Summer fun on a budget

As the summer months approach, many may already be contemplating what to do with the little ones while school is out.

We know that being cooped up in the house all day every day probably isn't the best option, but what choices do you have while trying to stick to your budget? Consider these options:

Stay On Budget While Ordering Take-Out

For the last many months I have been suggesting something I never thought I would be suggesting... To just order take-out to stay on budget.

Now before you unsubscribe or block me for thinking I've gone off the deep end, let me explain.

Budgeting Blunders 2

What are some of the biggest mistakes people make when trying to trim their budgets?

Where do I start…

One of the largest mistakes people make, by far, is creating a budget that is too complex.  In an attempt to allocate each penny, which is a good thing, they create a budget that has forty five or more line items, which is not a good thing.

Expenses That Kill Your Finances

What are some expenses you may not realize that can kill your finances? You know, ones that sneak up on you, and keep you living paycheck to paycheck? I was recently asked this question and my recommendations on how to correct the problems. Here’s what I suggested…

Don’t pack on debt with the holiday pounds

An unintended budget killer I come across when working with clients is holiday spending. Not the obvious ones like Christmas and birthday gifts, but things like Thanksgiving and the Fourth of July. Many tend to think of holiday budget expenses in terms of gift giving. You know, a tangible item. The additional food expense that is required at these festive family events is often overlooked.

Budgeting Blunders

Creating a budget is not that difficult. In fact, it can be jotted down on a napkin with a crayon. But sticking to a budget is where the hard work takes place.

Here are a few areas where I see budgets take a nose-dive. Don't let one of these budget blunders allow you to become a victim of a savings snafu.

Keep It Simple

One of the largest mistakes people make, by far, is creating a budget that is too complex.  In an attempt to allocate each penny, which is a good thing, they create a budget that has forty five or more line items, which is not a good thing.

How To Save Money On School Supply Shopping

The days of summer are ticking away. As the last of family vacations are squeezed in, parents everywhere are becoming giddy with anticipation. That is until they remember the back to school supply shopping expense that awaits them right around the corner…

But before you decide to sell plasma every week for a year to help cover the cost, check out these money saving tips. Not only will you save some money, you won’t have to end up quite as holey either...

Wait, you bought what? Where? Taking online shopping to the next level...

Death is an awkward topic for many people. Let’s face it, most of us don’t like to discuss the inevitability of our own demise. It seems like talking about it is avoided almost as much as gluten these days. Yet it is something we will all eventually have to face.  

Timing is key

Expressing your wishes ahead of time relieves a great amount of stress from the family. It goes without saying that discussing funeral plans with someone in good health is much easier than with someone knocking on death’s door.

I remember all too well having the painful conversation with my late husband after he was diagnosed with a terminal and aggressive form of brain cancer. 

As luck would have it, we had the talk just a few months prior when discussing his mother’s future desires. However, the desires one has when they believe they have another forty or fifty years may end up changing when that time-frame decreases to forty or fifty days. This is where some of the confusion, and stress, can begin for the family.

How patiently waiting for your tax refund is better than eating expired meat

A while back I wrote in my blog about watching a few episodes of Extreme Cheapskates (don’t judge…). I also made clear to point out that I could undeniably, one hundred percent, without a doubt guarantee:

• You would not see me at the park picking unknown weeds for a salad;
• I would opt for Quilted Northern toilet paper in my bathrooms rather than cutting up old pieces of cloth, which I would later launder ;
• I would not ask other diners at restaurants if they were finished with their meals, and if I could have their leftovers; nor
• Would I boil a goat’s head for dinner simply because I could snag it for $1.17

I like saving a buck just as much as the next gal, but I have to draw the line somewhere, and that somewhere happens to be right in front of eating goat eyeballs. Let’s face it, the episodes were amusing. Do I think the stories may have been slightly exaggerated for our viewing entertainment? Probably so. Does it really matter all that much? Nope. The lesson I walked away with was the same: patience, in many capacities of life, can be beneficial. In these Cheapskate’s cases, they didn't mind things taking a little extra time as long as it saved a few pennies. So why do we?

Getting a loan on your money

This is particularly true when is comes to tax refunds. The average refund in 2014 was $3,116. Of those receiving refunds, one in ten taxpayers opted for a refund anticipation type loan. And of that ten percentile, half were low income wage earners. Why are the numbers so high for this particular group of individuals? Sadly, they are the ones who typically need the funds the fastest, and usually don’t have a bank account for a direct deposit.

Using a less expensive, do-it-yourself electronic service like TurboTax gives you the option to have your refund either mailed or direct deposited into your bank account. With a check usually taking anywhere from four to six weeks, most of us choose the direct deposit method. This may well decrease the wait time to around two weeks. However, without an account to deposit these funds into, you’re at the mercy of the good ole boys at the postal service.

Paying to speed things up

Most of the larger tax preparation services offer some type of an accelerated refund product, most commonly in the form of a prepaid card. They sweeten the deal by allowing their fees to be deducted from the refund directly so the customer is not on the hook for any up-front, out-of-pocket expenses. Simply sign on the dotted line, and in a no time at all you’ll be on your way to shopping bliss.

The price of impatience

So how much does this impatience cost the taxpayer in the long run? Well first you need to understand what the service they’re offering really is: it’s a loan. A pretty big one at that! Last year Americans paid $1.4 billion in interest for these tax refund loans. Just in case you missed it, that’s billion with a “B”. But let’s not stop there. Add another $500 million in application and processing fees, and jump that number up to almost $2 billion spent on, well, time. Two to four weeks of time to be precise. I guess Benjamin Franklin was right; “Time is money”.

Other options

Walmart is offering an alternative to the refund anticipation loan called Direct2Cash. Participating partners may offer the service, which costs up to $7, at the time of filing, and the provider may opt to not charge a fee at all. Once the customer completes the filing process, they receive a confirmation code via email. They can take that confirmation code to the Walmart Money Center or customer service desk, show proof of identity, and collect cold hard cash on the spot.

What are the benefits of this service versus the traditional paper check, or prepaid card?

• No check to get lost in the mail
• No check cashing fee (a 2% fee on a $3,116 refund is $62.32)
• Issuing of an actual paper check could result in an addition fee; often $20 more
• Prepaid cards can charge fees to access your funds (H&R Block Emerald Card charges a $2.50 per ATM transaction, and a $.95 per online/mobile bill pay transaction). In addition, the ATM owner may also charge a fee.

So what are the downsides to this too good to be true service? Well, for one they limit the amount of the refund to $7,500. However, if your refund is anywhere near that amount you’re giving the government an interest free loan…and we need to talk. Next, if you've filed a joint return both parties will need to be present to collect the funds. Fair enough. Also, I’m sure the participating tax preparation partner will have fees for their services. After all, we can’t expect them to work for free. But since this isn't an refund anticipation loan, you won’t be side-swiped by those fees. Oh, and the confirmation code does have an expiration date, but since you are already paying extra to expedite things this shouldn't be a problem. Right?

Plan for next year

You can always save yourself all of this trouble, and lots of money, by simply waiting for a paper check. Once you receive it you can use it to open a savings account so next year you won’t be in such a rush to get the money you need.

Your tax return is not an annual bonus. It's not "free money" that is worth losing a percentage of just to get a portion of it faster. It's your money that you overpaid the government throughout the year. As long as so many people treat it as that way, these fees will continue to chip away at YOUR hard earned dollars.

How important do you think it is that we stop thinking of a tax return as an annual bonus? Give your opinion in the comment section below.

Disclaimer: In case I haven't made it clear...consult a tax specialist. I'm not one. I don't hold myself out to be one. Don't sue me~ 

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"Image courtesy of ddpavumba, published on 01 August 2013 Stock Image - image ID: 100188090  FreeDigitalPhotos.net"

Give Yourself A Raise, You Deserve It!

After watching a few episodes of Extreme Cheapskates I realized a few things:

•  You probably won't see me at the park picking weeds for a salad;
• I will opt for Quilted Northern in my bathrooms rather than cut up old pieces of cloth;
• I will not ask other diners if they are finished with their meals, and if I can have their leftovers;
• I will not boil a goat head for dinner simply because I could snag if for $1.17.