A tax savings directive was applied in 2005 in order to provide a proper organization of the market and to reduce the problems regarding the tax evasion.
The stimulus bill is a package for the tax provisions. This is still being debated by the congress but I can tell what the characteristics of it are. Generally, the savings are accounted for by a program which was the most important in Obama’s election campaign. This it is said that it will be up to $1,000 for couples and $500 for individuals per year. This is called the Make Work Pay Credit.
The entire amount of the credit will be available for 2010, but there is a limit for those with the salary of $75,000 or less (for joint returns workers the amount is the double of it: $150,000).
This program is also refundable. What does this mean? Well, it means that even tough a person has a low income as a worker it can still receive it.
The taxpayers with a low and a middle income are protected from the Alternative Minimum Tax by an amendment to the Senate bill. Recently, the low and middle income workers were threatened to pay this tax, although it was intended only for the high income ones.
The amount of money that a family will take will depend on the number of children they have. The new changes to the taxes policies will offer huge tax savings for families with more than three children and a very low income.
For example a family with 5 persons that has the income of $16,200 per year will get $3,500 more as a result of this program. This assumes that each person from the family makes $8,000. If the income will grow up to 32,000 the same family will get an amount of $5,000.
Knowing the current laws regarding things like capital gains tax rates will help you maximize the amount of money you get to keep.
Gold bullion investing is a great way to better diversify your portfolio with a very stable investment that is almost always profitable. There are many different ways that one can invest in gold bullion and depending on the manner in which you choose to invest, you may be able to make some fairly descent profits in the long-term.
This gold bullion can come in many different forms. It can exist in a bar form, as a coin that is printed by the mint or by the refining company, or even as a certificate that represents an actual gold bullion bar which is maintained in a secured precious metals depository.
In the case of the bar and coin form, you can easily purchase these from your local coin collection shop. The will usually be available in 1 and 5 ounce bars, but may also be available in larger sizes too. You will have to pay more per troy ounce then the going spot rate so keep this in mind when making your purchase. When it comes time to sell the bullion, you can actually sell it back to the same exact shop you bought it from; but keep in mind that their buying prices will fall below that of the international spot rate. The same can also be said about investing in gold bullion coins, but these may also be purchased directly from the mint in un-circulated form.
The certificates though, have to be purchased through a broker. These are pieces of paper that represent an actual bar of gold that is held under tight security in a vault somewhere; but it is none the less an actual bar. These certificates are usually purchased at the going market rate and sold at the same amount, but in general you will not find them available in small proportions like what can be found at the local coin shop.
Investing in gold is often done during periods where inflation is thought to rise. Generally it is not for long term investing.
Stamped concrete patios are one of the best outside features to add to your backyard. They are decorative yet offer significant durability compared to patio pavers or a wood patio or deck. One thing many people are concerned with is the cost of a concrete patio. Costs can vary widely based on where you live and how much general construction costs in that area.
The first thing you should do is get numerous quotes from contractors that do stamped concrete patios, prior to setting up the appointment for a quote make sure they actually do stamped concrete patios and not just concrete patios (there is a difference from a cost and contractor standpoint), just about any contractor can do the standard poured patio, but a stamped patio requires someone with experience with that method.
When setting up the appointment request that the contractor bring some pictures of previous stamped concrete jobs as well as an estimated costs for a few different styles/sizes or patios.
They should also come prepared to discuss different stamped concrete designs or patterns with you, you should also have a few design ideas in mind. Make sure the shape of your patio flows with the rest of your landscape.
The color of the stamped concrete patio can have a wide variety of colors, contractors can apply concrete stain, which will stain the concrete just about any color you can imagine.
You also will need to determine if you will need a walkway to your patio, nothing is worse than getting muddy or wet shoes going to your patio. If it does not branch off of existing concrete then you have to determine if you should have a stamped walkway, this will add some extra cost but will pay off in the long run.
Another thing to account for is cover, are you planning on using anything to cover your patio? Maybe an awning, portable shelter or even a fix pavilion type shelter. When taking your shelter into account, think if you will be using a patio heater as not all shelters can have heat producing objects under them.
If you do not have the money to spend you can look into “how to stamp concrete” and attempt to do the project yourself. Different tool rental places will rent you the concrete stamps. The selection of patterns may be limited but it will save you about 50% over the cost of hiring a contractor, thus saving money!
Yes I know I preach avoiding eating out and I also admit it is one of the things I personally need to improve upon(I am adicted to Pizza and I like stopping at Subway once in a while).
Recently my mother was visiting and we decided to go out for chicken wings. I heard of a local place Dwyers Irish Pub in North Tonawanda that has 15 cent wings every day 4-8pm.
For the 3 of us we ordered 30 wings, an order of onion rings and a three sodas for a grand total of $16. Talk about cheap eats under $6 per person. Just for comparrison about a month earlier we had the same food at a different establishment and our bill came to over $35.
Yes we all should avoid eating out as much as possible and cook at home to save money, but if you do feel like getting out for a while you can still eat out and not spend a ton of money.
One of the most frequently asked questions I get is for tips on how to save more money. Tips on saving money is easy to dole out but sometimes a lot harder to follow.
1st Tip To Save Money
The first tip I would give is knowing where your money is going. Initially write down all of your recurring monthly expenses. For example your cell phone bill, your cable bill, electric bill etc…
Then carry a small notepad with you and write down everything you spend money on. Yes even the $1.25 you spent for a bottle of Pepsi.
This will give you a fair idea of where your money is going. My personal money “leaks” are usually buying soda/water and eating out. That is the first place I attacked when I tried cutting back my budget.
This is really an easy way to save money. Do I really need Subway or McDonalds a couple times a week? Heck no!
Saving Money On Groceries – How To Save Money On Your Next Grocery Bill
Another place to examine closely is saving money on groceries.
We tend to spend way too much on groceries and waste a lot of the food we do buy. How about those can goods, the other day I was visiting my father and I found a jar of relish in his pantry that was dated 1993! Now that is antique relish.
A trick I do when grocery shopping is get a smaller shopping cart, I find I spend less money than if I grab a large cart.
Another grocery shopping saving trick I do is do my shopping and before I check out I look at my cart to see what I really need. I then dig for two items I can do without, these items were usually impulse buys!
These are just some of the many ways to save money on food. In future blog posts I will highlight a few more ways.
Saving Money Cooking
There are two main ways to save money cooking.
1) Cook at home more frequently - This is an easy one, stop eating out, you will be more healthy and save a ton of money.
2) Cook smaller portions- How many times do you cook enough food to feed the whole New York Giants football team or like you had to live off of it for a week.
Cut back to smaller portions and you will save a ton of money. Most of us hate leftovers and end up throwing them away anyways.
Saving Money On Cable
Last but not least cut back on the channels. No lie the other day I went over my friends house and he had 200 some channels. I immediately asked him how many he watches on a regular basis and he said 10. Too funny!
Cut back to one of the most basic packages that include most of the channels you watch on a frequent basis. The rest is just filler and clutter.
Also feel out the cable company, call then up and said you are really happy with their service but are thinking of canceling. Let them know company so and so has a similar package for $x cheaper.
The cable business is turning into a commodity with many choices, you have Directv, Dish Network, your local cable provider and even some phone providers are getting into the game now. Make sure your company knows you go with whomever provides the best value.
In conclusion these frugal budgeting tips will help you better manage money, stay within your household budget and become debt free quicker.
Recently a close family member of mine passed away(it has been hard for me to find the motivation to write here, but I am starting to get back to it and figure this article can help me both get back to writing and feel better about accepting money from the death of a family member).
After the normal grief that comes when a family member passes and you find out you are getting a little money often it is easy to make mistakes with how that money is used. You may also feel some guilt a person you loved worked hard for this money and now it is yours.
Personally I paid off my vehicle. I did not want to just go out and blow this money as I think it would have magnified the guilt associated with accepting the money. I believe the family member in question would be happy that I paid of the little debt I do have and used this money wisely.
By using inheritance money wisly and not spending it foolishly you are paying respect to how hard the invidual worked for and saved the money. Sorry this wasn’t a more insightful post or one of my great personal finance articles, but it makes me feel better about accepting the inheritance I just received. Postings should be back on a normal schedule soon.
Everyone is considering the United States and maybe even the world in a recession. Are we in a recession? Well I honestly cannot answer that. One thing I do know is it is harder to get by financially today that it was a year or two ago.
One way to ease the burden on your family is to make a little more money. This article will discuss ways you can make some additional money you can put towards paying down debt or bolstering your emergency fund.
1) Sell some of that useless stuff, you know what I am talking about the items that a clogging up your attic, basement and closets. One man’s clutter is another peron’s treasure. You could sell items on Ebay, Craigslist and even have the old fassion yard/garage sale.
2) Get a second part time job, find a job that you can work part time and has flexible hours for you to work.
3) If you have a hobby see how you can turn that into money. If you have elderly neighbors and you like cooking see if a few days a week you could bring them dinner for a small fee. Make extra of whatever you are making for your family and take that over. Often the elderly person will love the food(if you are a decent cook) and will be happy to pay for the convienence factor.
Since you are just making a little more of what you are already making it doesn’t cost much more and you can make a few extra bucks.
Remember it isn’t how much you make but what you do with what you do make.
A common question right now is should I keep putting money in mutual funds or should I just hoard cash in the bank in either a savings account or CDs? People are looking to protect wealth, much more so than just increase wealth in these crazy times.
As always you have to do what makes you feel comfortable. If having money stashed away in an FDIC insured accounts sounds ideal to you then do it.
If you are nearing retirement or needing any of these funds within the next 5 years you may also want to stick with the savings account/CD route.
Personally I am viewing mutual funds as on sale right now, so I am still putting money in the mutual funds. I am rather young and do not need this money anytime soon so I am ok with the possible loss of some of this money.
There is no wrong way to approach this situation for how to allocate new funds for investing.
Part of personal finance is learning how to save money, one way I have decided to save more money is cutting back on the grocery bills. One of the most expensive items on my bill on a per unit basis is deli lunch meat.
Recently I have been BBQing beef roasts which allows me to get an initial meal, plus about 2 or 3 days lunches. Now I hate eating the same thing so one day I will make a sandwich, the next day I will mix up a little gravy and eat it over gravy and the third day(if any is left) I will make a melt with cheddar cheese and toasted bread.
One other interesting creation is a bbq beef pizza, this is taking two of my favorite foods(bbq beef and pizza) and putting them into one, truly the best of both worlds!
Some of my favorite BBQ items is bbq beef brisket or bbq roast beef. Both are really good and are defined by the spice rubs that are applied to them. Depending on the spice rub recipe you follow the results can be some of the best bbq beef.
Instead of a rub you could use a bbq beef marinade which is a sauce or dressing that the beef will sit in for roughly 4 hours or overnight. One thing to be careful of is to not marinade the beef in a vinegar based marinade for too long else you risk making the beef really tough and hard to eat. After the marinade time you can smoke the beef making smoked bbq beef or you can grill it on your gas or charcoal grill.
The secret to great tasting beef is cooking a beef roast on the BBQ grill.
A great recipe is located at the link above.
As always for the best personal finance articles, visit AutomaticPersonalFinance.com’s homepage.
One common question I get is about Mutual Funds, should you really own them? Should you invest only in stocks and not pay the mutual fun fees? Maybe you should just keep your money in a savings account?
My fiancee before we met would just as soon park her money in a savings account and leave it earn .5%. She was happy her money was safe and secure and she could withdraw it at anytime.
After we dated for a while and I was comfortable giving advice to her I explained to her how inflation was making her actually lose money.
To make matters worse her 401k from work was actually investing in a money market fund paying 1%.
Taking it one step at a time we got the 401k money out of the money market and into Dodge and Cox Stock Fund, HSBC International Fund and Vanguard Index 500 (I know not the best funds going but we had limited choices), although I do currently like Dodge and Cox which recent reopened to new investors and is at a fairly low price per share. This money was not moved in one shot. We moved a little at a time as she became more and more comfortable.
Then we worked on opening up a Roth IRA. For this selection we chose Fairholme, which has a solid track record and should be a good selection.
Next for her emergency fund we got out of the .5% savings account and into an Ing Direct Savings account which paid just a little over 3%.
This has been quite a financial transformation and it still is a work in progress.
If you are interested in individual stocks I will be posting more about stocks I current like, similar to what I did with Harley Davidson stock (HOG).