Thursday, February 3, 2011
Money Matters: Top 5 Steps to Resolving Money issues with Your Pa...
Money Matters: Top 5 Steps to Resolving Money issues with Your Pa...: "Money is really tough enough to manage without any additional problems added into the mix. When you add the dynamics of a relationship on to..."
Top 5 Steps to Resolving Money issues with Your Partner
Money is really tough enough to manage without any additional problems added into the mix. When you add the dynamics of a relationship on top of money management, well things can get downright difficult. Whenever two people come together in a relationship, they bring their own sets of values and beliefs about how to handle money. Typically, one will be a saver and the other a spender.
If the main breadwinner is a saver, then most of the control over how money is spent falls to that person. The saver almost acts like a controlling parent when it comes to spending money. The spender in this relationship may spend money carelessly, never saving a dime. Unless a sort of middle ground is established, the saver usually ends up controlling the relationship. Many times the saver will establish very rigid financial boundaries causing the spender to feel guilty about the money spent. Some spenders even go "underground" continuing to spend money but attempting to conceal it from the saver. here are some helpful tips on resolving money issues.
Respect One Another
The spender and the saver typically have two separate points of view when it comes to money. Of course, the saver wants to spend less and save more, and the spender wants to spend more and save less - or nothing at all. So, if you have fought over this issue before you know that nothing will come of fighting. It's time to come up with a plan which offers a compromise both of you can live with.
The spender needs to agree to spend less money or bring in enough money to make up the difference. The saver agrees to stop lecturing and laying guilt trips on the spender while allowing some lee way in spending. In other words, both of you need to move in the direction of the other.
Establish Basic Rules for Money
Rather than fight about money issues, make some basic ground rules with one another that both of you can live with. For instance, make it a rule that neither of you can spend more than $100 without discussing the purchase with the other. Another rule might be that gifts for family, friends, weddings, birthdays, etc. must be under a set amount. Also, if one of you needs to make purchases for your own personal things, like a custom bowling ball, or a pair of Italian pumps - then that purchase must be made from each partner's personal accounts.
Bank Accounts
If all the money made in your household belongs to both of you, and you can make that work - great! However, in order to avoid financial death match fights, some couples have found it best to have three separate accounts. One for each partner, and a joint account. The joint account is for household and other bills to be paid from an both of you will contribute to this joint account. Who puts in how much is up to you, but the amounts contributed should be fair and equitable.
After the initial contributions are made to the joint account to pay the bills, decide how much money will be saved, set aside for retirement, or for future large purchases like a new car or furniture. Whatever is left after all of that is split and placed into each partner's individual accounts. This money is all yours to be spent on whatever you like.
Fair Deal
The main goal here is to come up with a fair plan that both of you can be happy with. If one feels that they should have more spending money because they bring in more income, then sit down and discuss it. Perhaps if one of you makes more they should be able to spend more. One thing is for sure - if one of you spends more and the other resents it, there's gonna be trouble.
Look at Your Bills
One of you may be the person who pays the bills every month, and one may never look at the bills at all. Some couples rotate the duty every other month, or every six months. Regardless of what your situation is, it's important that both of you sit down and look at your bills together every quarter, or once every three months. Planning ahead for upcoming expenses or possible shortfalls in the budget will ensure that you're both on the same page financially.
Make a commitment to talk about things before they become a sore spot or an issue. Communication is the key to any lasting relationship, especially when it comes to money.
If the main breadwinner is a saver, then most of the control over how money is spent falls to that person. The saver almost acts like a controlling parent when it comes to spending money. The spender in this relationship may spend money carelessly, never saving a dime. Unless a sort of middle ground is established, the saver usually ends up controlling the relationship. Many times the saver will establish very rigid financial boundaries causing the spender to feel guilty about the money spent. Some spenders even go "underground" continuing to spend money but attempting to conceal it from the saver. here are some helpful tips on resolving money issues.
Respect One Another
The spender and the saver typically have two separate points of view when it comes to money. Of course, the saver wants to spend less and save more, and the spender wants to spend more and save less - or nothing at all. So, if you have fought over this issue before you know that nothing will come of fighting. It's time to come up with a plan which offers a compromise both of you can live with.
The spender needs to agree to spend less money or bring in enough money to make up the difference. The saver agrees to stop lecturing and laying guilt trips on the spender while allowing some lee way in spending. In other words, both of you need to move in the direction of the other.
Establish Basic Rules for Money
Rather than fight about money issues, make some basic ground rules with one another that both of you can live with. For instance, make it a rule that neither of you can spend more than $100 without discussing the purchase with the other. Another rule might be that gifts for family, friends, weddings, birthdays, etc. must be under a set amount. Also, if one of you needs to make purchases for your own personal things, like a custom bowling ball, or a pair of Italian pumps - then that purchase must be made from each partner's personal accounts.
Bank Accounts
If all the money made in your household belongs to both of you, and you can make that work - great! However, in order to avoid financial death match fights, some couples have found it best to have three separate accounts. One for each partner, and a joint account. The joint account is for household and other bills to be paid from an both of you will contribute to this joint account. Who puts in how much is up to you, but the amounts contributed should be fair and equitable.
After the initial contributions are made to the joint account to pay the bills, decide how much money will be saved, set aside for retirement, or for future large purchases like a new car or furniture. Whatever is left after all of that is split and placed into each partner's individual accounts. This money is all yours to be spent on whatever you like.
Fair Deal
The main goal here is to come up with a fair plan that both of you can be happy with. If one feels that they should have more spending money because they bring in more income, then sit down and discuss it. Perhaps if one of you makes more they should be able to spend more. One thing is for sure - if one of you spends more and the other resents it, there's gonna be trouble.
Look at Your Bills
One of you may be the person who pays the bills every month, and one may never look at the bills at all. Some couples rotate the duty every other month, or every six months. Regardless of what your situation is, it's important that both of you sit down and look at your bills together every quarter, or once every three months. Planning ahead for upcoming expenses or possible shortfalls in the budget will ensure that you're both on the same page financially.
Make a commitment to talk about things before they become a sore spot or an issue. Communication is the key to any lasting relationship, especially when it comes to money.
Saturday, January 29, 2011
Money Matters: Tax Changes for 2010 and 2011
Money Matters: Tax Changes for 2010 and 2011: "There are some new changes in the tax rates and tax laws for 2011 so be sure to get all the information you need to get more of your money b..."
Money Matters: Tax Prep 101: Hiring the Right Person for Tax Prep...
Money Matters: Tax Prep 101: Hiring the Right Person for Tax Prep...: "Whether it's your brother-in-law or a full fledged CPA, it just makes sense to check out the person who is preparing your taxes."
Tax Prep 101: Hiring the Right Person for Tax Preparation
Whether it's your brother-in-law or a full fledged CPA, it just makes sense to check out the person who is preparing your taxes. One tax preparer in Edgewood, Md. was convicted and received a sentence for two years in he federal lock-up for claiming farm related losses for clients who didn't even own a farm, making false claims for deductible expenses, and overstating his client's contributions to various charities.
Most Tax Preparation Services Are Trustworthy
Yes, it is true that most of the tax prep guys out there are going to be as honest as the day is long, there are still a few that may stretch the truth and get you into some serious trouble with the IRS. There are also some well-meaning tax prep folks who simply make an occasional mistake. You just better hope and pray they don't make it on your tax return.
Tax Filing Errors are Common
Back in 2006, the Government Accountability Office conducted some undercover operations to find out just how widespread the tax prep problem might be. The GAO sent about 19 tax returns to random commercial tax preparers. Most of the returns were missing some very common deductions and all of them had mistakes. The bottom line here is that people are not getting all the money they have coming to them.
What to Look for in Your Tax Preparer
To make sure you're getting the most money back on your tax return, ask some questions:
1) Ask your tax preparer how they determine their fees. Most will simply charge a flat fee to prepare certain types of tax forms. For example, a 1040EZ should cost less to prepare than a taxpayer who has numerous investments and rental properties. Make sure you understand all the potential fees and charges and then get a quote in writing.
2) Ask your tax preparer what sort of past experience they have in preparing your type of tax return. Yes, everybody has to learn to do tax returns somehow, just not on your tax return. Resist the urge to help out someone who needs experience and go for the experienced pro who has several years preparing tax returns similar to yours.
3) Ask about any professional designations. Is the person preparing your taxes a licensed Certified Public Accountant (CPA), or just a guy who is taking accounting classes at the local night school? CPA's, lawyers, and enrolled agents are required by law to go through a continuing education program that keeps them up to date on all the latest tax laws, codes, and regulations. These pros are also going to be authorized by the IRS to represent you in case there's a problem like an audit, appeals, payment plans, or problems with collections.
4) Ask if your tax preparer has represented clients with tax issues or problems. Tax preparers with previous experience dealing with the IRS are going to be invaluable if you have a problem. They will already know what to expect and how to deal with it effectively. But, there is a downside here - you don't want tax preparer who has too much experience with the IRS. You may end up with a guy like the aforementioned gentlemen who claimed farm losses for his clients with no farm. That guy has too much of the wrong kind of experience with the IRS.
Even if you hire the best tax preparer out there, you are the one who is ultimately responsible for the information submitted on your income tax return. Make sure you keep in close communication with your tax preparer and always review and examine the return carefully before you file it.
Whether it's your brother-in-law or a full fledged CPA, it just makes sense to check out the person who is preparing your taxes.
Most Tax Preparation Services Are Trustworthy
Yes, it is true that most of the tax prep guys out there are going to be as honest as the day is long, there are still a few that may stretch the truth and get you into some serious trouble with the IRS. There are also some well-meaning tax prep folks who simply make an occasional mistake. You just better hope and pray they don't make it on your tax return.
Tax Filing Errors are Common
Back in 2006, the Government Accountability Office conducted some undercover operations to find out just how widespread the tax prep problem might be. The GAO sent about 19 tax returns to random commercial tax preparers. Most of the returns were missing some very common deductions and all of them had mistakes. The bottom line here is that people are not getting all the money they have coming to them.
What to Look for in Your Tax Preparer
To make sure you're getting the most money back on your tax return, ask some questions:
1) Ask your tax preparer how they determine their fees. Most will simply charge a flat fee to prepare certain types of tax forms. For example, a 1040EZ should cost less to prepare than a taxpayer who has numerous investments and rental properties. Make sure you understand all the potential fees and charges and then get a quote in writing.
2) Ask your tax preparer what sort of past experience they have in preparing your type of tax return. Yes, everybody has to learn to do tax returns somehow, just not on your tax return. Resist the urge to help out someone who needs experience and go for the experienced pro who has several years preparing tax returns similar to yours.
3) Ask about any professional designations. Is the person preparing your taxes a licensed Certified Public Accountant (CPA), or just a guy who is taking accounting classes at the local night school? CPA's, lawyers, and enrolled agents are required by law to go through a continuing education program that keeps them up to date on all the latest tax laws, codes, and regulations. These pros are also going to be authorized by the IRS to represent you in case there's a problem like an audit, appeals, payment plans, or problems with collections.
4) Ask if your tax preparer has represented clients with tax issues or problems. Tax preparers with previous experience dealing with the IRS are going to be invaluable if you have a problem. They will already know what to expect and how to deal with it effectively. But, there is a downside here - you don't want tax preparer who has too much experience with the IRS. You may end up with a guy like the aforementioned gentlemen who claimed farm losses for his clients with no farm. That guy has too much of the wrong kind of experience with the IRS.
Even if you hire the best tax preparer out there, you are the one who is ultimately responsible for the information submitted on your income tax return. Make sure you keep in close communication with your tax preparer and always review and examine the return carefully before you file it.
Whether it's your brother-in-law or a full fledged CPA, it just makes sense to check out the person who is preparing your taxes.
Tuesday, January 25, 2011
Money Matters: Tax Changes for 2010 and 2011
Money Matters: Tax Changes for 2010 and 2011 (Article): "There are some new changes in the tax rates and tax laws for 2011 so be sure to get all the information you need to get more of your money b..."
Debt Financing: Good or Bad for Business?
Debt Financing for Business Has Advantages (Article)
Most companies will use a combination of several methods to finance a company and bring needed cash into a business.
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