOT dip below that $3000 for anything short of a life and death situation. You "bar" yourself from that money. Each month you might raise that primary bank bar by $50 (as an example), so after a year your bank bar would be $3600. Keep that up until you reach your emergency fund goal.

You may also have a secondary or even a tertiary bank bar. Say you want $100 of that $300 to be designated as short-term savings. That $100 needs to float on top of that raising primary bar. Say you're adding $10 a month to short-term savings. First month, your primary bank bar is $3000 and your secondary is $3100. The second month, your primary bank bar is $3050 and your secondary bank bar is $3160. Starting to see why we only advise this for people who are good with math and discipline? You're "available" money is only the amount floating on top of that. So if during the second month, you have $3200 in your account, you think to yourself "I have $40 in the bank".

Take care with the small things

Fri, 18 Dec 2009 19:12:28 GMT

I read this article this morning:  Fired Over Fantasy Football: The Unfortunate Case of Cameron Pettigrew I'm not going to debate how fair or unfair his firing was. Legally the company was completely within their rights. While it varies a bit from state to state, in Tennessee a company can fire you for pretty much any reason as long as it's not your race, gender, or orientation (etc.).

I've had friends fired over things that really should have resulted in a wrist slap and conversely, I've known people who should have been fired (for harassment, perpetually tardiness, etc.) but are only given wrist slaps. Unfortunately unless you can prove blatant discrimination, there's little you can do to get compensation or your job back. And there's no magic wand to make your bosses fair minded.

However, you can be extra careful with your own behaviour. Certain things are worth the risk of getting fired over. But there's a lot of little behaviours that just aren't. In Cameron Pettigrew's case, he apparently was an organizer of a fantasy football league. He knew it was against his company's policy, but since he had superiors involved too, he thought it was okay. Apparently there was some light gambling going on in conjunction (everyone pitched in $20 to join, and pressumably the winner got all or most of the money). Cameron assumed since it wasn't a lot of money, it wasn't really gambling or a big deal. The company he worked for (Fidelity) disagreed.

Coworkers can get you in trouble with stuff like this. At my first daycare job (back when I was 18), it was against policy/DHS rules to let an infant hold their own bottle. I was feeding one baby and another started crying. My coworker urged me to let the baby feed herself (she was physically capable). I began to protest, since I knew the rule, but since she was my senior, I thought she knew better than I did. So I let the baby hold her own bottle, while I checked on the crier. Sure enough my boss came in and chewed me out for breaking the rule. Thankfully, I didn't get fired for that, but my boss would have been within her legal rights if she had fired me.

Sometimes what we see as no big deal is a big deal to an employer, and 'everyone does it' is not always good protection. Particularly when employment is down and employers have a longer list of applicants, they have less incentive to keep anyone they see as a potential problem. While there's a social aspect to every workplace, try to keep in mind that work time needs to focus on work and the needs of your company rather than your personal needs. There's a balance to be met, but if you're considering doing something that your boss/company frowns on, even if it seems small, ask yourself if it's really worth getting fired over?

Visa gift cards and unexpected income

Tue, 15 Dec 2009 20:53:35 GMT

One of my parents (of the kids I watch) gave me a Visa gift card for Christmas. I'm grateful for the extra cash, but it baffles me why people would waste money on Visa Gift Cards. For starters there's a $4.95 activation fee (may be higher in other states). And if you don't use the amount on the card within 7 months, they start charging a $2.50 fee (until the money is gone). You can't draw money out from them, so there's no way to put the money into savings. Personally I'd prefer the flexiblity of fee free cash...but again I'm not complaining.

I will certainly be putting the gift card to use and soon. I'll probably be using mine to cover some Christmas presents for others, but I thought I'd repost our priority list for unexpected income:

Priority 1: Needs

Priority 2: Small Debts

Priority 3: Emergency Fund

Priority 4: Large Debts

Priority 5: Big Dreams and Entertainment

Making Something?

Mon, 14 Dec 2009 05:51:25 GMT

LJ did a spotlight on a community for handmade gifts: handmade_gifts

My bracelets are coming along. I've made eleven of them so far. (I'm also trying to use this as an opportunity to whittle down my overgrown bead collection.) Gonna have to redo the one from my grandmother, since I goofed on it. But thankfully it shouldn't take as long as redoing a scarf.

I've been doing my mother's Christmas shopping for her as well (since she hates it, and I enjoy it). I was rather proud of one find today. Barnes and Nobles has a collection of the entire Chronicles on Narnia as audio dramas (on 19 CDs) for $12.98. If you have a little gift money to spend and a fantasy loving relative, it's a nice find.

How my junk mail saved Christmas

Sat, 12 Dec 2009 08:49:04 GMT

At least for my nephew. The transition with the new business has been hard on my savings. I ended up with only about $30 in spending money for the month of December. Kohl's has been sending me discount cards "Buy $50 and save 5%" type stuff. This week however I got something in the mail too good to pass up. A $10 card with the only requirement being that my purchase was at least $10 (and I only had a 3 day window to use it), so I used it to get him his first Star Wars action figure. (He's seven and Star Wars is kind of our thing.) The action figure was about $7, so I got a small thing of Godiva chocolate pearls to make up the difference. Ended up being $1.47

Anyway, cards like this are kind of rare, but this is the second card like this I've gotten in the past couple years (first one for a different store). So take the time to look over your junk mail before you throw it out. May as well take advantage of those rare freebies.

**********

I managed to knit 3 scarves this year...working on a fourth, but I screwed up and had to start over, so probably won't get it done on time for this Christmas. My grandmother let go of all her jewelry making beads, and I rescued them from our last yard sale. So I'm trying to make up for the low funds by making bracelets and/or necklaces for my female family members and friends. I've got three done so far.

A Youtube Video worth watching

Tue, 08 Dec 2009 15:20:11 GMT

I found this video from this article: Former Bank of America employee offers inside look at bank's practices The article is worth a read too.

Honestly Bank of America has been on my evil bank list for a while, but the part about credit card companies targetting the young and the old to make a profit off all the fees they can charge them (because they're less likely to be able to pay on time and more likely to make a mistake) is pretty universal.

Sneak Peek at the book cover

Mon, 30 Nov 2009 18:56:34 GMT

The big white chunk at the bottom is space for the bar code.

Online Dating Tips

Mon, 30 Nov 2009 01:13:56 GMT

One of my missions is to educate people on using online dating safely. I'm also a Monk fan, so I decided to watch this "ask Disher" video. It was cooler than I expected. Disher is a goofy character, but the advice he gives here is dead on (except maybe the air brushing, don't abuse photoshop).

http://www.usanetwork.com/series/monk/video/askdisher/

This is a ultimately a budgetting blog for singles, so I wanted to share. For the record, yes, I do use online dating. I like okcupid.com because it's free and more customizable than most free sites. I wasn't as impressed with Plentyoffish.com, but it is also free. And it's been a year or so. They may have improved (their home page looks better than I remembered). Anyone else use a free dating site? Or have questions about them?

Volunteer to take the leftovers

Sun, 29 Nov 2009 04:43:31 GMT

December is often laced with a cluster of holiday parties, and many times there's an excess of food at end. Volunteering to help with clean up is a nice thing to do, but it's also a good way to score some extra food that would otherwise be wasted. Particularly if someone calls out "Would anyone like to take this home?!" Don't be shy. Raise your hand, say thank you, and score a little extra for your pantry.

Book Update

Philip (who shall hence be known as P.J.) is typing up a short chapter that we were originally going to include, then cut down to a blurb, then forgot, and have now decided that we really need to include it. He's promised to get it to me tomorrow. I'm gonna do my rewrite on Monday/Tuesday, and then it's on to the final editing stage.

I *think* we can get it out as an ebook towards the end of the month. There may be a couple weeks delay on the printed version, because I need to order a pack of ISBNs and may not have the funds til late December. Meanwhile, I've been working on the cover designs. I'll try to get a shot of it up soon and see what you guys think.

Ooo, that's neat. Free Quickbooks

Thought I'd tack this on for anyone else who is considering starting their own business and/or interested in Quickbooks. On the Quickbooks website there is a free version of their Simple Start Program http://quickbooks.intuit.com/product/accounting-software/free-accounting-software.jsp It's not easy to find from the main page. You have to get to the Simple Start page first then follow a link from there. It's more limited than the paid version, but if you have a short client list, it'll get you started. I had planned to buy Quickbooks Pro anyway, but downloading the free version will buy me a few months before I have to put up cash.

Black Friday and Christmas Budgets

Fri, 27 Nov 2009 04:53:49 GMT

Hope everyone had a wonderful Thanksgiving, and that those of you traveling get home safely.

After a day dedicated to giving Thanks, Black Friday rears it head to spread the fever of commercialism. Honestly I'm not against a little commercialism, but it should add to the fun of the holiday rather than make things more stressful.

Generosity should be encouraged, but it's not going to make those who love us happy to find out we went into debt or suffered financial hardship just to buy them a new toy. Set a budget for how much you can spend on Christmas gifts, then make a list of who you want to buy for. If you want to sacrafice to get something for others, take the money from your entertainment budget, not from your necessities.

However you spend the day after Thanksgiving, be safe, be courteous, and have a nice time.

Be Fire Safe!

Mon, 23 Nov 2009 15:25:35 GMT

I reached my NaNoWriMo goal early, so I'm back to the budgetting book.

It's been in an interesting month. Mostly good, some not so good. The apartment building three down from my brother burned down last week. 20 units were damaged or destroyed. Thankfully no one was killed and only a couple people suffered non life threatening injuries. In this case it was arson (the suspect has confessed and been arrested).

I was at my brother's apartment at the time, and we spent an anxious hour watching from a distance, hoping everyone was okay and that the blaze wouldn't spread. My brother's street dead ends, so I was stuck there until long after midnight waiting for the firetrucks to clear.

The Red Cross was helping the people who had been displaced. But I know this was a major upheaval for them.

I've heard before that there's a higher instance of fires around the holidays. People are cooking more than normal and lighting candles for decoration, sitting around the fire. That's part of the fun, but do it safely. Don't leave stove, ovens, candles, or any type of flame unattended. Make sure anything hot is place on a surface designed for it. Make sure doors and windows are kept clear for escape purposes. Check out this site: http://www.firesafety.gov/

Only one guy in these twenty units is responsible here. Everyone else fell victim to his vicious disregard for their lives and property. So it did get me thinking about fire/renters/home owners insurance. There are certain priorities that take precedence like food and water, but if you can work it into your budget, it's a good idea.

Use reusable bags at Target

Sun, 08 Nov 2009 07:08:53 GMT

Taking a brief hiatus from my hiatus to share a discovery. Apparently Target is also giving discounts now for reusable bags. This may be old news, but it's new to me. I remembered to take a reusable bag in with me today and got 5 cents off my purchase. Okay, it's not a lot of money, but little bits here and there help (particularly if you frequent Target). And it's good for mother earth.

NaNoWriMo is going good for those who were curious. I'm now resuming the hiatus.

Blog Officially on Hiatus

Fri, 30 Oct 2009 14:21:09 GMT

Many thanks to those of you who've been reading and even more thanks to those of you who reply.

Philip and I will be participating in NaNoWriMo in November, and between that and keeping up with my day to day business, I will have no blogging time. To be honest, I've gotten a little dry on topics lately. It's still my plan to get back to the budgetting book and get it print on demand ready (probably on Lulu) in December. So I'll be back when there's actual book news to share.

Hope everyone has a lovely holiday(s) and that you all manage to avoid the flu.

Cheapest Eats at Restaurants

Tue, 20 Oct 2009 04:44:04 GMT

Long story short, I ended up eating out twice over the past couple of weeks. I enjoy scanning menus to look for the cheapest meal possible. At Olive Garden, it's the soup. For $4.50 you can get a bowl of very yummy soup and breadsticks that they will refill for you without any extra charge. Since I was recovering from a cold, the nice hot soup was absolute heaven.

After church yesterday, I accidentally ended up going out with a group for lunch (as in I tried to ask out one person. They missunderstood and opened invitation to others *sigh*). We all finally settled on Shoney's, which isn't the most expensive place, but I was upset over the missunderstanding and had lost my appetite, so buying the buffet seemed wasteful. Thankfully I found the baked potato for $1.69, which was enough to make a light lunch for me. Since I mainly was going for the conversation, this worked out well. Actually it worked out even better, foodwise, the kitchen staff lost our order, so we were allowed to get free salad since we had to wait forever for our food.

Anyone else have a favorite cheapest meal that you like to order?

Simple Meal, but yummy and cheap

Sat, 03 Oct 2009 13:54:39 GMT

I'm not in charge of the grocery buying or the main cook like I was in the apartment, which is the reason I haven't been doing as many food posts. But I prepared a meal the other day that was yummy, healthy, and fit the one dollar meal plan so I thought I'd share.

I bought a small bag of Kroger brand long grain rice (67 cents), which we boiled.

I also bought a single head of broccoli, a small bag of organic carrots (about $1), and small pack of button mushrooms (about $2). We used 4 carrots, the whole head of broccoli, and the whole pack of mushroom. We washed them and sliced the carrots and mushrooms so that they were flat. We then sauteed all the veggies (which means we put a little oil in the pan, turned the temp to 7 / med-high and cooked them just a little bit on each side). They should still be crisp when done.

I found some beef (for braising) on Manager's Special. It was .8 lbs (or 12.8 oz) for $2.12....which means there was 6 servings of meat in the package ( 2 oz. servings). We cooked the meat in the same frying pan we had used for the veggies, not doing anything special to it, just making sure it cooked through. Then we sliced up the meat into smaller bit sized pieces.

Normally I use teriyake glaze (or in a pinch soy sauce) to flavor this kind of meal, but we had neither. So I used what we had, mixing by smell. In the end I came up with a concoction that was about equal parts Worcestershire sauce and apple juice, with some cinnamon powder, some onion powder, and a lot of garlic powder. This was poured over the cooked meat, and actually tasted pretty good.

Everyone fixed their own plate, but it was really just beef and veggies over a bed of rice. There were three of us (me, my brother, and my co-writer), and I took the leftovers home and made another 3 meals off it. So we got about 6 meals out of food which cost me about $6. (Sorry I don't have the exact numbers...receipt is missing, had to go by memory.)

Keeping a Paper trail

Sat, 05 Sep 2009 00:25:53 GMT

Oops, it's been almost a whole month since my last post. I've been busy with my business.

One thing that's really important in business and with personal life is to keep an organized paper trail of your finances and legal documents. Now I don't think it's necessary to keep every receipt forever. If you buy a stick of gum with pocket changes, you probably don't need to worry about keeping your receipt. However anything that might need to be returned, you should hold on to the receipt at least until the return date is past. Anything paid for with a credit card, debit or check, you probably ought to keep your reciepts until you've gotten your bill or statement and checked that they add up. Anything legal or tax related, you probably ought to keep for several years 3-7 depending on the document (and something indefinitely).

It can be a bit of a headache, but it can also save you money in the long run. Not keeping track of certain documents and receipts can really come back to bite you. A good friend of mine recently found out he had his license suspended due to unpaid parking tickets from a year ago. Now, he's pretty sure he paid them, but because he doesn't have a copy of the receipt and didn't write a check (in which case the bank might have a record of it) he has no way to prove he already paid. So now he'll have to pay again, plus additional fees. He could have gotten an additional ticket for driving on a suspended license, but the cop believed him when he said he didn't know (he really didn't).

A filing system doesn't have to be elaborate. While it may make things a lot easier to find if you have it alphabetical or sorted by date and category, you can squeak by with loosely grouped papers. A shoe box for receipts, a folder for bank statements, a drawer for legal documents may not be the ideal option, but it's still a lot better than letting important things get completely lost or thrown out.

I'm a little OCD personally, so I have my papers in two file drawers, one for business and one for personal. My business files are color coded with their contents written on tabs. It only takes a little extra effort to put papers away as they come in, but it makes a WHOLE lot easier to find stuff later.

Side businesses: When is it a business?

Sat, 08 Aug 2009 16:37:58 GMT

While I wouldn't suggest starting your own business on a full time basis to most people. Many of us have some skill that we could use on a part time or occasional basis to bring in a little extra income. Philip has recently started giving voice lessons. Perhaps you make jewelry or can fix bikes. I have a friend up in Kentucky who caters on the side.

Theoretically the IRS wants you to report all income, even from these occasional jobs. However if you make under $400/year, you probably don't need to worry about Self-Employment tax.

According to the IRS on the Instructions for Schedule C: "An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. For example, a sporadic activity or a hobby does not qualify as a business...."

Babysitting is a good example (and a nice way to pick up a little extra). If you babysit only a handful of times over the year then you don't have a business, however if you do it every week as I do, then you probably should be considered a business. (Just to throw another twist on it, if you babysit for a single family, going to their house weekly, then you are probably considered a household employee and not in business for yourself.)

There are some friends and family exclusions, though you need to check the laws carefully. For instance if you do household chores for your grandmother every week, and she gives you $50 for being such a big help to her...that probably doesn't need to be reported. Same if you give your parents $200 in "rent" for living in their spare bedroom, or own your own home and rent out a room to a buddy (as long as you're living in the house)...in most cases that doesn't need to be reported.

Pratically, it's highly unlikely that anyone will come after you for not reporting the $30 you earned babysitting or the scarf you knitted and managed to sell for $20, or even the $150 you managed to bring in unloading all the junk during your last yardsale. However when you exceed $200 in profit and are doing something more than once a month (or on an ongoing basis), you should double check local laws and make sure you're keeping your nose clean. On crafting projects in particular, don't forget to factor in your cost of goods. You may sell a necklace for $60, but if you used $55 worth of materials, you only made a $5 profit.

And there are some advantages to properly reporting additional income, it can help with your credit and apartment applications if you can show more income. And if you're lucky enough to be making enough to worry about Self-Employment taxes it can help by increasing your SS benefits. Also if you think you might want to try a full time business someday, doing something part-time can help you get your feet wet and minimize your risk. Reporting a loss from an attempted business can also save you money on your taxes, but doing this too often will put you on the IRS radar (after 3 years, I think you're automatically reclassified as a hobby).

Note: Double check all this info with the IRS, etc., cause the rules can change from year to year, and your state may have additional requirements.

Questions: Do you do anything on the side to supplement your income? Or have you considered doing so?

Free Stuff - coffee and other drugs

Mon, 27 Jul 2009 13:45:39 GMT

AOL had a decent article on some free stuff available this summer http://www.walletpop.com/economizer/fantastic-freebies-summer-2009?icid=main|htmlws-main|dl3|link3|http%3A%2F%2Fwww.walletpop.com%2Feconomizer%2Ffantastic-freebies-summer-2009

I checked McDonald's site to confirm that they are indeed having free Mocha Mondays until August 3rd (so today and next week). Between 7am and 7pm you can stop in for a free cafe Mocha (if your McDonalds is participating).

The free business card thing has been around for a while. I haven't used it, but I've gotten cards printed that way.

If you recently lost your job Pfizer has a program to help you not lose your medication too: http://www.pfizerhelpfulanswers.com/pages/misc/Default.aspx The site claims to also offer savings for Pfizer medications even if you do still have a job, so it may be worth checking out if you have a prescription.

The AOL article lists additional freebies as well.

Apartment Hunting

Tue, 21 Jul 2009 14:54:58 GMT

I rather enjoy apartment hunting. I like looking, and I'm often offered free snacks while I do so. So I've volunteered to help friends and family look several times over the past two or three years. There are 8 or 9 complexes within walking distance of my neighborhood. Some of them are starting to recognize me.

One thing I've learned is many complexes yo-yo their prices like nobody's business. So while online research can help you get a ball park price, going door to door (or calling) will help you find the most current (and best) price. There can be a huge difference in the price of the same basic floor plan based on some feature which may or may not be important to you like a view, a fireplace, or higher ceilings. There can also be a significant difference from week to week, so if you liked a place but it didn't fit your budget, consider calling back after a week or two.

Like with home buying, it's good to start by making a list of your requirements. What's the max monthly payment you are willing/able to make? What ammenities are important to you? What do you need as far as space and floorplan go? What's your ideal location? What's acceptable, etc.? And what isn't acceptable.

While hunting always ask about deposit amount and any application and move in fees, as well as what utilites, if any, are included. Some times places with lower advertised rents will have more fees and service charges, so you really need to get all your numbers together for comparison to find the best over all price. And whenever possible it's good to get feed back from other people who have lived in a complex. This is something that's easier to find online, since there are lots of apartment hunting/review sites out there. Just keep in mind people are more likely to go out of their way to complain than praise, and changes in management can make a huge difference to changes in service.

There also seems to be a growing trend in the past few years for home owners to rent out a room. I've seen some pretty good deals with fewer fees and restrictions than apartment complexes. I've seen these range from fully furnished bedrooms to full basement apartments with private entrances. As with a roommate, there needs to be a personality and situation fit. Just remember to get these arrangements in writing.

No such things as a one-size-fits all budget

Fri, 10 Jul 2009 17:55:06 GMT

It was another good news, bad news week. I found out my HSA charges a $25 annual fee. After doing some math, it's still probably going to save me a little money in the long-term. I only worry about how much they might raise the fee in the future. So I'll shop around again when renewal time comes up. On the up side, I found some well priced CDs at Deals which made up for it.

I incorporated my business this week...the actual incorporation was fairly simple, but I'm gonna need to work hard to make sure I'm following all the rules and filing the right paperwork, etc.

One thing the process of trying to get the right structure for my business has impressed on me is that there's not one way that's best for every business. (I went through 2 financial advisors before I could get one to understand why S-corp wasn't a better option for my situation). This is true in personal fianance too.

In our book we spend much more time talking about how to think about your budget than giving you fill in the blank forms for setting one up. The reason for that is we want everyone to realize that a budget is a very personal thing. What makes sense for one person doesn't make as much sense for another. Even what makes sense for most people may not makes sense for you personally.

There are certain universal needs like food, water, and shelter, but what form those needs take varies from individual to individual. For instance the nutritional needs of 200lb pro football player are different from those of a 100lb woman with a desk job. Learning to recognize and plan for your personal needs is an important part of budgetting effectively.