Recently I wrote about the external flash I bought for my Sony A350 DLSR camera.  While the flash itself seemed pretty good, both my wife and I found we really didn’t need it for the shots we take.  After a couple of months of not using it I decided to heed Mr. Cheap’s advice and sell it.  On the original post there were a lot of very inspirational comments but the reality is that we just aren’t going to take the time to learn how to use the flash properly.

The cost of the flash and batteries was about $410.  Because this package would cost around $470 if bought from Future Shop I decided to try selling it for $375.  I put an ad on Kijiji and waited.  After about 2 weeks with no replies I decided to lower the price and also post on Craigslist.
I put a new ad on Kijiji and Craigslist asking for $300.  I didn’t get any responses from Craigslist but after a few days I got several responses from the Kijiji ad.  One guy was very keen and came over that night and bought it.  I know I could have gotten the full $300 for it but he asked if I could move on the price at all and I said $280 would be ok which he accepted.
I thought it was interesting that while I’ve learned a lot about negotiating over the last few years and was able to recognize that he would have paid the $300 – I still lowered the price a bit.  I guess I’m just not a hard-nosed negotiator. 

The overall loss was about $130 which is a fair bit but considering I overpaid about $50 for the batteries (yes, dumb), the actual depreciation was about $80.

As Mr. Cheap said, the flash is new and if I’m not going to use it then I should sell it right away.

Definitely sell it, if it’s going for $435 at Future Shop, I’m sure you could get $300. Even $200 sounds like it’d be better than a flash you’re not using. With tech like this, it depreciates quickly, so sitting on it and trying to sell it in a year or two will probably lose you a lot of money.

Now I think I might take a look in the basement and see if there is anything else of value… 25 year old cross-country skis anyone? 

We’re coming up on Valentine’s Day, when the young (and old) hearts and thoughts take a romantic turn. In this spirit, my posts for this week and next will all involve love and personal finance. If any other bloggers want to join in on the fun, please send me a link to your post at cheapcanuck@gmail.com and I’d be happy to profile what you’ve written.

As I alluded to in my economics of dating post, I have an approach to dating that I’ve used and have recommended to friends which I think would be useful to many people who are unhappily single.  To be completely upfront, I’ve never been married (and have only lived with one woman for a brief period of time).  However, I’ve dated a reasonably large number of woman (enough that I’m not sure the exact count at this point) and have had a few women who would have been willing to marry me, so I stand behind this.

For anyone who questions if dating advice belongs on a personal finance blog, who we marry (and whether we stay married to them or not) MASSIVELY affects our financial situation.  Along with career choice and spending habits, our partner is probably one of the biggest determining factors in personal finance.

The first element of this is that the date-seeker needs to get rid of any idea of “soul mates” or “their type”.  I suspect that over the course of a lifetime we all meet 100-200 people we could probably have a reasonably happy life with.  It’s ok to find some characteristics attractive (personally I really like redheads – yum!), but if you become fixated on something as an absolute requirement, and there aren’t many people who fulfill your requirement, you’re setting yourself up to be alone.

As an example, many woman want a guy who is taller than them, earns more money than them and has nice hair).  That’s great unless you’re a tall, successful woman and you’re competing with similar women for the same small pool of guys.  If a guy’s only demand is that the women he dates be swimsuit models, he’s got some long, lonely nights ahead of him.

Some people say “be picky, you’re worth it!”  If someone wants to be dating and they aren’t, then they’re being too picky.  Of course, if someone would rather be alone than compromise, that’s totally cool but they need to own that decision (they’ve chosen to be alone:  no complaining ).

The second element that needs to be jettisoned is the idea that singles can sit back and wait to run into Mr. or Mrs. Right.  They can’t.  All sorts of people never get married and they cop out later in life with the lame excuse “I just never met the right person”.  Bullshit.  They needed to go out and find the right person (and instead, unwisely, chose not to).

Once these two ideas have been abandoned, the date seeker just needs to find enough prospects to ask out in order to find enough people to date seriously in order to find someone to propose to who’ll say yes and get married to them (it’s as easy as that!).  Think of it as a pyramid or a weeding out process where the most important part is the number of prospects (there needs to be enough of them to find that special someone).

I once read about a psychologist who got tired of his clients saying “no one will date me” and he ran an “experiment” where he would walk up to women and ask them if they’d go out on a date with him (no cheesy lines or anything, just walk up and ask).  It took him 50 tries, but eventually someone said yes.  I don’t know how good (or bad) looking he was, but I think this would probably be true for anyone (eventually someone will say yes).

Fortunately, technology makes things even easier.  Sign up for Match.com, eHarmony, OkCupid and Plenty Of Fish and send messages to 3 people a day.  That’s 21 people a week or about 90 a month.  Push through the pain of rejection or fear and eventually there will be dating.  Say 1 in 10 people messaged on OkCupid will respond and meet for coffee, 1 in 10 people met for coffee will go on a second date, and 1 in 5 of these people dated a second time becomes a serious relationship leading to marriage.  This implies 500 people need to be messaged to find true love.

I’m somewhat (not completely) sympathetic to women who aren’t willing to ask men out or initiate contact on dating sites (so women can lead G8 countries, but can’t ask a man out on a coffee date?  RIIIGGGHHHTTT).  If someone decides they aren’t going to do the asking out, they have an obligation to make it very clear that they’re available, single, and likely to say yes.  I’m not sure the exact mechanics of this (I’d appreciate any women who can make suggestions in the comments), but the nearest I’ve figured it out is that it involves smiling a lot and working into the conversation that she’s single (“well, as a single woman who isn’t seeing anyone right now, I have a particular interest in whether or not Greece is on the verge of bankruptcy…”).

For guys who think they’ll be destroyed (DESTROYED!) by a woman saying no to them:  you won’t be.  Man up!

If you’re married or in a relationship, what’s your favourite piece of dating advice?  If you’re (unhappily) single what’s been preventing you from finding someone?

This guest post is from PT of PT Money: Real Personal Finance for a Life Without Limits! Check out PT’s latest post about using a joint savings account.

PT is a pretty interesting guy with a blog that you should subscribe to.  He also has a finance rap video which I featured here a long time ago – if you haven’t seen it then I insist that you check it out.

This post refers to the IRS but the concept obviously applies to any country – and April 15th is probably a good tax deadline for Canucks too. 

It’s tax time again! What are you going to do this year? Stick with the old school method of filing by mailing in your forms? Or are you going to try this new thing called e-filing (now a 20 year old process)?

Don’t worry. I won’t beat up on you non e-filers too much. There are actually a few reasons why mailing your forms may make sense and even be required. Let’s look at the differences between the process of e-filing and mailing in your forms.

The Traditional Filing Process

Before e-filing was around (pre-1990), everyone mailed their tax forms to the IRS. Even if you use fancy tax preparation software, you can still print out your completed tax forms and stick them in an envelope addressed to the IRS. It’s a simple process as old as the idea of paying income taxes.

What is E-Filing?

Last year, the IRS’s e-file processed 95 million tax returns. That’s 66% of all the returns that were filed. E-Filing is simply taking an electronic version of your tax return and sending it using the Internet directly to the IRS data processing center.

Advantages of E-File

There are many, well noted reasons for e-filing. It’s faster, easier, you get your refund quicker, no trips to the post office, no stamps, less chance for error, and the list goes on. It’s obvious that the case has been made for e-filing. But what about security?

At first glance it might seem less secure to e-file your taxes. After all, you are sending your personal information, income data, and credit card or bank account information from your computer, over the Internet to another computer to be processed. That’s not the kind of data you want to be careless with, right?

But it’s actually less secure to mail your return. Data transferred using tax software to the IRS is going to be encrypted. Plus, both the software companies and the IRS have strict privacy policies that their reputations depend upon. Tax returns get lost or stolen in the mail every year.
One advantage of efiling is that tax software programs such as TurboTax, H&R TaxCut or QuickTax (for Canadians) will help you with recent tax changes or new tax deductions which you might not know about yet.
Advantages of Mailing Your Forms

Mailing your return is less expensive than e-filing. There are some people who qualify for free federal tax filing, but most people have to pay a fee to have their taxes e-filed. State e-filing can be especially pricey.

It takes longer. If you owe money on your taxes, the last thing you want to do it rush the job. Wait till April 15th and mail in your paper forms along with a check. Hold your money as long as you can. Mailing will always be the method of choice for those who owe. Especially when the IRS has the nerve to charge a convenience fee for those paying with a credit card.

Who’s Required to Mail in Their Forms?

Lastly, there are some people who have to mail in their tax forms this year. You must file by mail if:

• You are claiming the first time home buyer tax credit on your 2009 return. Since you have to mail in your closing settlement papers, a physical mailing is required.
• Another filer has already claimed your dependent as theirs, and you need to dispute this.
• You have some type of dispute about your date of birth with the SS Administration.
• You are filing an amended tax return.

So what’s it going to be this year? E-File or Mail? I’d love to hear your thoughts in the comments below…

If you want to read more posts from PT then check out his blog PT Money and consider subscribing to the feed.

With tax season in full swing many people are gathering the necessary documents to prepare their tax return. There are many options available to consumers, each with their own pros and cons that must be considered. If you plan on preparing your tax return on your own, you should carefully research each option in order to find the one that is right for you. Here we look at the difference between two popular do-it-yourself tax preparation options – the desktop version and online version of tax software.  If you are considering using tax preparation software such as TurboTax, H&R TaxCut or QuickTax (for Canadians) then this article should be of interest to you.

Ease of use

Desktop version- If you opt for this method of tax preparation you will have to download tax software to your computer from either a CD or tax software download. Installing tax software on your computer is generally easy to do, however there is always the chance that problems may arise if the software is incompatible with currently installed hardware or software. Beyond the initial installation, downloading software to one computer limits the user to that computer only to access their information.

Online version- When you prepare your taxes using the online version there is no software to install, thereby eliminating the chance of incompatibility. You can access your information from any computer using an Internet browser such as Firefox or Internet Explorer. While this can be convenient for users who have limited access to a computer, there is also a risk for those who access their tax return via a public network. If you have no other option and must use a public computer you must be certain to log off of your account and close the browser window completely before leaving the computer.

Affordability

Desktop version- The desktop version is more expensive however this can be the most affordable approach for families. Once purchased the downloaded software applies to up to five people.

Online Version- When you prepare your taxes online it is less expensive initially, however costs can add up if you have to add other options. This can still be the least expensive option for a single individual.

Security

Desktop Version- When you download software to your computer you do not have the same implied security risks as you would entering personal information online. You also have access to your tax return information when you are not online. There is still a risk associated with storing your information locally as your computer and the information contained there can still be hacked into if your anti-virus software is not up to date or working efficiently.

Online Version- Any time you enter personal data online you must first check the security of the site you are visiting. For the purpose of filing your tax return you will likely be on websites that offer the same security that is used by large financial institutions. Before entering any information take the time to review the websites privacy and security policies.

Storage

Desktop Version- When you download tax software to your computer the file and data contained on the file will remain on your computer until you delete the file. It is not uncommon to have to go back to previous tax returns therefore you should keep the software as your data can only be read by the software used to file the return. Since software changes year to year, this can be a problem if you do not have access to the original software. When switching computers you may have to transfer the data from previous returns.  Make sure that you back up your computer files religiously in order to avoid losing data.

Online Version- Websites that offer online tax preparation usually save that information for three years in PDF form. You can access this information online or save it to your computer or removable storage.

As you can see there are differences between the two options that must be taken into consideration when making your decision. Remember that every person has unique needs therefore what works for one individual may not be the best option for another. Pick the method that best suits your personal needs.  Some good software to consider are TurboTax, H&R TaxCut or QuickTax (for Canadians).

Many people would rather have a root canal than file their own taxes every year but with all of the technology now available to assist with tax preparation such as tax return software like TurboTax, H&R TaxCut or QuickTax (for Canadians), the decision to get help or help yourself does require some more exploration. Each method does have some pros and cons. Take a look for yourself and make a more informed decision for this tax year as to whether you should complete your own tax return or hire an accountant to do your taxes.

Complete Tax Return Myself

If math is your forte and taxes seem fun, then by all means go for it on your own. For those a bit more squeamish, there are still opportunities where you can try your hand at it with no risk involved. There are many online sites that allow you to prepare your whole return without actually paying a fee until you are ready to file. You can try it out just to see where you stand and if you are not comfortable with your input, you simply go elsewhere for help.

There are also relatively inexpensive tax preparation software programs such as TurboTax, H&R TaxCut or QuickTax (for Canadians) that you can purchase to make your preparation time shorter and more efficient. If you have your documentation ready and understand the laws, using the software can save you the cost of professional help. Most software will pose enough questions to help you figure out what you are doing and if you are doing things correctly.

Preparing your taxes on your own may be the right choice if your tax situation is pretty straight forward and you have the basic knowledge of income tax deductions you are eligible to receive. You can save money by processing your own taxes and not seeking professional help.

Hire an Accountant to Complete Tax Return

If you taxes are more complicated and require itemization, you might do better with an accountant who is up to the task and has the knowledge to get you the maximum deductions. There are professional accountants and CPAs to hire or you can opt for a chain tax preparation company. Depending on the level of complexity of your tax information, you need to do your research to find out who will best meet your needs at a price you can afford.

Professionals know which questions to ask you that will benefit your return. They will also stand by you in the event something is not correct after filing. If you have questions or concerns about your taxes, you can call on their professional expertise throughout the process. You will need to be organized and ready to get started once you mean with a professional. Some companies will bill for time while others will opt for a flat-fee service.

If you are just starting a new business or had some other dramatic lifestyle change that has affected your finances, it may be wise to seek the help of a professional accountant or tax preparer so you will understand how the changes will affect you and to feel the peace of mind knowing your taxes have been properly handled.

One thing to keep in mind is that an accountant won’t organize or locate all your tax slips.  You still need to do a fair bit of preparatory work if you hire an accountant.

We’re coming up on Valentine’s Day, when the young (and old)’s hearts and thoughts take a romantic turn. In this spirit, my posts for this week and next will all involve love and personal finance. If any other bloggers want to join in on the fun, please send me a link to your post at cheapcanuck@gmail.com and I’d be happy to profile what you’ve written.

Two of my friends have radically different views on dating, both of which amuse me to no end.  I’d like to make clear that I don’t condone their behaviours (although I find it very entertaining).   As Miss Manners has said:  “Shunning scoundrels is one of society’s dues, sadly neglected by those who refuse to pass judgement, and may also have discovered that scoundrels sometimes make lively companions”.  To “set the stage”, each of my friends was unhappily single when I started my PhD, and thanks, in part, to some of my advice (which will form a post next week), both are now REASONABLY happy in relationships.  Neither was raised in Canada (and neither spoke English as their first language) and both are in doctoral programs (they aren’t dummies).

XY

XY took to dating like a kid in a candy store.  I was happy for him when he was seeing a number of women and finally seemed to settle on one he liked.  I was taken aback one day when he told me he had been keeping a spreadsheet of everything he spent on them.  The breakdown was interesting (he only counted half the meals, because he “had to eat too and enjoyed them”, but would count gas driving to meet them – I asked if he factored in maintenance or wear-and-tear on the car, and he did not).  What became VERY interesting is he’d calculate the ratio of money spent to sexual encounters obtained (in my first draft I called this “kisses” euphemistically and counted on  “men of the world” to be able to read between the lines:  there are at least two grandmothers who read the blog somewhat regularly and I was worried the post was getting crass – Mike encouraged me to tell it like it is, so there you go).

Beyond reducing the ratio as low as possible, he had wild dreams of getting his number to $0, or possibly into the negatives (where the woman would have spent more money on him than he had on her).  We’re both pretty frugal, so he’d sometimes accuse me of approaching dating in a similar manner, which I always denied.  I repeatedly told him that my view of dating is quality over quantity.  Spend time with someone you really care about and forget about the expense, instead of going after a number of people you don’t like very much and keeping costs low.

Clearly Nemesis had her way as XY is now dating (and planning to move in with) a woman he’s head-over-heels about.  She has confided in me that he treats her better than any guy she’s ever dated and he almost always insists on paying.

XX

Once XX cranked up her dating it seemed like she actually tore through most of the men who fit what she was looking for in the Waterloo area (she’s since expanded her hunting grounds to Toronto).  She has always been a bit of a mooch (trying to get friends to buy her drinks or food – she’ll go as far as order nothing but water in a restaurant if no one will buy anything for her), but she expanded this to an art form when dating.  After each date, she’d brag to us how much she’d managed to get the guy to spend and how little physical affection she had to provide.  I think her high point was $120 and she gave him a hug at the end of the night.

Her grandest adventure, which XY and I are still in awe of, is that when the relationship ended, the first guy she ever had sex with gave her $10K “for her virginity”.  $10,000!!!  I had trouble GIVING away my virginity…  Just to clarify, it wasn’t like she sold it on E*Bay or a street corner, this was a long term boyfriend who felt the need to “cash out” for past sins as they were breaking up.

After her recent birthday, she went out the next day to try to return each of the gifts she’d received (which filled me with glee as I’d written an inscription in the book I’d given her for her birthday years ago, thus preventing its return – Mwa ha ha ha).

Again, Nemesis has struck and she’s now dating a fellow poor grad student (and gripes regularly about how much it kills her to pay for her own food when they go out).

In Conclusion

XY and XX are two real people (who hopefully never discover this blog).  It isn’t my intention to draw any parallels between their experiences and broader gender stereotypes, I just wanted to share my amusement at how they approach romance.  I thought at one point that they might actually start dating EACH OTHER (and worried that the world would be destroyed in a massive anti-matter explosion if that ever occurred).  They’re room-mates now (in a big house with other people) and seem to get along surprisingly well living in the same place.

Do you have any friends (or personal experiences) with weird interactions between money and dating?

As tax season is underway and people are planning to prepare and file their tax returns, they should be aware of the many changes for the 2009 tax return. From the increase in common tax deductions to numerous new deductions offered in the stimulus program, you won’t want to miss out on money you are entitled to.

Here are some income tax changes for 2009 tax year.

If you want to use tax software to complete your tax return then try TurboTax, H&R TaxCut or QuickTax (for Canadians) which will help guide you through the tax return.

Increases from last year deductions include the following:

Standard deductions have increased for 2009. If you are single, your standard deduction will be $5,700.00. If you are married and filing separately from your spouse, your deduction will also be $5,700. If you are the head of the household your standard deduction will be $8,350.00. If you are married and filing jointly with your spouse your deduction will be $11,400.

Mileage deductions are also up for 2009. Business miles deduction can be claimed at 55 cents per mile, charitable service miles at 14 cents per mile and medical travel at 24 cents per mile.

Earned income tax for low and middle income working families who have at least two children was also increased for 2009 returns. Families will now qualify for a $5,028.00 deduction if their qualifying limit income is $43,415 or less.

New tax credits you should be aware of:

One time $250.00 payment credit for retirees, those that are disabled, disabled Veterans, and government retirees who are do not receive social security benefits. Many individuals already received this payment. Those who did not and qualify can claim this deduction on their 2009 federal income tax return.

Sales tax deductions for new vehicle purchases. If you purchased a new vehicle after February 16, 2009 you could qualify for a tax deduction. The deduction is available only for new vehicles and is limited to the tax paid on the first $49,000 of the purchase price. You must also meet income requirements to claim this deduction.

First Time Home buyer credit for 2009. If you became a first time home buyer, meaning you or you and your spouse had not owned a home in the three years prior, and purchased a home in 2009, you are entitled to a refundable tax credit. Depending on your purchase date and your income the amount and terms can vary. Be sure to check details for your situation before filing.

If you were unemployed during 2009 and collected unemployment you will receive an additional tax break. The first $2,400 you earned on unemployment wages will be tax free.

If you attended and paid for college during 2009 and were in the first four years of your first post secondary education program, you could be eligible for a tax credit. On the first $2,000.00 you paid on your education including tuition, books and related expenses you will receive a 100% deduction. On the second $2,000.00 spent you will receive a 25% deduction. Some people will not qualify for this deduction based on household income.

Tax credits are also available for qualifying energy efficient purchases during the 2009 tax year. Windows, insulation, solar energy are some of the items that qualify.

As I mentioned recently, I purchased an iPhone 3GS cell phone.  This is one of those fancy “smart phones” which not only can be used like a normal cell phone, it also has internet access and a pretty good camera (still and video).

It wasn’t long ago that I posted about my new pay-per-month 7-11 phone which was a pretty good deal.  See this cellular plan deals comparison for a better idea.  I still have the 711 phone and plan to keep it (it doesn’t cost anything to keep it after all).

The reason I went for the iPhone was for the internet access which I can use during work hours.  Now, I don’t plan to spend half my work day surfing on my phone but I would like to be able to do a bit of surfing without my employer knowing about it.  I’m not overly worried about being fired for internet usage at work, but it does make me nervous sometimes.  The other problem is that my internet at work is quite limited and I can’t access a lot of sites like online email.
The other reason is that I blog anonymously because I don’t want my employer to know about my sites.  Having access to my sites and the backend on the iPhone will help ensure that.

It also allows me to manage my time a bit better – running 4p means more stats, emails etc and it really helps if I can get some of that stuff taken care of during the day.  I can do it during my commute or lunch hour and then it helps save some of my home time.

My iPhone deal

The phone itself was $199 with service fees of $57.50 per month with the first month free.  This works out to an average monthly cost of $56 over the 3 year plan.  I have a 1GB data plan.  I have no idea if this is enough or too much – it depends on how much surfing I do and the size of files I send and receive.  I get 200 minutes of phone time a month of during the day and I chose the Rogers My5 option which means you pick 5 phone numbers in Canada and get unlimited minutes to those numbers any time of the day.  This was less expensive than I thought it was going to be although it’s a great deal more than the 711 pay-as-you-go plan.

If you order this phone from Rogers (and probably anywhere else) I strongly suggest phoning rather than get it off the internet.  When I called I told the guy the plan I was interested in and then I didn’t even have to ask and he waived the $35 activation fee, gave me an extra 50 minutes, gave the first month free and added 500 MB to the data plan.

I’m sure these upgrades are pretty standard, but had I ordered from the internet I wouldn’t have gotten them.  I have no idea why Rogers would give a better deal if you phone since it seems to me that it would be cheaper for them to have clients order the phone off the internet – but what do I know?

How do I like the iPhone?

I love it.  I was worried that the surfing wouldn’t be very good because of the small screen but it’s actually quite good.  I can do pretty much all the surfing I want to do and although it’s slower and not as convenient as using a computer, I’m pretty happy with it.

I don’t love the onscreen keyboard.  It’s just too small and typing with 1 finger is frustrating for someone like me who can type quite quickly.  For this reason I don’t do as much commenting on other blogs during the day as I’d like.  Even emails are tough to write unless they are very short.

iPhone applications

To be honest, I haven’t figured out how to download applications to my phone yet so I’ll have to report back later on this one.    I know there are lots of apps which would probably improve my iPhone experience but for now I’m happy just learning how to use the basics.   Jordan tells me that jail breaking the phone allows for a lot more apps and functionality so I’ll be checking that out eventually.

Cheaper options to iPhone full service plans

I was telling to Mr. Cheap about the phone and he mentioned that you can buy an iPhone without a service plan (which is quite expensive) and put in the phone chip from a 7-11 pay-as-you-go phone which would allow continuation of the very cheap 711 plan.  You can then use the phone to surf the internet anywhere there is a wi-fi signal such as a coffee shop.

Save on data transfer amounts

This will probably seem pretty basic for experienced smart phone users but I don’t think it is worth paying too much for a larger data plan.  If you download or email large files such as music, videos etc and use the smart phone cell network then it will count against your data plan usage.
The way to get around this is to do all your heavy data transfer when you can connect the phone to a wi-fi network.  That way your data usage is not affected.  Another strategy is to do the downloading on your computer and then synch the iphone to the computer which will move the large files onto the cell phone at no extra cost.

Any smart phone users out there?  Why did you buy one?  What do you like about it?

We’re coming up on Valentine’s Day, when the young (and old)’s hearts and thoughts take a romantic turn. In this spirit, my posts for this week and next will all involve love and personal finance. If any other bloggers want to join in on the fun, please send me a link to your post at cheapcanuck@gmail.com and I’d be happy to profile what you’ve written.

I’m a feminist (of the Cathy Young brand of equality feminism, not the cuckoo-for-coco-puffs Andrea Dworkin or difference feminism brands of feminism).  Sometimes I’ve grappled with the best way to divide expenses within a romantic relationship.  As an ideal, splitting the costs evenly seems to make sense, but I’m certainly aware that often two people will differ in their disposable income or earning potential.  The actual mechanics can sometimes be difficult, with each person thinking they’ve paid more or becoming amateur accountants trying to balance the various expenses.  In the past, I’ve typically taken a generous view and offered more than strictly half (and have never come to regret it), and have had the good fortune of having mostly dated women who insisted on keeping things fairly divided.

One couple who I was friends with ran into a problem with this while dating as undergrads.  He had a fairly “macho” view of masculinity and dating and insisted on paying all the bills whenever they went out.  Eventually it got to a point where dating was costing more than he could afford.  He discussed this with her, and her reaction was that she wanted things to be more fair and was happy to contribute when they went out.

The guy initially thought this was ok, but told me he was humiliated whenever she paid and he would have to slip off to the washroom because he was so uncomfortable with her paying the bill.  I thought this was kind of lame of him (get over it!), but I thought their solution had some merit.

Basically, they opened up a joint bank account, got a debit card for it, and would always add equal amounts of money to it (so when it got low they’d add $150 each to it or whatever).  They’d then use it to buy anything that they wanted to pay for “as a couple”.  Instead of having to keep a mental tally (I paid $39 for dinner two nights ago, then you paid $21 for the movies, but I paid $7 for the popcorn…), by using the account they were guaranteed that they’d split the bills down the middle.

The other “benefit” was somewhat lopsided.  He would always pay with the communal account, giving the appearance that he was treating (when she was stealthily paying half).  If she didn’t protest, why should I?

All sorts of variants are possible on this for all sorts of situations.  Instead of setting up a joint bank account it’d be possible for one person to use a credit card solely for couples activities, then they split the bill every month.  In addition to a romantic couple, this approach for splitting expenses could be used for friends (2 or more) who are traveling together and want to split all expenses.

If one person earns more than the other, they can decide whatever split makes sense, then still use this approach.  If the girlfriend earns double her boyfriend’s salary, she can put double whatever he does into the account and they’ve neatly split all bills 1/3rd to him and 2/3rds to her.

There certainly can be dangers to shared accounts.  We’ve probably all heard stories about one member of a couple being left with bills after the relationship ends (whenever I see one of those court shows on TV it seems these are almost the only cases they get).  You’d also want to limit how much cash and credit was available in such accounts in case someone goes nuts (I recently mentioned in a  post about the brother of a friend who had $10,000 of his money drained from a joint account after his fiancé went on a weekend gambling binge).  There’s also the chance that your partner might make an impulse buy with the joint account (shoes he just has to have, or her buying drinks for men with loose morals in bars).  If your partner is doing this sort of thing (or you’re worried they will), do you really want to build a life together with them in the first place?

First off – last week we had a competition for two $25 Smarty Pig gift cards and the winners were Debbie and Kate.  They have been contacted and will receive their cards shortly.   SmartyPig is only available to Americans but for any Canadians looking for a $25 bonus for opening up an account check out my ING $25 bonus page.

Some links

Thicken My Wallet had a great post on the riskiness of starting your own business.  He argues that starting a new business is not as risky as the general public assumes it is.

BBC News – Why do people often vote against their own interests? I really liked this article since it addresses something I’ve wondered about – the opposition to health care reform in the US by people who would benefit from it.  I don’t know how many times I’ve heard the sentiment “I don’t want the government deciding my health care”.  Meanwhile, right now it’s the insurance companies that decide their healthcare (if they can afford the premiums).

Fantastic roundup at Len Penzo’s blog.

Million Dollar Journey gives his views on the Talking About Finances With Your Aging Parents … or Grown Kids

Preet is Severing The Link Between Price and Weight Part I

Financial Blogger talks about fixing up your house for a better sale.

Canadian Capitalist recommends watching The card game on PBS.

The Intelligent Speculator has the best oil stock picks for 2010.

ABCs of Investing wrote about money market mutual funds.

Carnivals

Carnival of Personal Finance
Carnival of Mutual Funds 4 :Beat Mutual Funds