Beware of those “rapid refund” programs offered at various tax preparers. Sure, it sounds great. What could be better than getting your money FAST?? You may be encouraged to agree to an instant or anticipation option. These are also called RAL’s, or Rapid Anticipation Loans.
Don’t take the bait! This is not your refund—it is a loan. AND, it is a very high interest loan. The average interest rate for 2008 RAL’s was 123%!!!
If you file electronically, even if it is through your tax preparer, the IRS will deposit your refund directly into your bank account within a week or two. That will give you time to plan how to best use your refund. Planning how to spend the money makes good sense!
Showing posts with label Money Management Strategies. Show all posts
Showing posts with label Money Management Strategies. Show all posts
Thursday, April 15, 2010
Monday, April 5, 2010
Seven Steps to Simplify Your Finances
If time is a precious commodity for you, here are eight ideas to save time and reduce the stress and anxiety of managing your financial affairs.
1. Enroll for direct deposit. It eliminates trips to the bank and keeps your money working longer.
2. Sign up for overdraft protection. By linking your checking account to a line of credit you avoid the cost, hassle and embarrassment of a bounced check.
3. Establish an automatic savings plan. Regular, automatic transfers to a savings account will add up.
4. Use electronic bill paying. Eliminate the dreaded task of writing checks.
5. Consolidate your financial relationships. Dealing with one institution makes everything easier.
6. Consider personal finance software. Many programs make handling your finances easier and quicker.
7. Build a safety cushion. Be ready for unexpected expenses or use some extra for a special vacation.
8. Review your investments. Make sure your asset allocation matches your time horizon and risk tolerance.
1. Enroll for direct deposit. It eliminates trips to the bank and keeps your money working longer.
2. Sign up for overdraft protection. By linking your checking account to a line of credit you avoid the cost, hassle and embarrassment of a bounced check.
3. Establish an automatic savings plan. Regular, automatic transfers to a savings account will add up.
4. Use electronic bill paying. Eliminate the dreaded task of writing checks.
5. Consolidate your financial relationships. Dealing with one institution makes everything easier.
6. Consider personal finance software. Many programs make handling your finances easier and quicker.
7. Build a safety cushion. Be ready for unexpected expenses or use some extra for a special vacation.
8. Review your investments. Make sure your asset allocation matches your time horizon and risk tolerance.
Monday, March 29, 2010
Make Use of Tax-Credit House Repairs
Thinking about making some home improvements? Don’t let federal stimulus money go to waste! Until December 31, 2010, homeowners can take advantage of a national tax credit of 30 percent of the cost, up to $1,500, on a variety of energy-saving products. Insulation, windows and doors, roofing, heating, ventilating and air-conditioning systems, tankless water heaters and alternative energy programs, such as solar panels and wind turbines, are covered. Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010. For more information, www.energystar.gov has some useful information. Ask your tax professional for details on what specific improvements may qualify.
Saturday, March 27, 2010
Get Financially Fit
“Strengthening the health of one’s financial management is a resolution that would benefit all Americans,” says Ted Beck, president and CEO of the National Endowment for Financial Education® (NEFE®). “The greatest gift you can give your family is financial stability.
Especially in a recession, it’s important to set a plan in motion to get out of debt and prepare for the uncertainties of the future.” Beck suggests these five basic tips to shape up your finances:1. Know where your money goes.2. Get control of debt3. Start saving today.4. Protect your assets.5. Organize your financial records.
This also is a good time to review your credit report. You can order free a detailed summary from the three major credit reporting agencies—Equifax, Experian and TransUnion—by visiting www.annualcreditreport.com or by calling (877)322-8228.
Source: NEFE
Especially in a recession, it’s important to set a plan in motion to get out of debt and prepare for the uncertainties of the future.” Beck suggests these five basic tips to shape up your finances:1. Know where your money goes.2. Get control of debt3. Start saving today.4. Protect your assets.5. Organize your financial records.
This also is a good time to review your credit report. You can order free a detailed summary from the three major credit reporting agencies—Equifax, Experian and TransUnion—by visiting www.annualcreditreport.com or by calling (877)322-8228.
Source: NEFE
Friday, February 26, 2010
Money Management in Tough Times
The gloomy forecast for the economy has many people asking questions about what actions they might take to help improve their personal or family situations. Money Management in Tough Times is a new focus for eXtension which can help. At www.extension.org/Financial_Crisis you will find resources are organized into five categories: business, families, farms & ranches, individuals, and youth. The articles and reports found in these categories are the "best of the best" resources available on finances today.
Another great resource is the Wyoming Saves program. Accept the challenge to increase your savings and/or decrease your debt by REGISTERING for Wyoming Saves now. You can also follow Wyoming Saves on facebook at http://www.facebook.com/WyomingSaves.
Wyoming Saves is a program of the University of Wyoming Cooperative Extension Service.
Another great resource is the Wyoming Saves program. Accept the challenge to increase your savings and/or decrease your debt by REGISTERING for Wyoming Saves now. You can also follow Wyoming Saves on facebook at http://www.facebook.com/WyomingSaves.
Wyoming Saves is a program of the University of Wyoming Cooperative Extension Service.
Wednesday, February 17, 2010
Turn Your Dreams into Reality!
Do you dream of vacationing in the Caribbean? Or retiring in a warm location and spending your days golfing? What about dreams of sending your kids to college or driving the sweet ride you’ve seen advertised recently? By turning your dreams into SMART Goals you can turn your dreams into reality.
The SMART in “SMART Goals” is an acronym for Specific, Measurable, Attainable, Relevant, and Time-bound. People who make their goals SMART are more likely to achieve them.
A specific goal is one that is clear and easy to describe. “I want a nice house” is not very specific; however, “I want a house with three bedrooms, 2 baths, and a 2 car garage” is specific.
A measurable goal can be quantified. Being able to quantify your goal ensures that you can track your progress and will know when you have achieved it. A common way of making your goal measurable is to specify a dollar amount, such as “saving $5,000 toward a car down payment.”
An attainable goal is one that you can achieve. It may not be an easy goal to reach but it should be doable. For most of us “riding the space shuttle” would not be very attainable, however, “spending a week in Mexico” is probably doable with a bit of work and planning.
A relevant goal is one that has meaning for you and your life. It reflects who you are and what you value. A goal to remodel the kitchen would not be very relevant for someone who neither cooks nor entertains but it would be relevant for someone who values these activities.
A time-based goal is one that has a specific end date. Without a specific end date, it can be too easy to delay making progress toward achieving your goal. By setting a definite end date you can determine if you are on track to achieve your goal. If not you can make the appropriate changes to your actions or even to the goal itself.
Having turned your dream into a SMART Goal, you can now determine what steps are needed to accomplish your goal. If your goal involves having a set amount of money you will need to divide the amount of money you will need by the number of months until you will need the money to determine how much you will need to save each month. For example, if you will need $2,400 in 2 years for your goal, you will need to save $100 a month.
To help you achieve your goals, be sure and sign up for Wyoming Saves. Wyoming Saves is an educational program that is open to anyone interested in building wealth and reducing debt. The program runs from March 1st to May 31st. Register here for Wyoming Saves.
The SMART in “SMART Goals” is an acronym for Specific, Measurable, Attainable, Relevant, and Time-bound. People who make their goals SMART are more likely to achieve them.
A specific goal is one that is clear and easy to describe. “I want a nice house” is not very specific; however, “I want a house with three bedrooms, 2 baths, and a 2 car garage” is specific.
A measurable goal can be quantified. Being able to quantify your goal ensures that you can track your progress and will know when you have achieved it. A common way of making your goal measurable is to specify a dollar amount, such as “saving $5,000 toward a car down payment.”
An attainable goal is one that you can achieve. It may not be an easy goal to reach but it should be doable. For most of us “riding the space shuttle” would not be very attainable, however, “spending a week in Mexico” is probably doable with a bit of work and planning.
A relevant goal is one that has meaning for you and your life. It reflects who you are and what you value. A goal to remodel the kitchen would not be very relevant for someone who neither cooks nor entertains but it would be relevant for someone who values these activities.
A time-based goal is one that has a specific end date. Without a specific end date, it can be too easy to delay making progress toward achieving your goal. By setting a definite end date you can determine if you are on track to achieve your goal. If not you can make the appropriate changes to your actions or even to the goal itself.
Having turned your dream into a SMART Goal, you can now determine what steps are needed to accomplish your goal. If your goal involves having a set amount of money you will need to divide the amount of money you will need by the number of months until you will need the money to determine how much you will need to save each month. For example, if you will need $2,400 in 2 years for your goal, you will need to save $100 a month.
To help you achieve your goals, be sure and sign up for Wyoming Saves. Wyoming Saves is an educational program that is open to anyone interested in building wealth and reducing debt. The program runs from March 1st to May 31st. Register here for Wyoming Saves.
Monday, January 25, 2010
How The Web is Transforming Personal Finance
I just read the article "How The Web is Transforming Personal Finance" and found it very interesting. I'm not sure how thorough the authors have been in reviewing the various online money management services. It is quite possible the authors are developing their recommendations based upon who is willing to "sponsor" the article series. That being the case, the article should at least get you started in your research of which online money management service might be right for you. I know I am going to look into a few that were mentioned in the article and do a search to see what else is available that wasn't mentioned.
Julie
Julie
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