Tax Time

Phew! My taxes are filed. I'm glad to be done with them for the year. If you haven't filed yours yet, get moving. You only have about a week left!

I filed my taxes using H&R Block online. As many of you know, my lovely Aunt Mary usually files mine for free, but I ran out of time to send them her way this year so I filed online. For those of you accustomed to having financially savvy relatives or friends do your taxes, the experience was little daunting; I wasn't 100 percent certain I did everything right. Still, it was very convenient to file, took less time than making a trip to the nearest tax place and included a computer-generated error checking system, which comforted me a bit. It was difficult, but I only filed a 1040-A. I'm sure if I had more complicated finances, I'd use a professional.

So... now that you're all filed, what are you doing with your double whammy tax return and tax refund this spring? I'm predictably putting into the savings account, which will be a nice bump towards helping me achieve my savings goals this year, but I'm sure others have bigger, more exciting plans (exotic vacations? new refrigerators?). Share them!

Free camera when you sign up for Key Checking

I got a Nano with their last promotion - now you can get what is actually a very nice camera. Click to check it out. You have to open a checking account and:

* Set up Direct Deposit and/or Automated Payments and complete two transactions each of $150 or more by June 1, 2007
* Or, use your new checking account to make 20 transactions - from ATM withdrawals to online banking to writing checks - and be approved for a new Key credit card by June 1, 2007

I'd personally go for the first one as it doesn't involve opening a credit card. I've always had great service from Key and they'd be my primary bank if there were a branch close by. Right now I use them as my bill paying account and things have always gone smoothly.

Debt Consolidation: Easing the Burden

There's no doubt that while having a certain amount of debt is normal and a way of life for most of us who live in North America, some of us have gone over the line where we can pay back what we owe in monthly payments. Before any further discussion of this unfortunate situation can take place, it’s necessary to note the facing a debt burden is something that can happen to anyone. It’s not just the people who don’t know how to manage their money that can get into trouble, but those unfortunate ones among us that are faced with the loss of a job, a family illness, or a host of other unexpected circumstances that find themselves falling behind.

Types of Debt

It matters what kind of debt you have, and as you might have guessed, there are several different kinds although most of the debt that the average person finds themselves facing is what’s called unsecured debt. This includes the one that most of us struggle with in one way or the other—credit card debt. As well there are those unpaid student loans that have a way of gathering interest like a stone rolling down a hill gathers moss, and tax debts as well as medical or legal bills that have gone unpaid.

It happens more and more that people find themselves unable to see over the mountain of debt that they’ve created for themselves. Most of them are good people who would love nothing better than to find a way out and there’s help out there. Debt relief agencies like?Delray Credit Counseling?are experts at studying people’s individual debt circumstances and then helping them find a way out.??

What to Do About It

?The best option is to speak to a professional that can help. A certified debt counselor is the right choice. Professionals like those at http://www.delraycc.com are the people that can listen to your situation and help you find a plan to get you back on track. To start, all you need to do is apply to a local debt consolidation program—they are either usually private or non profit agencies that will supply a free quote on the time and interest that will be required. It’s really quite simple and once a plan is in place, you stand to save a substantial amount of interest on the payments and shorten the time it will take to pay the money back. The debt consolidation company that you select works with your creditors to design a repayment method that will both satisfy them and start you back on the road to financial freedom.

There’s a good reason that this is the best option and it’s simple. By consolidating you debt, you avoid having to claim bankruptcy. While bankruptcy does erase many of your debts, it does not take away some of the ones that can swell to large proportions like child support payments and student loans. As well, once you’ve filed either the Chapter 7 or Chapter 13 versions of bankruptcy, you credit rating is affected for up to ten years and you will find it considerably more difficult to get a personal loan, a mortgage or even a job.???

Avoiding the Vending Machine

Ladies and gents, I'm happy to say that I've received my first reader question to which I can actually provide an answer without having to look a bunch of stuff up or call on a smarty-pants friend/expert resource. Neat-o. (It's the small things that keep me happy, really.)

Anyhoo...this question comes from Sarah over at My Dainty Dollar, who seems like could use our collective support. She's having a hard time living within her means in New York while trying to pursue her passion for performing. She writes:

" I am a slave to the vending machines at work. Every day I get at least one thing. These snacks are never healthy and are 80 cents each. I'm sure over time that's going to add up. I think part of the reason I snack at work is because I'm so bored and my job is unfulfilling. Do you have any tips for staying away from this money taking calorie machine?

Thanks,

Sarah"

OK, I'm going to answer the question about vending machines for now and leave the career management bloggers to advise you about the job. But before I begin dispensing my snacking wisdom, I will say that life in general can seem pretty crappy if you hate your job and don't know what else to do. A lot of people find themselves totally bored out of their mind at work, feel stuck in jobs that are unfulfilling and develop bad habits to compensate. But remember that life is all about decisions, and that you are never a passenger in your own life. You are the driver. You get to choose where you want to go. That is the beauty of life. So, you know, drive. Make a turn or stop and ask for directions or something.

Ugh. This driving analogy's making my head hurt. Onto snacks.

Snacks, indeed... I love them. Every day at like 3:00 p.m., I start thinking about cookies. Big, lovely, sugary, chocolate-chipped yumminess. Or Doritos - a bag of cheesy, crunchy heaven. Or just about anything I ran past on my way to work in the morning or got a whiff of on the bus. Suddenly at 3:00, it's all I can think about.

Luckily, I have the good fortune to work with dietitians, personal trainers and other nutrition specialists at my job. And I have pumped them for information, well, like it's my job. So without further ado, here are my tips for staying away from the vending machine at your office.

1. Plan ahead. My best days are those when I manage to pack sandwich bags or Tupperware with enough snacks to get me through the day. The sandwich bags are key, because in my opinion, they give me the illusion I'm eating something sinful. So into my sandwich bags I pack dried berries, wheat crackers, baby carrots, cut-up red peppers, trail mix, pistachios and other fruits, vegetables and grains to get me through the day. When I feel like I need a bag of Doritos, I go for the crunchy carrots. When I need a cookie, I eat my dried berries.

2. Keep healthy food at your office. For days when you can't plan ahead, keep a few supplies at your office. I usually have an apple or orange, a packet of oatmeal and a can of soup at my desk in case of emergency. Trust me, they come in handy.

3. Buy in bulk. If you can buy granola or dried fruit in bulk, and then bag it, you'll save some cash. I don't really know where to buy healthy versions (without preservatives, sulfates or additives) of this stuff in bulk for cheap, unfortunately, since I don't really have cabinet space. Whole Foods bulk always seems really expensive. So let me know if you find a better alternative. People with cabinet space will thank you.

4. Fill up with fiber. To stay full, keep your energy levels high and help with your daily calorie count, eat foods that are high in fiber. You can find a great list of high-fiber foods here. I also have been known to use a fiber supplement (I like Metamucil Pink Lemonade) to tide me over for days when I'm really hungry.

5. Keep a box of low-sugar, high-fiber cereal at your desk. This is a no-brainer. See the above note. (I like Kashi Good Friends.)

6. Drink decaf green tea. I read the book "Skinny Bitch" and one of the best tips I got was to drink decaf green tea to conquer cravings and provide a non-caffeinated energy boost. I drink Celestial Seasonings because it's typically the only decaf green I can find. It's also yumtastic.

7. Drink enough water. I also read that most of the time when people feel a craving for snacks, they're really dehydrated. So for a while, I required myself to drink a full 12-oz. glass of water before I had any snacks or soda. It was a punishment back then, when I used to drink cans of soda every day. But now, practically the only thing I drink is water.

As a sidenote, have you ever actually tried to drink 64 oz. of water in one day? I have. My stomach was so full that I couldn't fit any snacks in.

8. Go easy on yourself. All food costs money, especially the healthy variety. So don't beat yourself up over spending 80 cents per day on snacks. It's not like you're buying two $5.00 lattes every day. If you're trying to cut costs, take Suze Orman's advice and look for the bigger expenses first (expensive cable, two phone lines, etc.).

And in general, don't be so hard on yourself. You're doing an amazing job by just recognizing where you are in life and trying to do better! Congrats on taking your first steps towards financial fabulousness! Good luck and remember the little people when you get big and famous.

2008 BAH rates will be available next week

I never quite understand why it takes so long for the Basic Allowance for Housing rates to be published. Base pay figures are usually available by October of the preceding year, but BAH tables aren't available until mid-December. It can make it very difficult for incoming families to decide where to live, as they don't know if the BAH will adjust downwards before they arrive or not. It can also complicate the decision whether or not to move into base housing in the face of higher rents. Plus, it's just plain annoying for people who are trying to create a budget for 2008. Why all the suspense? I'm ready to know!

Anyway, a week from now or so, you'll want to head over to the official pentagon site to see if your new housing rates have been published. The site will undoubtedly crash due to high visitor volume (as it happened in 2005 AND 2006), but eventually it will work pretty well. Other sites like about.com also publish tables, but I'm more trusting of the actual Pentagon page.

Lemons, Lemonade, Yadda, Yadda

One ruined batch of tomato sauce = Lemons

Lemon, artichokes, pesto, pepper = Lemonade

There was spot of mold on the jar of the tomato sauce because we waited too long to finish it off. Too bad we didn’t notice it till after we started cooking. (ok, not me. Boyfriend.) With a pound of cooked pasta, I had to find an alternative topping but there was no parmesan cheese in the pantry. What’s a girl to do?

I scrounge the shelves and find a can of artichoke hearts and a lemon. I google “pasta lemon juice artichoke hearts” and find a recipe from Food Network. It looks pretty reasonable, but I can hear boyfriend futzing around in the kitchen. I don’t know where he got pesto from, but hey, that looks good!

I chop up the artichoke hearts up and juice the lemon. I saute them and put them on top of the pasta and pesto. A little too much lemon juice, but at least I had a vegetable for my dinner. I used the whole lemon instead of tossing out the rest of it or saving it and letting that also get moldy. I ground up some black pepper for some bite and tossed it on top. I took it off the heat when the hearts were warmed through but not browning. Not great, but ok. Good enough to eat.

A well-stocked pantry is key to rescuing dinner. I’m just lucky the shelves weren’t emptier else I would have had to order delivery or take out. Despite the rising price of grain products, it shouldn’t be too hard to keep a few jars and cans of this and that around.

The low-gift Christmas

Last year, we cut back dramatically on our Christmas gift-giving and receiving. I never really wrote about how that went, so I thought now might be a good time to do so.

The whole thing started with my husband. Christmas brought up memories of stressful times for him, and what he really wanted out of the season was more time with family. So he brought up the idea of a no-gift Christmas. I wasn't on board with that (because I have gifts as one of my love languages) but I did have fond memories of a Christmas past of a dramatically different type. So we compromised on a low-gift Christmas instead. Here's how it went.

We first talked to his family about stopping our Christmas gift exchange entirely with them, since we thought that they would be receptive to the idea. (They'd mentioned something similar in the past.) Surprisingly, they didn't want to join in, but they did agree not to exchange gifts with us.

Then we talked to my extended family about the same thing, and were surprised a second time because they seemed all for the idea. Reactions ranged from logistical questions, to relief, to thrilled enthusiasm. Coincidentally during this time a family member that we had yet to talk to called ME with the same idea. There were also a very, very few people that we did not talk to about the idea at all, but kept things as they were.

Finally, we agreed that we would still exchange presents among the three of us, but that we would aim for fewer of them. (We ended up cutting back there by about half, maybe more.) Overall it was an enormous reduction in the amount of gifts given and received.

There was some anxiety in talking to people about that stuff — after all, it's not the norm in modern-day America to call up someone and say hey, we wanted to let you know that we won't be giving you Christmas gifts anymore, and we'd like it if you didn't get anything for us either — but I'm very glad that we did it. No one seemed upset, everyone saved time and money, and we all got to relax together more instead of being awash in piles of wrapping paper & boxes that had to be carted around later.

I'll admit it though, it was hard to shake the deeply-ingrained notion that you should not go to a party empty-handed. So uh, we didn't. We brought cookies & candy that we made ourselves. (Which was fun, and resulted in more time together.) I did miss doing so much shopping, but my husband & I went window-shopping together instead, which was actually more satisfying. The worst thing that happened was that unbeknownst to us those who were still doing gift exchanges got together earlier for their exchange. So we missed out on seeing that, and on that time with them. I can understand it though, since it does feel strange to open gifts in front of people when not everyone is getting them.

There were also some unexpected benefits to this. No feeling bad because you knew that time, effort, love and money went into a gift for you that unfortunately wasn't something you wanted or needed. It IS the thought that counts, so why not just have the thought and a hug? It was also really strange (in a good way!) to come home and just be able to go relax instead of dealing with the aftermath of Christmas. Maybe I sound ungrateful here, but I'm not. I'm grateful that we got to enjoy time together that still had a holiday flavor to it, but without the accompanying (and sometimes insidious) stress. And I really enjoyed the gifts we did give and receive. They were more meaningful.

We'll be doing this again, and I imagine it will go even easier this year.

Everyday Finance Portfolio Outperforms Again

For the prior week, the Everyday Finance portfolio outperformed the S&P500 again with a return of 3.6% versus 2.7% for the index. Big gainers for the week were Focus Media (FMCN) with a return of 11.6% and Suncor (SU) with a return of 8%. The full portfolio and respective returns appear in the attached chart.

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The portfolio has now outperformed the index several weeks in a row, including a down market (I had updated mid April; not sure what happened there, so for sake of argument, let's call it now 6 of the past 7 weeks running)

May 11 Post -.2% vs. -1.8% for the S&P500

May 2 Post 2.7% vs. 1.4% for the S&P500

April 26 Post 1.2% vs. 0.8% for the S&P500

April 19 Post 6.2% vs. 5.5% for the S&P500

April 6 Post 6.7% vs. 4% for the S&P500

Future considerations for the portfolio based on recent posts are:

1. Banco de Colombia, which has performed incredibly, running up 35 times over the past few years and is doing well of late too.



2. Vision China, which is shaping up to be the next Focus Media; both growing Chinese advertising stocks.



3. China Finance Online, which happens to be up 20% from last week due to stellar earnings, but one that I've been tracking nonetheless.

www.everydayfinance.blogspot.com

Tuesday, May 20, 2008

Going once..

I posted before that I am looking to see if someone else would like to take over running the Under 30 Honor Roll and Festival of Under 30 Finances as I don't have the time to develop it into something better - if anyone's interested, please let me know!

Monday, May 19, 2008

Military personnel probably not eligible for RALs this tax season

The Military Lending Act came into law on October 1, 2007, with the intent to stop predatory lending to military personnel, their spouses, and their dependents. The primary target of this law was to protect military families from payday lenders and to protect the nation from the risks of servicemembers with high levels of debt and out-of-control financial situations. The law caps interest rates on all short-term loans (defined as loans of less than 91 days in duration) at 36% APR. One provision of this law deals specifically with Refund Anticipation Loans, or RALs, which are short-term income tax refund advances. With RALs, customers of tax preparation companies forfeit a portion of their refund in order to get it in one or two days instead of the 8-15 days normally required with an IRS direct deposit. The interest terms on these loans are usually right at 36% APR, since the major tax preparation companies have known about this impending legislation for awhile. That should make the fit within the parameters of the law, right?

Not necessarily, and if you live in California, the answer is definitely no.

Aside from the APR, these loans have an origination fee which cannot be waived for anyone.* The origination fee (or account creation fee, or check fee, depending on where you go) added to the interest charges on the loan bump the loan's interest charges well above the federal limit of 36% APR. This means the loans are considered too predatory to military families under the Military Lending Act and are therefore unavailable. Therefore, as a servicemember, you need to plan ahead and realize it will be a couple weeks before your refund is available.

Are there any loopholes? Not as far as I know, short of committing perjury. A wife filing separately from her servicemember husband is not eligible for a RAL. A child who has received more than half of his support from a servicemember for the 180 days preceding the loan request is likewise ineligible for a RAL. Major tax preparation chains will have their software programmed to recognize certain EINs as belonging to military divisions and will invalidate the RAL option on that basis alone.

This will probably prove to be one of the more frustrating aspects of the new legislation, as many people who don't bother with payday lenders still request income tax refund anticipation loans. Many may not be pleased with the longer wait time, even if it does save them some money.

*Specifics here might vary by state. If you're interested in one of these loans, contact your tax preparation company of choice to inquire. They will know, and more likely than not, they will not be able to offer this product to any member of the military, their spouse, or their dependents.

Friday, May 16, 2008

Shameless plug - Get a free Fandango movie ticket

Join the Johnnie Walker email club and get a free movie ticket from Fandango! I believe this will only be open until Feb. 15th. If you prefer, you can also join CashDuck and earn a dollar for completing this offer - but a free ticket is pretty good too. =)

Everyday Finance Book Review: MicroTrends

So, I'm wrapping up "Microtrends: The small forces behind tomorrow's big changes". It's authored by Mark Penn, who was the pollster and Clinton advisor that coined the phrase "soccer moms". While I always found that phrase to be rather annoying and cheesy, he has street cred as a guy who can spot trends, articulate them well and get people of influence and power to act on his recommendations.