Archive for April, 2007

The United States Bureau of Engraving and Printing offers fun online games that will give you an opportunity to talk about money with your kids and help them learn while enjoying the games. Together you can design a personal “family bill” and forward to friends and relatives. Play trivia games or try to catch a counterfeit bill. Tour the Bureau of Engraving and Printing virtually. Expand your knowledge of currency while playing–it all adds up to good financial sense for your whole family.

Good news for those in the northeastern United States affected by Monday’s major storm: the government has extended your tax filing deadline by 48 hours. The Internal Revenue service decided that due to bad weather, lost power, and public transportation issues, victims of the storm will have two more days to file taxes without fear of penalty. The new deadline is midnight on April 19; taxpayers need to mark their returns with the phrase “April 16 Storm” or use the “disaster” feature if filing electronically. Visit irs.gov and click on Newsroom for further details.

On April 12, the United States Postal Service released a 41 cent stamp called the Forever Stamp. The PO claims that this stamp will be valid forever, no matter what the rate for a stamp may be at the time.

I confirmed this with my local postman and he says the stamps will indeed be valid as first class postage on a one-ounce single letter forever (or as long as the USPS stays in business). The post office wanted to make the price increase on May 14 more convenient for its customers and eliminate the need for future make up stamps.

The 41 cent Forever Stamp features a picture of the Liberty Bell and is not stamped with a price. Be sure to stock up on the Forever Stamp–can you imagine your satisfaction the day everyone else is paying $1.00 or more to mail a letter and you are still spending only 41 cents? They are available at any US Post Office, the US Postal Service Web site, or by phone at 1-800-782-6724.

The key to success in any venture is planning. Set out on a voyage without a map and adequate supplies and you are bound to fail. Financial planning is similar. If you don’t know where you are going, it’s tough to get there. Sit down tonight and plan your financial future. Where do you want to be a year from now financially? In five years? How about your retirement goals? Factor in the costs of all your dreams and write out a specific plan to get there. How much do you need to invest weekly, monthly, yearly to attain your goals? Make your plan and put it into action–you’ll move closer to your dream of financial freedom.

Though the deadline for filing taxes was extended by a few days, now is the time for action. Don’t forget to keep copies of all tax forms for your records.

After you’ve completed the tax forms, talk about filing taxes with your kids. Allow them to look at your returns and ask questions. This is a great opportunity to teach your kids about money and how it works.

When the finance company providing your mortgage threatens closure on you, then its time for action. Being evicted from your home and losing everything you have put into it is and extremely stressful experience that may well affect the rest of your life.

From time to time we here at Financing Wealth get asked to review websites and recently this mortgage foreclosure site asked to discuss their site. It got me thinking about mortagage foreclosures and what people should know even if their house isn’t facing foreclosure.

Its not just the loss of your home and savings, its also the damage to your credit history which will make it far more challenging to get financing in the future. However there are ways to avoid property repossession. If you are unfortunate enough to be in this position there are businesses that can help to stop repossession of your house. And also teach you warning signs to look for if you are close to it.

Such companies will also give you options to sell and rent back your home , enabling you to clear your financial debts and keep your home to live in. Some of the companies specialising in this area will also give you the right to repurchase your property at a later date once you are in an improved financial situation. Thus creating possibly the best option for you, getting your home to live in whilst you keeping the right to buy it back.

That little bit of information was really interesting to me because people who file for bankruptcy (which is more difficult now than before) can avoid filing and sill keep their house. Even though you may pay an arm and a leg in interest, you still have the option of owning your house in the end.

Good resource to learn from to prepare you for any situation that might arise in your financial world.

Make a commitment to changing your thoughts about money. The more you think and speak negative thoughts about money, the worse your financial situation. You attract what you believe. Conduct an experiment over the next few weeks. Pretend that your life is abundant. Believe that you are attracting money and opportunities every day. When you begin to complain about money or debt, replace those thoughts with ones of abundance. Imagine how it would feel to achieve financial freedom. Live these thoughts as well–if you spend each day spending money you don’t have, you are likely to stay poor. You have nothing to lose and everything to gain by simply changing your thoughts and actions towards money.

To get a jump on next year’s taxes, make sure you are taking full advantage of all salary reduction plans available through your employer. When tax time rolls around again, you’ll be glad you took a few minutes to make small changes that pay big.

Your first priority is to max out your 401k contributions if this is an option your employment offers. Remember to invest enough in your 401k to get any company match, typically an extra 6% or more annually based on your contribution.

Many employers also offer pre-tax deduction options such as flexible spending accounts for medical expenses, child care costs, and public transportation fees. By paying for these expenses before taxes, you are actually paying less in the long run.

For example, if you contribute $2,500 to your flexible spending account, you do not pay taxes on that money. You need to remember to go through the reimbursement process, but it costs you less to go this route.

Two weeks until April 17 — this year’s extended deadline for filing taxes in the United States. Make the most of your deductions and minimize your taxes by starting now. Collect your receipts, forms, and other paperwork and get to business.

Remember to review new taxation laws to see if you might profit from them. Don’t forget to take advantage of this year’s tax break on phone tax.

Take care to avoid these common tax mishaps which can flag the IRS to audit you. If you receive a refund, be sure to make it count.

Here are the biggest mistakes that folks make on the road to wealth. Double check to be sure that you aren’t guilty of any of these poor judgments.

Holding a 30-year Mortgage

If you have a 30-year mortgage, you could spend more than $100,000 extra dollars more than those with a 15-year mortgage.

Letting Someone Else Control Your Money

Know the details of your finances, don’t just turn it over to a broker, financial consultant, or spouse.

Failing to Control Leaks in Spending

Many Americans in debt spend their money in small amounts. If you plan to accumulate wealth, you have to stop leaks in spending.

Failing to Plan

If you don’t know where you are going and have no plan to get there, chances are you’ll never arrive. Write out your goals and visualize them.

Incurring Too Much Debt

If you spend all your money on interest on debts, you have nothing left to save. Pay cash and avoid credit card debt to pave your way to wealth.

Poor Retirement Saving Habits

Start early and save at least 10 to 15% of your income. Start today!

Taking Money From Retirement Funds

If you cash out or borrow money from your 401(k), chances are you’ll never make up the lost retirement savings.