Author Archives: admin

Starting With a Simple Family Budget for the Month of October

Posted on by

Many people have a difficult time dealing with a budget for the whole tax year. If they do have the determination to prepare an annual budget, ultimately many get bogged down and do not follow through and analize the financial information it provides for the family.

If you do not have a budget, why not prepare a budget for the month of October since September is already underway.

To prepare a simple monthly budget for October, begin with listing the monthly amount of each individual income item and total the income. Then list all the expense categories you can think of that you spend your income on for the month.

Expense items might be:
House Payment (Usually includes property taxes and insurance)
Rent
Utilities(gas, and water)
Car Payment or Payments
Credit Card Payments by card
Gasoline Expense
Car Maintenance Expsnse
Pet Care Expenses
Child Care (If wife works)
Health Insurance
Auto Insurance
Food
Eating Out
Entertainment
Computer Expenses (Ink, Paper, etc)
Internet(WIFI)
TV
Personal Expense Items (by person in the family separate line items)
Tithing
Lawn Care (Water, mowing)
Home Repairs
Hair Care
Savings

Total all of the Expenses

Subtract the Total Expenses from the Total Income

If the income exceeds the budgeted expenses then make a decision as to what expense items might need to be increased or put the difference in savings. If the total expenses exceed the total income then adjustments will need to made in some of the expense items otherwise you will not have enough income to pay all of the items.

The first week of November enter the budget on an Excel worksheet in columns and put Oct. Budget as the heading. The next column title “Actual”, enter the amounts you spent for each category and enter the actual income figures for the month. Then Subtract the line items in the actual column from the budget column and see how you did.

Budgets are not cast in stone they can be adjusted and amended until they work for you.

Good luck with a monthly budget.

Property and pet owners are constantly in need of house sitters and pet sitters. Click on this link to see how this might be an opportunity for you to live economically or to hire someone to meet your house sitting or pet sitting needs.

Click on this link Click Here!

Saving CORA Had Great Effect On My Personal Budget

Posted on by

We live in Colorado at 10,000 feet elevation looking at 13,000 and 14,000 feet mountain peaks from our deck. We purchased the lot that contained an Everest 5th Wheel that had cost the seller $66,000. The previous owner had only used the trailer six weeks in five years so the 5th wheel was like new inside and outside. The 5th Wheel had been delivered from the dealer in Denver to the lot and never moved. The lot was .25 acre tree covered lot with several different kinds of pine and spruce trees.

After we moved to this mountain retreat for the summer six years ago, we had a huge deck constructed as a launching pad to watch the game and mountain peaks. The deck went the full length of the 39′ trailer and around the front that had a large picture window with view into the forest behind our place. The land behind our place is Bureau of Land Management land that cannot be built on, so our view is preserved. We also had two large sheds, built by an elderly man, that live 50 mile from our place. He built the sheds and delivered them and set them in place. They were 10X12 feet with an additional four foot porch. One shed was for my wife and the other one was for me. She named mine “The Doghouse”. One very large pine tree is located just in front of the slide out on the door side. We had a bench that seats eight people built around the tree. They estimate that pine tree is 150 years old.

We have a cinder brick and metal fire pit for campfires when they are permitted. About half of the summers there are fire bans due to the dry conditions and the danger of setting a forest fire. We also have a Rockwood popup camper with two queen beds behind our place as a guest accomodation. There are three service centers on the level we live on that have six bathrooms for men, six bathrooms for women,sinks and showers. Also we get drinking water from a hydrant outside the service center. There is also a dump for the blueboys that contain waste from the campers and trailers by each service center.

Two miles below our high mountain community location is a clubhouse, a large swimming pool, tennis court , shuffle board court , volleyball, and cow pasture golf course.

We come to our place in Colorado about the first of June and leave in mid October when the temperature is again hitting freezing.

WE LOVE OUR PLACE IN CORA AND LOOK FORWARD TO EACH DAY IN THIS BEAUTIFUL MOUNTAIN RETREAT GOD HAS CREATED.

Wednesday June 27th a column of smoke could be seen about two miles to the west of CORA. Several people ask to be on our deck to see the smoke and fire that began showing amid the smoke. Later that day the camp facilities manager came by and said if that fire comes over that ridge we are going to ask you to evacuate. The next morning the facilities manager and camp hosts reported the fire had increased from 35 acres to 65 acres and they had 66 firemen and two helicopters help put it out. That night they reported the fire was under control and had sent the helicopters back to their base 30 miles away by 5:30 to save money, they only kept 16 firefighters on the fire that night. The next morning high winds whipped the fire into a totally uncontrollable forest fire that had spread to hundreds of acres. There was dry undercover and grass and lots of pine trees. When burning trees the smoke was black and gray and white when it raced across meadows. It appeared that no one was fighting the fire and it was threatening to cross the ridge that would threaten CORA. There are 500 properties up here at our level and 300 properties on the lower level near U.S. Highway 285. U.S. Highway 285 is a very busy corridor that people from Denver jam each weekend in their pursuit to the mountains. The county and the firefighting people admitted they had no control. The Forest Service took over control of the “Weston Pass Fire” as it was named. They brought in over 600 firefighters, used several helicopters with slings to drop water obtained from a nearby pond and Antero Reservoir. A DC-10 plane entered the effort dropping slurry and designated areas. The fire raged on and on Saturday it crossed the ridge and was moving towards CORA.

On Saturday they had a voluntary evacuation of CORA, we left at that time. We were flying out to Nashville on July 1st to celebrate my birthday at a family reunion in Nashville at my son’s home. On Sunday the fire had advanced so far that it was threatening CORA. The county issued a mandetory evacuation and had the sheriff control the gates so no one could come in or out. Even the camp managers, camp hosts, facility director, and board members were forced to leave.

Since the fire fighters and the U.S. Forest Service people come from all over the United States , they were unfamiliar with the area where they are fighting the fires.

FORTUNATELY RAFAEL ESPARZA, WHO WAS THE PREVIOUS CORA MANAGER, AND OWNED A RANCH ACROSS FROM CORA ON U.S. HWY 285, DECIDED TO GO TO THE GATE AND SEE WHAT WAS GOING ON. HE MET THE FOREST SERVICE PERSON RESPONSIBLE FOR THE FIRE MANAGEMENT AT THE GATE AND INTRODUCED HIMSELF. THE FIRE MANAGER EXPRESSED HIS CONFIDENCE THAT THEY COULD SAVE THE AREA SURROUNDING WHERE THEY WERE STANDING BECAUSE THERE WAS NOT A LOT OF TREES , HE FELT THEY COULD SAVE THE 300 TRAILERS , PARK MODELS, MOTOR HOMES, THE CLUBHOUSE, THE POOL AND THE CORRAL BUILDINGS AND GARAGES. RAFAEL ASK WHAT ABOUT THE 500 HUNDRED PROPERTIES ON TOP OF THAT MOUNTAIN? THE FIRE MANAGER WAS SHOCKED TO HEAR THERE WAS FIVE HUNDRED PROPERTIES ON THE TREE LADEN MOUNTAIN ABOVE THE AREA THEY WERE PROTECTING. RAFAEL TOOK THE FIRE MANAGER ON A GUIDED TOUR OF THE UPPER LEVEL TWO MILES ABOVE THE AREA THE FIRE FIGHTERS WERE ENTRENCHED. THE FIRE MANAGER WAS SHOCKED AND NOW WAS REALLY CONCERNED THAT THEY PROBABLY WOULD NOT BE ABLE TO PROTECT THIS AREA WITHOUT A LOT MORE RESOURCES.”

To the fire manager’s credit he developed a plan with big tubs and PVC piping and sprinkler heads and had his men start constructing a huge sprinkler system on top of the mountain where we live. He called in more helicopters and they had many slurry drops over the next few days. Even after a week the fire was still out of control with only a small percentage of control. The winds shifted away from CORA some days and towards CORA a couple of days. It was touch and go.

While in Nashville , my wife and I were constantly looking at our tablets, and phones to get the fire reports. We had a report from friends that own property in CORA, they were sure it was going to be destroyed at one point and we were in the mode, where do we go without a home? We purchased a home in Casa Grande, Arizona in May, so we could go there. We stayed at my son’s near Colorado Springs while we were waiting to see when we would be allowed to return to our property. The fire continued and each day the firefighters reported on the wind directions and speed and it did not sound good for CORA. Then about the 10th day, we had more encouraging reports, there were lots of hot spots in the area near CORA but the fire had moved to the west over the top of Buffalo Peak that we see from our deck. The fire manager warned that the wind could change the situation. On the 12th day the first rain hit the area but it was only a half inch rain. Also an unheard of tornado hit within a half mile of CORA and uprooted some trees. Tornados just don’t usually occur at higher elevations.

You know when ask to evacuate and take only what you treasure most. We were at a loss as to what was important to us? We took a newer TV , our computers , my wife’s sewing machine, two suitcases full of clothes. We did not take any coats since we had just come from Arizona, we forgot it is cold in Colorado at night. We took the box with our important papers. We had property insurance. But the lot would probably drop in value dramatically if the trees had burned, so the lot would have been near worthless.

July 12th, Fourteen days after the fire began, the camp manager reported that the CORA owners could return to their property at 7 P.M. that night. All of the owners expressed their appreciation for the firefighters and camp management in saving CORA. THANK GOD FOR FIREFIGHTERS, LAW ENFORCEMENT, AND CAMP MANAGEMENT! WE ARE NOW BACK IN OUR HOME IN CORA. THE VIEW IS DIFFERENT, AN AREA ONLY A HALF MILE AWAY IS BURNED AND THE MOUNTAINS WE VIEW LOOK LIKE A QUILT PATTERN RATHER THAN A GREEN TREE LADEN MOUNTAIN. AND SINCE OUR RETURN WE HAVE HAD SEVERAL RAIN AND THUNDER STORMS. TWO NIGHTS AGO A ONE INCH RAIN STORM OCCURRED AND FLOODED SOME PROPERTIES ON THE LOWER LEVEL AND BROUGHT BLACK FOREST FIRE DEBRI TO THE AREA AROUND THE CLUBHOUSE. IT ALSO WASHED OUT A CULVERT ON U.S. 285 AND AGAIN IT IS CLOSED FOR THREE DAYS TO REPLACE THE CULVERT. OUR CAMP HOST SAID, “FOREST FIRE, EVACUATION, TORNADO, FLOOD , WHAT NEXT?”

Sure we were insured , but the loss of personal items and many necessities would result in a great loss to most of the occupants of CORA. Thanks to the firefighters that loss did not occur.

Summer is here and a lot of people are taking extended vacations that may occur now, through the summer, and into the fall. Many need house sitters and or pet sitters. Click on this link to see how this might be an opportunity for you to live economically or to hire someone to meet your house sitting or pet sitting needs.

Click on this link Click Here!

Your Family Budget Considering The 2018 Standard Deduction And Tax Rates

Posted on by

The new standard deduction and tax rates go in effect for 2018. The tables are as follows:

Single 2018 Tax Brackets
Taxable Income
Tax Bracket:
$0-$9,525 10%
$9,526-$38,700 12%
$38,701-$82,500 22%
$82,501-$157,500 24%
$157,501-$200,000 32%
$200,001-$500,000 35%
$500,001+ 37%

Married Filing Jointly 2018 Tax Brackets
Taxable Income
Tax Bracket:
$0-$19,050 10%
$19,051-$77,400 12%
$77,401-$165,000 22%
$165,001-$315,000 24%
$315,001-$400,000 32%
$400,001-$600,000 35%
$600,001+ 37%

Head of Household 2018 Tax Brackets
Taxable Income
Tax Bracket:
$0-$13,600 10%
$13,601-$51,800 12%
$51,801-$82,500 22%
$82,501-$157,500 24%
$157,501-$200,000 32%
$200,001-$500,000 35%
$500,001+ 37%

Married Filing Separately 2018 Tax Brackets
Taxable Income
Marginal Tax Rate:
$0-$9,525 10%
$9,526-$38,700 12%
$38,701-$82,500 22%
$82,501-$157,500 24%
$157,501-$200,000 32%
$200,001-$300,000 35%
$300,001+ 37%

Standard Deduction Amounts
The 2018 standard deduction amounts will be as follows:

Single or married filing separately: $12,000
Married filing jointly: $24,000
Head of household: $18,000
The additional standard deduction for people who have reached age 65 (or who are blind) is $1,300 for each married taxpayer or $1,600 for unmarried taxpayers.

Personal exemptions and dependent exemptions will no longer exist.

Child Tax Credit
The child tax credit is increased from $1,000 per child to $2,000 per child, with the phaseout range not beginning until $200,000 of modified adjusted gross income ($400,000 if married filing jointly). Up to $1,400 of the credit (per child) will be refundable.

Changes to Itemized Deductions
Firstly, with regard to mortgages and home equity loans, only interest related to “acquisition indebtedness” will be deductible. This includes debt related to “acquiring, constructing, or substantially improving” your qualified residence. In other words, the interest on many home equity loans will no longer be deductible.

In addition, for “acquisition indebtedness” taken out 12/16/2017 or later, only interest on the first $750,000 of the balance ($375,000 if married filing separately) will be deductible. For loans taken out on or before 12/15/2017, the old $1,000,000 limit ($500,000 if married filing separately) will apply.

The deduction for state/local/foreign property taxes and income taxes remains in place, as well as the option to deduct state and local sales taxes instead of state and local income taxes in any year. The total deduction, however, will be limited to $10,000 per year ($5,000 if married filing separately).

The deduction for medical expenses will still exist. And for 2017 and 2018, the threshold for deductibility will be 7.5% of adjusted gross income rather than 10%.

Personal casualty losses (e.g., losses due to fire, storm, theft) will no longer be deductible unless they are attributed to a federally declared disaster.

Capital Gains and Qualified Dividends
Long-term capital gains and qualified dividends will still have 0%, 15%, and 20% tax rates. The income thresholds separating those different tax rates, however, have changed. For 2018, long-term capital gains and qualified dividends will face the following tax rates:

0% tax rate if they fall below $77,200 of taxable income if married filing jointly, $51,700 if head of household, or $38,600 if filing as single or married filing separately.
15% tax rate if they fall above the 0% threshold but below $479,000 if married filing jointly, $452,400 if head of household, $425,800 if single, or $239,500 if married filing separately.
20% tax rate if they fall above the 15% threshold.
Note that threshold for the top of the 0% tax rate is close to but not the same as the top of the 12% tax bracket.

After reviewing the changes apply the new standard deduction and the change in amount and the new tax brackets to your personal case and see if you will be better off or if you need to pay an estimated tax to avoid interest and a penalty at tax time.

Spring is here and a lot of people are beginning their extended vacations that may occur now, through the summer, and into the fall. Many need house sitters and or pet sitters. Click on this link to see how this might be an opportunity for you to live economically or to hire someone to meet your house sitting or pet sitting needs.

Click on this link Click Here!

Your Family Budget For Your Living Quarters

Posted on by

Many young families cannot save enough to qualify for purchasing a house. Even if a family has enough in funds to make a 20% down payment so they will not have to purchase mortgage insurance, the closing costs are so high that it is another barrier to purchasing a home. Consequently they rent a house, a condo , an apartment , or possibly a room. Renting is not all bad if the rates are not too high.

Things people have to consider in purchasing a home are the property taxes, the interest on the loan, the homeowners insurance, and the deposits for the utility companies. Included in the closing cost may be “points” which is a method to adjust the interest rate to the current interest rate a mortgage company is willing give to the borrower. Points can increase the closing costs significantly. The cost of the property taxes is allocated over a twelve month period for the upcoming year. If the person purchases the house in the middle of the tax year the taxes paid for the portion of the tax year remaining are charged to the borrower. The property taxes for the current year will be allocated over a twelve month period and put in escrow so they can be paid either annually or semi- annually The first three months premium on the homeowners policy is normally included in the closing costs, then an amount equivalent to a one month rate is charged monthly from that point on and the money goes into the escrow fund to pay the insurance on an annual basis. There are title company fees for the title search and for the filing for the new owner. If there is an HOA (Homeowners Association) at least three months fees are collected at the closing. Just as an example , we purchased a home in Arizona for winter time living for $90,000. We paid 20% down or $18,000, then the title company allocates the closing costs. The seller paid 3% or $2,700 of the closing costs , even with that the items I have described above come to over $3,600 for our share of the closing costs.

We were aware after we took possession that there were things that needed to be done to our newly acquired property. We paid a plumber $600 to replace shower and tub plumbing , replace the washer faucets, and run a pipe to the front of the place for outside water. We paid an electrician $100 to repair a non working outlet, install a new ceiling fan, and two outside porch lights. We got the lights and ceiling fan at Home Depot for $200. Since this house is much larger than our previous living quarters , it is 1,700 sq ft, we needed more furniture. We bought a used bed and mattress, a used couch and love seat, a used TV Fireplace stand, a Maytag front load washer and dryer (4 yrs old). an oak dining room table and six chairs. All of those items came to about $1,000.

We found after moving n that the roof had some problems that were not disclosed in the inspection report we paid $380 for. He said the roof had a few more years in it and had a few loose shingles and several missing from the garage. The problem was much more extensive than that. There were whole sections that are not tacked down. A heavy windstorm came through two years ago, according to the neighbors, that blew the roofs off of many of the homes in the 58 home subdivision we live in. The neighbors said just about everyone got a good settlement on the roofs, but the people that lived in our house got the money from the insurance company and did not use it for the roof. A roof costs approximately $5,000 for our place. Also we needed a larger TV for our TV fireplace stand , we have a 40 inch TV. My wife wanted to get a 60 inch TV. I found that 55 inch TV’s are a lot cheaper than a 60 inch TV , so we are getting a 55 inch Toshiba TV. We looked at Walmart’s brand and Element brand that are cheaper, but the sound is not good on them, so for $50 more I got a Toshiba.

Hopefully after making the above repairs and improvements , the cash flow will slow down and we can live within a regular monthly budget.

As you can see it is not always wise to buy a home unless you plan on it costing significantly more than rent in the early years of ownership particularly if it is an older house , or a new house that needs landscaping and other items.

This Month’s Income Opportunity

Spring is here and a lot of people are beginning their extended vacations that may occur now, through the summer, and into the fall. Many need house sitters and or pet sitters. Click on this link to see how this might be an opportunity for you to live economically or to hire someone to meet your house sitting or pet sitting needs.

Click on this link Click Here!

Balancing The Family Budget For Long Term Goals

Posted on by

As a person goes through life they need to seriously consider where they anticipate being when they reach middle age and subsequently retirement age. A person does not have to be an executive to be putting money away for their retirement. For example, Walmart, Sam’s, and Costco, all have 401-K type plans where they match contributions by the employee up to a specified percentage. Even if a person just saves 5% of their salary and the employer matches all or part of that, it is really surprising how fast a retirement plan will begin taking shape. Most employers that have 401-K programs have agreements with a respected mutual fund company that offers several different funds for the employee to chose from. The fund choices that the employee makes will be influenced by the age of the employee at the point in time that they are contributing.

It is not uncommon for a company offering a 401-K program to change fund providers if the current provider is not meeting their yield expectations.

A younger person will certainly want to select an index fund for one of their choices, as an example say 50% of their contribution and the matching contribution. These funds usually move in much the same pattern as the stock indexes , such as the Dow Jones , S & P Index, and New York Composite index. This type of fund may go up or down dramatically as the stock market indexes move up and down. But over a ten year period since the great depression, stock indexes have never shown a decline comparing the beginning and ending indexes. Other choices for that person might be 25% contribution to a Balanced Fund these funds are usually made up of high grade bonds and common stocks. This type of fund is less likely to fluctuate as much as an Index Fund and is considered more conservative. A third choice for say 25% might be a European Stock Fund that has foreign stocks and currencies, it is more risky than the balanced fund but the growth of the economies in Europe can be dramatic. If any of these choices do not look like they are doing well or you see better choices of funds that are offered within your 401-K program, an employee can make a specified number of changes each year.

A middle aged person or couple will want to select more conservative funds since they may not be able to leave the money in there for ten years. The result might be that they needed to take money out when the market has not performed well and do not have time to wait for it to recover. These investors might want most of their money in a balanced fund , a bond fund , and or a money market fund.

Life insurance needs to be a component of your family budget. A younger person can a significant term life insurance policy for a small amount each month. It helps protect the family against financial disaster if either the man or the woman that are breadwinners or taking care of the family pass away. Also it can provide money for education for the children that have had a loss in the person accumulating funds for their education. Paid Up or Cash Value insurance is generally not considered a good investment, these policies cost more than term policies and offer less coverage and must be in force for many years before the cash value is significant. The cash value can be used for low interest emergency loans but they must be paid back or the person could lose the policy.

In periods when real estate is doing well in the area where a family lives. Or if property values are depressed and a person can wait out the depressed values , they may make a significant profit. Investment in real estate can help provide future funds for retirement. Purchasing property for rental, land for development, flipping houses , are all ways some knowledgeable people have been able to accumulate funds to make their subsequent retirement a reality. Since the big decline in real estate values in many states several years ago, bank repossessions, tax sales by governmental agencies, and other property sales for liens, offer great investment opportunities to make a significant amount of money if the person accumulates enough to pay cash for the repossessed property. Many investors parlay one “repo” as they call it into two properties. They fix the repo up and resell it at a profit.

If the contributions by the employee were not taxed when the employee contributed to the fund taxes will need to be paid when the funds are withdrawn on that money. A Roth IRA is defined as a fund where the taxes on the contribution are deducted so that the contribution to the fund is after taxes. In that case, when the funds are withdrawn there is no tax on the employees contribution.

This Month’s Income Opportunity

Spring is here and a lot of people are beginning their extended vacations that may occur now, through the summer, and into the fall. Many need house sitters and or pet sitters. Click on this link to see how this might be an opportunity for you to live economically or to hire someone to meet your house sitting or pet sitting needs.

Click on this link Click Here!

Family Budget Savings For Your Television And Entertainment Costs

Posted on by

We had Dish TV and Dish Satellite internet primarily because six months out of the year we live in the high mountain areas of Colorado, and there are not other alternatives. When we moved to Arizona in the winter we subscribed to Century Link for our internet which has almost unlimited usage for the better plan. We had a 15 gigabyte data limit for internet with Dish in the mountains. With the unlimited usage we were able to purchase a Roku which enables us to have lots of movies and add other services to our TV and run it through the Roku. If you subscribe to Sling TV and pay two months in advance, Sling will send you a free Roku. A Roku like the one Sling TV sends free costs $40 at Walmart. Sling TV can be cancelled at any time but it enables you to have lots of channels including many sports channels such as ESPN, ESPN2, and ESPN3, TNT, the History Channel, some movie channels and many more channels all for $20 a month. We also subscribe to Netflix for $10 a month. We also have Amazon Prime movies which comes with the Amazon Prime Membership of $100 a year, Roku also offers free movies on the Roku channels. Can you imagine all the movies you have access to for a fraction of the cost of having Dish or Direct TV and having to pay for the premium movie channels. Our internet and satellite TV when we are in Colorado is about $175 a month

Using the Roku which operates off of the Century Link internet which costs $65 a month for unlimited usage, Sling Box for $20 a month, Amazon Prime for $8.33 a month, and Netflix for $10 a month , the internet and TV services along with the movies available costs us less than $105 a month. We have a large selection of movies , news channels, and many of the channels that come with Dish or Direct TV.

You ask what about local channels or TV. If you live in or near a larger city that has all the local network stations such as NBC, CBS, and ABC, that can be handled. There is a Clearview antenna that sticks to a window nearby your TV that usually can get up to 40 or 50 channels which would include the local news channels. Also there is an aerial bar by GE that is an 18″ black bar that you can set on the window sill or stand up by the window that will get as many as 40 channels. Many of these channels have old time programming like GRIT, Decades, Bounce, the marketing channels, Mexican channels, religious channels, etc. For the one time cost of $30 or less you can get a Clearview antenna or a GE aerial bar.

Think of how much you save over a years time, probably as much as $1000 compared to having Dish or Direct and an internet service that limits the usage.

This Month’s Income Opportunities

Social Media can be a great help in driving prospects to your websites if you know how to use it effectively. Check out this opportunity to learn how it is done.
Click Here!

Most people are probably not aware that magazines want full articles, short stores, jokes, and stories about actual personal or family experiences. If you want to enroll for Writing Jobs it provides the names of the magazines which includes the Saturday Evening Post and many other publications that want articles. It explains how to submit the articles and gives the addresses for submission. The articles can be submitted on line. There are numerous job opportunities for editing , SEO optimization of existing dialog, data entry, proofreading, blog writing, and personal assistants all listed in the Real Writing Jobs lists.
Click on this link Click Here! The site offers a 7 day free trial with a $1.50 admin fee

Spring is here and a lot of people are beginning their extended vacations that may occur now, through the summer, and into the fall. Many need house sitters and or pet sitters. Click on this link to see how this might be an opportunity for you to live economically or to hire someone to meet your house sitting or pet sitting needs.

Click on this link Click Here!

Time To Set Up Your Family Budget For 2018

Posted on by

strong>It is time to establish a family budget for 2018. Also it is time to determine how you are going to have your 2017 tax return filed. I use Turbo Tax myself. An automated system like Turbo Tax is quite easy to follow and can save your family a considerable amount of money compared to having a tax preparation service or CPA prepare your return. January 1st is the best time to start a new check register if you are keeping it on your computer so income and expense information is kept separate by year.

Information Needed To Prepare Your Family Budget (Use an Excel spreadsheet to list these items) (1) Amounts of your net income items by month after taxes and other deductions, in other words your net take home pay by month (2) Information for the other income items by the dates they will be received. (3) Interest and Dividend information by the anticipated dates they are to be received. After you have all of the income items broken down by month on the Excel spreadsheet, total the income by month.

Next prepare the monthly family Expense Budget.
Some suggested items in the expense budget are: (1) House payment or rent (2) Car Payments (3)Electric bill (4) Heating cost (5) Utilities (6)Insurance-home (7)Insurance-auto (8)gasoline (9)Auto expenses (10) Medical Insurance (11) Medical Expenses (12)TV and internet Expense (13) Computer supplies (14) Telephone Expense (15)Pet Expenses (16)Home maintenance (17)Food (18)Meals out expense (18)Clothing expense (19)Personal items (20)Entertainment expense (21)Credit card payments (22)Loan payments (22)Dues and memberships (Add any other expense categories you have.
Total all of the EXPENSE CATEGORIES by month.

DEDUCT THE TOTAL EXPENSES BY MONTH FROM THE TOTAL INCOME BY MONTH. If the total expenses in a particular month exceed the total income than you will need to see what expense items you can cut to stay at or below the income total for that month. If your expenses are less than the income than determine where you want to put the excess funds. Savings , vacation funds, entertainment funds, new furniture, save for a car , education fund, are some common purposes.

Each family has their own unique set of circumstances. If you need to see actual budget forms before you prepare yours or if you want to pattern your forms after some that are in use, there are numerous free budget framework items included if you search on the internet for personal budget forms.

Having a family budget can be fun and will help put your mind at ease as 2018 progresses.

Time To Begin Preparing Your Family Budget for 2018

Posted on by

It is time to begin establishing a family budget for 2018. Also it is time to determine how you are going to have your 2017 tax return filed and when. I use Turbo Tax. Turbo Tax is easy to follow and can save your family a considerable amount over having a tax preparation service or CPA prepare your return. January 1st is the best time to start a new check register resulting in keeping 2017 and 2018 transactions separated.

Information Needed To Prepare Your Family Budget (Use an Excel spreadsheet to list these items) (1) Amounts of your net income items by month after taxes and other deductions, in other words your net take home pay by month (2) Enter Information for the other income items by the dates they will be received. (3)Enter interest and dividend information by the anticipated dates they are to be received. After you have all of the income items broken down by month on the Excel spreadsheet, total the income by month.

Next prepare the monthly family Expense Budget.
Some suggested items in the expense budget are: (1) House payment or rent (2) Car Payments (3)Electric bill (4) Heating cost (5) Utilities (6)Insurance-home (7)Insurance-auto (8)gasoline (9)Auto expenses (10) Medical Insurance (11) Medical Expenses (12)TV and internet Expense (13) Computer supplies (14) Telephone Expense (15)Pet Expenses (16)Home maintenance (17)Food (18)Meals out expense (18)Clothing expense (19)Personal items (20)Entertainment expense (21)Credit card payments (22)Loan payments (22)Dues and memberships (Add any other expense categories you have.
Total all of the EXPENSE CATEGORIES by month.

DEDUCT THE TOTAL EXPENSES BY MONTH FROM THE TOTAL INCOME BY MONTH. If the total expenses in a particular month exceed the total income than you will need to see what expense items you can cut to stay at or below the income total for that month.It is possible that the expenses might exceed the income in one month and be less than the income in the next month or months, in that case you may not need to adjust your expenses if the excess income occurs within a month or so of the deficit. If your expenses are less than the income than determine where you want to put the excess funds. Savings , vacation funds, entertainment funds, new furniture, save for a car , education fund, or possibly cover for a preceding month that is over budget.

Each family has their own unique set of circumstances. If you need to see forms before you prepare yours or if you want to pattern your forms after some that are in use, there are numerous budget framework items included if you search on the internet for personal budget forms, some of them are free.

Having a family budget can be fun and will help put your mind at ease as the year progresses.

Income Tax Preparation Considerations for Your Personal Budget

Posted on by

Many people are fearful of trying to do their own state and Federal income tax returns. Amazon has the several versions of Turbo Tax depending on your tax needs starting at $49 for the Deluxe version, the other three versions are higher priced because they have additional capability depending on the person or business’s tax needs.

At the present time it appears the proposed new tax law if enacted would not be effective until tax year 2018.

If you use a run of the mill tax service that has people twirling signs to get you in , or H & R Block, or some other well known service, beware of the cost considerations. I was a CPA and have prepared tax returns for services periodically. I quit working for services when they started offering loan services to clients so they could get their refund quicker. The last service I worked for set up temporary offices outside military bases offering refunds within 48 hours of the time the return was completed. The cost for that rapid turn around was unbelievable, usually $150 or more for a tax loan. The taxpayer agrees to sign over their refund to the tax service when it comes from the IRS. If you figure the loan interest rate percentage it was an annualized rate of as much as 1000% for the quick turn around. Also the tax preparation service asks if you want audit protection which basically says they will submit additional information to the IRS in case you are audited. It does not mean they will give the taxpayer anything. Some agreements say if the preparation service makes a mistake and it costs the taxpayer a penalty and interest that they will pay for the interest. In many cases the service will not pay the penalty because they argue you owed the tax in the first place. The cost of the franchised tax return services is high and has been rising each year. They hire people that have taken their free course for 12 three hour sessions. They usually pay a small hourly rate just above the minimum wage with the offer that if you stay to the end of the tax season you will get a big bonus as much as $3,000. The problem with that is that usually about the end of February they close down a lot of the offices outside military bases and close other offices to save rent. The result is that none of the people hired from their course group are employed at the end the season so they do not get the $3,000 bonus.

A small tax preparation business may not be insured or offer any recourse if there is a problem with the return. The client needs to ask up front what recourse do I have if you screw up? Also ask what background they have for preparing returns? If the person has just begun preparing returns stay away from them. If they only have a short course in tax preparation no matter how long they have been preparing returns stay away from them.

What about a Certified Public Accountant? There are small CPA firms, medium sized CPA firms, large national CPA firms, and firms that specialize in tax return preparation. A small CPA firm that is honest may be a good choice if the taxpayer’s return is not highly complicated. If the return is complicated , it would be a good idea to select a firm with several accountants and a research library. Usually one of the accountants in a medium sized firm has income tax experience that the other accountants can benefit from if they have a question. The cost will probably be more for the return than the individual CPA. Then there is the large national CPA firm that have a multitude of accountants and several levels of review for the tax return. Partnerships and Corporations are usually their main clients. Individuals that use a large national firm usually find the cost to prepare a relatively simple tax return prohibitive because so many people are involved in the reviewing process. There are CPA firms that specialize in tax return preparation. If that firm has a group that does small returns, with bookkeeping type skills, it is possible that the taxpayer will benefit by having a knowledgeable person at a reasonable rate prepare their return.

Be cautious, maybe you can prepare your own return using Turbo Tax software or a similar software package. Possibly you need a small firm for a simple return. Possibly you need a medium sized CPA firm to prepare your business or partnership return. Or possibly you need a large firm if you feel your tax situation warrants the expertise and if you think there is a possibility of being audited.

Making Good Personal Budget Decisions

Posted on by

Most families are faced with income deficiencies at some time during their life. One or more members of the family are faced with the decision of cutting spending, looking for a new job, or a source to supplement the present income.

There is a multitude of potential part time income opportunities. Many of them do not produce additional family income , they actually increase family expenses. When looking at multi-level marketing opportunities, a definite level of commitment is necessary. Many of those that enroll in a business opportunity run with a multi-level marketing format have great expectations without making a firm commitment to make it work.

If the business you are considering requires the purchase of an inventory, beware! Thousands of people have garages full of products from companies like this with little or no way to dispose of this inventory. The family budget is strained to get into the business. At that point many people start looking for part time jobs with employers just to get back to the point they were before making this mistake.

My wife and I have been associates with doTerra essential oils since company began nine years ago. My son enrolled us and we began using the essential oils for alternative medical uses and household cleaning, and personal uses. We did commit to purchase a $100 a month of product which was approximately the amount of product we would use in our family. Purchasing at that level entitled us to enroll other associates and receive a commission for those sales. We knew we would not get rich at the level we were able to pursue, but it did provide enough to pay for much of the essential oil purchase we made. My son and his wife are very successful with doTerra and work at it full time. It is a matter of the commitment a person or couple are willing to make. There are risks but there are great rewards if a person keeps a positive attitude and works hard to succeed.

Many years ago my wife and I enrolled with Amway. Amway required those wanting to make a business of it to purchase a large inventory and supply those they enrolled with product. The investment was high, the people needed a place to store the product , and the cost of driving to distribute the product reduced the income potential. We were just associates , we purchased our product from those that had the inventory in their garages. We made a small amount of income but we unwilling and unable to purchase the inventory they mandated to be successful. Also all kinds of devious ways were used to get people to watch a video about Amway in hopes they could be enrolled.

When families are faced with the mother of a family going to work to help the husband and they have children, a lot of considerations need to be made. Having two cars, the cost of fuel , the cost of child care , are costly components that may deter the benefit of the mother working. Many mothers use child care as a means of helping with the income. That option takes away the need for another car, and the child care expense.

After considering all of the additional income possibilities for your family, be sure to consider cutting your expenses so that the family can live comfortably within the current family income.

Good luck in coming to an intelligent decision on living within your family income!