I’ve been arguing that if the government cannot control spending there are some serious implications that you and I need to prepare for. In my last blog I outlined precautionary steps to take if the government continues on this path. In this blog I’ll discuss what NOT to do so that you can avoid a similar fate. Continue reading “Money Management: How NOT to Spend Your Money”
So in my last blog I outlined the real danger of government spending without a balanced budget. If the government continues to borrow and spend, borrow and spend, borrow and spend, pretty soon Uncle Sam won’t be able to borrow any more. If that happens – if foreign governments don’t lend the U.S. money, if investors don’t buy U.S. Government Bonds – how will the government pay for its expenditures? This is a difficult question, and one we hope we never have to answer, but rather than cross our fingers and put our heads in the sand, we need to face this potential reality head on. We know that the government’s going to have to do something, so here’s what you can do to be prepared: Continue reading “Risk of Failure to Balance Budget”
While on vacation recently I had an opportunity to do something I don’t often find the time to do: think. I had the chance to read the morning paper and scan a few of the opted articles that had differing viewpoints on a topic that seems to be getting a lot of attention these days: our nation’s debt and the importance of balancing the budget. Now when I was in college, I had a roommate explain that the national debt really wasn’t that big of a deal because we essentially owed the money to ourselves, so who cares? Well, I’m not really sure that’s how it works, so I wanted to spell out why the national debt and having a balance budget ARE BIG DEALS when it comes to our economy as a whole. Continue reading “A Balanced Budget is a BIG Deal”
In my last blog I told you about my neighbors Mr. and Mrs. P. Fortunately for Mrs. P, her next door neighbor is a financial planner, so I’m able to help her during this time of transition. That being said, there are a few things Mr. P could have done to help make his wife’s situation a little easier. Here are some things you can do to help your loved ones cope with your loss: Continue reading “Important Steps to Take When Preparing Your Estate Plan”
My neighbor Mr. P passed away several weeks ago, and now I find myself in the difficult position of having to help Mrs. P sort through all the financial details. Mr. P took care of all the financial decisions in their household, so you can imagine how upset and confused Mrs. P is right now. While there are many important financial decisions that need to be made, very few need to be made right away. Here are some steps to take following the loss of a loved one: Continue reading “7 Steps to Follow after Losing a Loved One”
In case you haven’t heard, the 2010 tax filing day has been extended until Monday, April 18, 2011. That means taxpayers get one extra weekend to find as many credits and deductions as they can before sending their returns off to the IRS. Now it’s not often that waiting until the last minute pays off, but consider these tax tips a reward for your procrastination: Continue reading “Last Minute Tax Tips for Last Minute Filers”
It was only after my son Ethan got home from school and played an April Fools’ Day joke on me that I even realized it was April. In the spirit of laughing at ourselves, I thought it would be fun to do my best David Letterman impression by offering what I consider to be the top ten most “foolish” financial decisions we make: Continue reading “Top Ten Most “Foolish” Financial Decisions”
So what does college planning look like in the real world? That’s an excellent question, and since I don’t have a child in college yet, let me share with you what I hope it looks like:
My daughter Rachel is 12-years old. She will be attending the University of North Carolina (she doesn’t know that yet, but she will—Go Tarheels!). This year the cost to attend was about $6,000, so her mother and I will plan on paying for her tuition; she’ll be on her own for books, fees, and other expenses. Her grandpa has already contributed $6,000 toward his granddaughter’s education, so we figure we’ll need to save another $280 a month to meet our goal. Continue reading “Ten Steps to Funding a College Education”
Today’s blog is the last in a series addressing the different pieces of the college planning puzzle. Last week we looked at financial aid and basically determined that no matter how much or how little we save for college, financial aid (primarily in the form of loans) will help us make up the difference. That should provide some relief, since we would like to think that our children can go to whatever school they want to no matter how expensive. At the same time the idea of our kids (and us) being saddled with debt right out of college doesn’t always sit well with us. So how do we reduce our dependency on financial aid when the amount saved is not enough? This will probably come as a shock to you (and yes, I’m being facetious), but parents and students are expected to use some of their current income to help pay for college. Continue reading “College Planning: The Tax Benefits of Education”
In last week’s blog entry I discussed some of the tax-free ways to save for education. If you are able to save enough to fully pay for a child’s education then I tip my cap to you because that is an impressive feat. Unfortunately, for most parents the amount they are able to save will only cover a portion (and in my case a small portion) of the full cost of education, so in this week’s blog entry I’ll focus on the next pillar of college planning known as (imagine the thunderous voice of Zeus as you read) FINANCIAL AID. Continue reading “Financial Planning: Paying for College”
It’s that time of year again. No, I’m not talking about taxes, spring cleaning, or even baseball (although it is that time of year as well). I’m talking about March Madness, and as I watch those amazing kids compete for college basketball’s ultimate prize, I’m reminded of just how unlikely it is my own kids will be getting a basketball scholarship anytime soon. Continue reading “Financial Planning: Saving for College”
When was the last time someone asked you if you thought they were saving too much? Someone recently asked me this question and at first I was taken aback. How is it that anyone could have money to save, let alone enough to wonder if they were saving too much? Didn’t we just go through a recession? Aren’t we all just swimming in debt, living paycheck to paycheck, desperately trying to make ends meet? Continue reading “Are You Saving Too Much?”
Have you ever found yourself at the end of the week with a little extra cash lying around? (I know, it doesn’t happen that often, but when it does, what exactly do you do with it?) For many, they just simply find something to spend it on, and who wouldn’t. I mean after all, you’ve worked hard all week to earn it, so why not enjoy it. Well, I can’t argue with that, but there may be another reason why you’re not sure what to do with it: you lack financial goals. Continue reading “Cash Management: How to Manage the Extra Money in Your Pocket”
I’m not sure who said it, but I can bet you they were trying to sell you something. If you’ve read any of my previous blogs (and if you haven’t, why not?) then you know I have a tendency to prefer paying more for higher quality stuff that should last longer rather than buying cheaper stuff that will likely break down sooner and only end up having to be replaced more frequently. Well, I’ve since modified my position on the issue. Here’s what happened: Continue reading “Budgeting: Is that Laptop Really Worth $1500?”
In May, my wife and I will celebrate our 16th wedding anniversary. Would you believe that in all those years we’ve never fought about money? (If you believe that I’ve got some ocean-front property I just can’t wait to sell you.) The truth is when we were first married we use to fight about money all the time. It’s no surprise that financial stress is one of the biggest contributors to broken marriages, especially for newlyweds, so how is it that Susan and I have managed to stay together for so long? Over the years we have learned how to resolve our financial conflicts by avoiding some of the common pitfalls that each of us faces. I know they’re common because in my line of work I hear people say them everyday. So in the spirit of Valentine’s Day, I’d like to share with you some of these pitfalls, along with ideas on how to avoid them, or at least understand them so that you can turn some of those nasty arguments over money into healthy discussions about your finances. Continue reading “How to Have Financial Harmony in Your Marriage”
It doesn’t snow very often in North Carolina, but when it does, you can hear the children across the playground shouting – SNOW DAY!!!
Snow days are my kid’s greatest day of the week, but for Susan and I, not so much. I love to watch the snow fall, and fortunately for me, I haven’t had to travel much, so I look forward to playing in the white stuff just as much as the kids do, but when they are ready to play, I’m sitting at my desk – no snow days for me *drat.* Continue reading “Financial Planning: Leave Room in Your Budget for a Snow Day!”
As I stepped out of the car and waved goodbye to my friend, I noticed the front right tire of her car was almost completely bald. I looked at her and said “Danielle, how can you drive on this?” Either she suffers from the Zoolander-esque inability to turn left, or she simply neglects to take care of her tires (and by the looks of things, the rest of the car as well). I didn’t have time to lecture her on the dangers of driving on a tire with no tread, but I did tell her to go out and buy new tires right away, and was able to explain to her that if she rotated them every 6,000 miles, she could probably extend the life of them, even beyond their expressed mileage rating. Continue reading “Auto Expenses: Tips on How to Maintain Your Vehicle”
For those of you that already know me, you know I’m a pretty frugal guy. But the story I’m about to tell you is going to make you cringe.
I’ve told you before about how I like to use Hotwire.com for booking hotel rooms. I get to stay at nice places for much less than retail. However, I don’t get to choose the location. You also know I like to pay cash for things, so I take out what I think I need, and only spend what I have. Continue reading “Cash Management: Adventures in Being Frugal”
Have you heard about these things called penny auctions? Penny auctions tout how you can “win” large ticket items—like a laptop computer or flat-screen TV—at auction for up to 95% less than what you would pay retail. Now if you know me you already you know how I hate paying retail for anything, so if something advertises offering retail products for less than retail costs, you know I’m game. You also know I’m not going to do anything unless I completely understand it, so let me share a little bit about penny auctions with you. Continue reading “Financial Education: How Much Do Penny Auctions Really Cost?”
Conventional wisdom suggests that buying things together in a prearranged package is better than buying items separately. For example, if I’m hosting a super bowl party at my house, I could buy individual slices of meat, cheese, and vegetables, or I could just pick up a party tray.
If I’m tuning up my car I could buy the spark plugs, air filter, motor oil and everything else, or simply look for a tune-up kit. The upside to the prearranged package is you generally get everything you need in a cost-effective way. On the downside, Continue reading “Are Bundled Packages Really a Money Saver?”
