• Hot dogs
• Hamburgers
• Chips (which you can often get 2-for-1)
• Soda
• Paper decorations in red, white and blue

Even the packages of fireworks for home use are often inexpensive. And, when you get together as a family, everyone brings something to contribute. Last year, my husband and I put on a bash for my sister and brother and their families. We had a great time for less than $50.

It’s a good time to remember the birth of our country, why it is so great, and realize that even in a time of economic hardship and recession it is possible to enjoy a good celebration for very little money . I hope you will join me in remembering our founders, taking a few minutes to read a copy of the Constitution and thinking on how we can be better citizens.

Happy 4th of July!

Image source: ohad*

Post from: Bizzia

Here are some things our culture has come to see as “needs” in the past two decades

• Second car
• Television with cable or satellite service
• Computer with Internet access
• Lots of activities for our kids
• Cells phones
• Eating take out (or going to a restaurant)
• Video game systems

I’m sure you can think of several other things that seem necessary. All of these items cost money. The advent of easy credit in the mid-1980s, and its acceleration in the 1990s, has made buying these things convenient. Indeed, instead of saying “no”, we as a society become prone to giving into temptation and pulling out the plastic.

But now, we, as a society, are realizing that many of our “needs” are actually wants . Everyone in the family does not need a cell phone. Unless you work from home, Internet access is not required. And, of course, there is very little use in having cable or satellite TV service. While I love our second car for the convenience it offers, I know that we don’t need it, and that it is really a luxury.

There is nothing wrong with enjoying luxuries and indulging in some wants. However, splurging should be done in moderation . Additionally, it is important make sure that you can afford the luxuries that you purchase. Recongnize the difference between needs and want s, and remember that if you can’t afford the wants, you should probably learn to say no.

Image source: William Hook via Flickr

Post from: Bizzia

“We can expect to see a surge in the boomerang generation [ages 18-24] returning home and continuing financial dependency on parents due to a scarce and competitive job market,” said Toon van Beeck, senior analyst at IBISWorld. “This phenomenon has become more apparent in recent years, with higher costs in tuition and rent making transitioning into adulthood increasingly difficult. Thanks to the recession, many parents will get prolonged time with their kids until their debt is paid off or market conditions improve .”

For the most part, mom and dad pick up the bill. Additionally, it is worth noting that even married children are moving back in. The incident of foreclosures, job loss and other factors means that sometimes children, their spouses and their children are moving in further inflating costs.

Should you let your adult children have a free ride?

While it may seem cruel to charge rent and demand help around the house, the fact of the matter is that the costs of taking care of adult children (and sometimes their families) can become a burden on parents. The obvious solution is to ask for help with the cooking, cleaning and yardwork . Additionally, make it clear that you expect your adult children to look for jobs while they are staying with you. And, if they do have some sort of employment, you might ask them to chip in for utilities costs and groceries. After all, you are a victim of the recession as well.

Image source: Old Shoe Woman via Flickr

Post from: Bizzia

As you probably know, there is a carbon market out there, with cap and trade systems that allow participants to buy and sell carbon credits . (The U.S. carbon market is in Chicago.) But getting access to the market as an individual is a bit difficult. My Emissions Exchange is designed to help you “sell” your carbon savings on the market. After entering your energy usage for the past year, you update each month’s use and My Emissions Exchange will record it. The company then packages savings into credits, and sells them on the market. You are compensated a portion of the sale , paid to you via PayPal.

An email I received from My Emissions Exchange offers this insight into the motivation behind the program:

The idea is to influence individual consumer behavior by providing an extra financial incentive to minimize your carbon footprint . Consumers will already save considerably by reducing their utility bills; this program will provide them with advice, a built-in “support group” and cheering section in the form of the other users of the site, and an extra financial bonus for the resulting verified carbon credits.

It looks like an interesting program, and one I want to learn more about. After all, appears to be a step in the right direction in terms of rewards for desirable behavior , rather than punishment for undesirable behavior.

Post from: Bizzia

1. Earn more than you spend.
2. Keep track of your outflows.
3. Don’t buy things you can’t afford (especially high-priced, luxury items).
4. Use debt as sparingly as possible.
5. Set aside money for the future.

Plenty of personal finance folks have written about Michael Jackson and his financial legacy. Here are some of the highlights of the financial coverage surrounding the King of Pop:

• MoneyEnergy provides a parody of “Just Beat it” called “Just Budget”.
• Bible Money Matters offers a look at famous finances (including Michael Jackson’s) and admonishes every to spend less than they earn.
• Daily Finance looks at how Jackson memorabilia is already rising in price. As with other stars, Michael Jackson may make more in the afterlife. Too bad he won’t be able to spend it.
• Entertainment Daily has a piece on Jackson’s attempts to blame his nanny for some of his financial troubles.
• Banks.com looks at what makes a prudent investment. Jackson made some good investment moves, but they weren’t enough to overcome his poor decisions.
• Kitchentablenomics explores the money lessons we can learn from Michael Jackson.

Image source: U.S. Government via Wikimedia Commons

Post from: Bizzia

Post from: Bizzia

One of the interesting things about The 1-2-3 Money Plan is the way it is organized. As the title implies, Karp has set up the book so that it revolves around the “rule of 3″. He reduces most personal finance principles down into 3 three doable steps that can help you plan . (He does this over and over again throughout the book.) Some of the topics covered in the book include:

• Spending
• Estate planning
• Identity theft
• Banking
• Insurance
• Retirement
• Saving
• Credit cards
• Credit score/report
• Choosing a financial adviser

The subjects are important for those floundering and attempting to make a plan. One of the things that struck me is that Karp sets up the book into three sections, all devoted spending smart: Today, Yesterday and Tomorrow. All of the steps given in The 1-2-3 Money Plan revolve around making a plan for your money that involves preparation and considering what you are doing with your money. The goal, of course, is to learn what you need in order to ensure that you set yourself up for success with money . Tips, examples and reminders throughout the book offer easy to read insights.

For those who are unsure of where to begin, The 1-2-3 Money Plan can be extremely helpful in terms of providing direction and helping you develop a cogent plan for your money. It may not be as useful for those who already have a money plan and their finances under control. But it can serve as a good reminder.

Have you read The 1-2-3 Money Plan ? What did you think of it?

Post from: Bizzia

The matinee price at the movie theater we went to is $5.50. Compared to the price we paid for a movie when we lived in New York, that’s a great value. But what if I didn’t like the movie? Maybe not such a good value after all. Incidentally, I thought Transformers was largely worth my $5.50. Plus concessions for my husband and myself: $9.25.  But there are other considerations for me when I see a movie:

1. I usually go with my husband , so we spend time together. And we have something to talk about afterward.
2. I like getting concessions . I know they’re a rip-off, but when I go to a movie I want to eat and enjoy the full experience. (Much like when I go to a baseball game. I have to have a hot dog. Or two. And nachos.)
3. It’s fun for me to see action movies on the big screen . The sound and the visual is great on the big screen.
4. I can lose myself for a couple of hours , and just be entertained.

So, seeing a movie is a good value for me. Unless I hate the movie. But we rarely choose to go to movies that we might hate.

At any rate, as I came out of Transformers and my husband pointed out that it didn’t deserve the horrible things lots of people said about it, I thought about how personal preference pays a big role in what we perceive to be a good value . Some of the people in the theater probably felt that they had been robbed by the amount of money they paid (especially if they got concessions). But when I go to a movie, I prepare for certain expenses, and I am willing to pay for the experience. To me, there are certain things about watching a move in the theater that make it a good value.

What do you think makes a good value?

Image source: Air Force via Wikimedia Commons

Post from: Bizzia

Payment plan with the IRS

One of the easiest ways to pay your tax debt is to set up a payment plan with the IRS . You will be charged interest (usually between 5% and 9%, depending on what you owe and your credit), just as you would be with any other loan. After all, the payment plan is really just another name for a loan that the IRS makes to you.

Loan to cover the amount you owe

You can also take out a loan to cover the amount that you owe in taxes. However, unless you have a great interest rate, or manage to get a 0% introductory rate on a credit card that you can use for this purpose, you are usually better off just setting up a plan directly with the IRS. You still have to make payments — with interest — to someone . And besides, credit standards being what they are, you may not get approved for the loan you want.

Settlement

The final option is debt settlement . Believe it or not, you can sometimes settle your debt with the IRS . As with any creditor, the ability to pay less than you owe overall is available. However, you usually have to prove that you really can’t discharge your tax debt in full in order to be approved for this option. But if you can successfully prove that you are unlikely to meet your obligation anytime soon, the IRS might be willing to accept between 25% and 75% of what you owe if you can pay it immediately.

Image source: alykat via Flickr

Post from: Bizzia

• Bump-up CDs
• Liquid CDs
• Zero Coupon CDs
• Callable CDs

It is important, though, to be careful when you start getting fancy with any financial product. Brokerage CDs, for example, may not be FDIC insured . Interest rates vary, and terms and penalties vary as well. Some CDs offer higher interest rates (callable), while others allow you access to your money at any time, penalty-free (liquid). But for every advantage, there is a disadvantage to balance it. You should read the fine print before committing to one of these CDs .

In the end, as with all personal finance transactions, you need to study what would be in your best interest and choose the right product for you. There are some great ways to maximize your cash, and CDs are more versatile than you might realize . Be sure that you understand how they work so that you are able to make an informed decision. Before investing in anything , you should understand how it works.

Image source: Daylife

Post from: Bizzia