If you’re like many women, you’re beginning to feel a little panic as you look at the calendar and realize there are only a few weeks until Thanksgiving and then a few more until Christmas/Hanukkah!

Anxiety comes as your mind reviews the many tasks (and few hours) that lie ahead. More apprehension settles in if you’re concerned about having enough money to do all the things you’d like, and still be able to keep up with the bills!

Well, don’t panic! I’m a practical person who operates well with lists, so grab a pen and paper and let’s make a plan.

• First, write the dates on your calendar of every event, program, party and family gathering you expect to attend. If you plan to bring food or gifts, write those down too.
• Write in when your bills are due, and promise to pay them on time.
• Determine your holiday budget and promise not to go one penny over it. Get a free copy of my Holiday Spending Plan.
• Make a list of who you will give gifts to, and what you’d like to give them. Get a free copy of my Holiday Gift List.
• Plan your menus now.
• Do as much grocery shopping now as you can. Cook and bake ahead as much as you can. It’s not too early to start!
• Buy or make as many gifts ahead as you can, get them wrapped, labeled and hidden.
• Buy, make, write or print out any Holiday greeting cards you want to send or use Send Out Cards. Send 2 cards for free!
• As soon as Thanksgiving is over, go through your Holiday decorations to purge, add or revive
• Get a copy of the new e-book Stress Free Holiday Entertaining to help you with all the details
• Remember to keep things simple and spend time relaxing with the kids and your spouse.
• Plan now to enjoy the holidays!

Sandra Jensen makes family meal time a priority and enjoys putting homecooked food on the table even when budgets and schedules are tight. Be sure to pick up Sandra’s newest Stress Free Holiday Entertaining ebook where she’ll provide you with tips and tricks to help you breeze through the Holidays and enjoy your friends and family for once.

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It’s November already! Yikes!

Oriental Stir Fry
One of the simplest recipes that are incredibly satisfying is Oriental stir fry. You can make an Oriental stir fry with chicken, pork, beef or without any meat. Using one simple frying pan or wok, a variety of vegetables (fresh, canned or frozen), some stir fry sauces and a side of rice- you’ve got a great supper.

Ingredients:
1 pound of chicken breast (cut into cubes or strips)
2 cans of oriental style vegetables (usually includes water chestnuts, green beans, broccoli, baby corn, carrots, etc)
4 to 8 ounces of stir fry sauce (sweet or salty your choice)
4 servings of rice
Olive Oil

Directions:
Cook boil in bag rice on the side as directed. In an oiled frying pan or wok add cut chicken, cook moderately and then mix in vegetables. Stir frequently with a wooden spoon adding a few spoonfuls of sauce every few minutes. Stir fry for about 10 minutes or until cooked completely through. Serve on a bed of rice.

Maple Ham Steak
Ham steak is incredibly easy to make and for many families an awesome meal. You can buy individually cut ham steaks sold in many grocery stores. Or if you prefer, you can buy a big ham and slice it into ½ to ¾ inch thick steaks.

Ingredients:
4 Ham Steaks
4 ounces of brown sugar
8 ounces of maple syrup
4 Yams (sweet potatoes (fresh or canned)

Directions:
Rub 1 ounce of brown sugar into the ham and set it in an oven for about 25 to 30 minutes at 400 to 425 degrees F. (or as directed). A few minutes before the ham steak is complete, you can drizzle some maple syrup on top of the ham steak or cautiously warm the syrup in a microwave and serve as desired. Ham steaks go great with yams (sweet potatoes). You can cook them in an oven with your ham steak, starting them about 15 minutes before you begin cooking the ham.

BLT Sandwich
One of my family favorites is the BLT sandwich. While bacon is perhaps not the healthiest food available, you can choose to swap good old fashioned bacon with turkey bacon or even chicken bacon. These products have come a long way since they were introduced and your family may actually prefer them to traditional bacon.

Since the BLT sandwich is very easy and only includes bacon, lettuce, tomato, bread and mayo, make sure you buy only top quality ingredients including nice thick bread (my family loves “Dave’s Killer Bread”) and fresh lettuce and tomatoes.

Ingredients:
1 Loaf of White, Whole Wheat or Rye Bread
1 head of lettuce
4 beefsteak tomatoes
1 pound of bacon

Directions:
On a griddle cook one pound of bacon. Pat dry removing any excess grease. Now add mayo to two pieces of bread and then top with a sliced tomato and some lettuce. Garnish with a pickle, some olives and some pretzels or chips.

Christine Steendahl Is The Founder Of Dine Without Whine – A Family Friendly Weekly Menu Planner. Eliminate Your Dinner Hour Stress And Re-Discover The Pleasure Of The Dinner Hour! Get a Free Sample Menu at Christine’s site. Happy family eating!

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Simple Recipes Your Family Will Love

They have a complete Holiday Recipe Guide that you can download (email requested) or have mailed to you. If you don’t want to give that info, you can also download a few sample recipes and then decide.Grab your free recipes here..

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Sample Carnation Holiday Recipes Or Guide

Here are a few free PDF downloads that may help out. Just left-click on the images at the bottom to save the item to your computer. (These were designed for kids in grades 6-9.)

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Helping Kids Make The Right Decisions

This has always been important, but with this year’s economy, Sandra Jensen, author of Guide To stress Free Holiday Entertaining says we can’t emphasize this enough!

In an unstable economy, it is dangerous and foolish to acquire debt. Especially now we should be managing our incomes as carefully as we can, and we should be saving for emergencies.

If these things concern you, or if you spent too much money on your Holidays last year and don’t want that burden hanging over your head again next year, now is the time to change that!

• Plan where and how you’ll celebrate the Holidays
• Determine to pay your November, December and January bills on time.
• Make your menus and grocery lists.
• Make your gift lists.
• Be realistic with how many people you can bless.
• Be realistic as to how much you’ll spend on each gift.
• Announce to your family and friends any changes you’re making this year. (Do it now before people start making purchases.)
• NEVER go into debt for gifts!

Be thoughtful and get creative with your gift-giving:

• Shop for bargains.
• Shop e-bay and other on-line discount places.
• Try making some of your own gifts.
• Give coupons for gifts of your time or talents.
• Remember, and teach your children the true meaning of Christmas.
• Practice selflessness, and stop selfishness.

Thanksgiving should be a great time of reflecting on the many things we have to be thankful for! Christmas should be a beautiful time of remembering the gift God gave us, His Son, Jesus Christ.  Hanukkah is the Jewish festival of lights. New Year’s should be a fun time of recalling triumphs of last year, and making plans for the new year.

These should be happy, peaceful times, not stressful or dreaded. The burden of debt is a real joy-stealer.

Decide NOW not to let debt rob you of your Holiday joy!

Sandra Jensen makes family meal time a priority and enjoys putting homecooked food on the table even when budgets and schedules are tight. Be sure to pick up Sandra’s newest ebook Stress Free Holiday Entertaining where she’ll provide you with tips and tricks to help you breeze through the Holidays and enjoy your friends and family for once.

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Paying for the Holidays

In the traditional marriage where the husband is the main wage earner, one concern is maintaining health insurance for the ex-wife after divorce. This is an important consideration if the husband is the one without health insurance, too, especially if they have pre-existing conditions.

It is not uncommon for women over 40 years of age to develop severe health problems. Some become almost uninsurable, at least at a reasonable cost. This is a real concern where they are suddenly on their own and responsible for acquiring health insurance.

The COBRA law passed in 1986 allows a spouse to continue to get health insurance from their ex’s company if it has at least 20 employees, for three years after the divorce. The normal COBRA provision states that, if an employee is fired or leaves a job, he or she can get health insurance from that company for 18 months. However, in a divorce, it is extended to 36 months.

Linda and Bob are getting divorced. Assume that Linda decides to continue health insurance under COBRA from Bob’s company. Linda must pay the premium as agreed. If she misses a premium payment, the health insurance company can drop her and they do not need to reinstate her.

Typically, Linda will not get the discounted group rate but will be charged the full rate. It is important to shop for health insurance, even though the COBRA provision may supply a quick solution to health care coverage, it may not be the best. It may be purchased at a lesser cost somewhere else.

There are two drawbacks to using the COBRA health insurance provision:

1. It’s usually very expensive because you’re getting the corporate health insurance plan but not the corporate billing rate.
2. If you have an illness or injury during the 3 years, you may not be insurable when the 3 years of COBRA is over.

If you’re healthy, I recommend getting your own health insurance policy NOW, even if you’re not yet divorced. Then if something happens, as long as you pay your premiums, you are covered. Otherwise, at the end of three years, COBRA drops you and you have to start shopping for your own insurance. At that time, you may not be insurable.

Even something like a breast cyst, anti-depressant medications, back problems or headaches can disqualify you for health insurance in some states. A friend of mine used her husband’s health insurance for acupuncture to relieve her stress and she is now uninsurable! Doctor visits, therapy, chiropractic, chiropractic and massage that’s paid for with insurance remains in your medical records when you apply for health insurance.

Most states have insurance for those who are uninsurable and cannot get health insurance any other way.  This insurance is often very costly. It is better to look ahead and get individual health insurance for a lower premium while you are still healthy than to gamble that you will still be healthy three years from now.

I know this is one of the “unfair” things about getting divorced. Health insurance is critical to your future financial, emotional and physical well-being. Our current health care laws and systems are a national disaster but you must work to make sure you and your health are taken care of.

A few legislative changes that would work in your favor are:

• A Public Option for health insurance purchases
• Elimination of disqualification for pre-existing medical conditions
• Portability – being able to take your current medical insurance to another job or another state
• Reasonable rates for self-employed or unemployed

This is a good time to let your Senators and Representatives know you need these changes to be made because all Americans need safe and affordable health insurance.

In the meantime, seek out an independent health insurance broker to find an individual policy for yourself NOW. Put it at the top of your list of “to do’s”!

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Divorce and Your Health Insurance

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Should you go searching for that extra 1%?

Whether you are an individual taxpayer or a business owner, you can avoid headaches at tax time with good records because they will help you remember transactions you made during the year.

Here are a few things the IRS wants you to know about recordkeeping.

Keeping well-organized records also ensures you can answer questions if your return is selected for examination or prepare a response if you are billed for additional tax. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, you should keep any and all documents that may have an impact on your federal tax return.

Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:

• Bills
• Credit card and other receipts
• Invoices
• Mileage logs
• Canceled, imaged or substitute checks or any other proof of payment
• Any other records to support deductions or credits you claim on your return

You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples include:

• A home purchase or improvement
• Stocks and other investments
• Individual Retirement Arrangement transactions
• Rental property records

If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Examples of important documents business owners should keep Include:

• Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
• Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
• Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
• Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks.

The IRS estimates it takes the average taxpayer almost 30 hours to get their tax paperwork together! Start now and spread it out so it will be much easier and less stressful on you. Who knows, you might even find a few more deductions!

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Keeping Good Records Reduces Stress at Tax Time

Every year, the IRS sends millions of letters and notices to taxpayers. Many taxpayers will receive this correspondence during the late summer and fall. Here are eight things every taxpayer should know about IRS notices – just in case one shows up in your mailbox.

1. Don’t panic. Many of these letters can be dealt with simply and painlessly.

2. There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.

3. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.

4. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.

5. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.

6. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.

7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry.

8. It’s important that you keep copies of any correspondence with your records.

Note: If you had a tax preparer do your return, call them immediately!

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Eight Things to Know If You Receive an IRS Notice

Is your Home or Small Business saving you lots and lots of money – money you’d be paying in taxes?

That’s right – you can save buckets of money!

A Home/Small business gets extra, special, legal tax benefits from the IRS.

Here are a few of the things you must know:

• How to get a big tax credit to cover start up costs for a new business
• How your business losses can reduce your JOB income (or your spouse’s)
• Why you don’t  have to earn a profit in order to deduct expenses
• How you can deduct health expenses you haven’t even thought of
• Why doing your regular errands can pay for your car
• How to get your tax savings back right now!
• And more!

You’re invited to attend a very special teleclass sponsored by Just About Perfect – the program that can show you how to live the life of your dreams!   All Just About Perfect members can attend this class for free and through August, you can get a one week free membership.

You’ll be able to take advantage of all the Just About Perfect resources to get support for what’s stopping you from having your Just About Perfect life including unlimited laser coaching, live and recorded teleclasses and our exclusive Just About Perfect software.

Date:     Thursday, August 27^th

Time:     4:00 pm Pacific/7:00 pm Eastern

Sign up now for your free week at Just About Perfect and learn how to save Buckets of Taxes, too. Here’s the link: http://www.MendYourMoney.com/Perfect.

P.S. If you like Just About Perfect, you can let your friends know and earn referral bonuses, too!

P.S. It’s your legal right to pay as little tax as possible, and these strategies are all legal.

*This information is offered for educational purposes only. In no way is this meant as legal or tax advice. The reader is expected to contact his or her own legal or tax advisor for specific advice to his or her situation.

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Is Your Home/Small Business Saving You Buckets of Taxes?

So, what does it all mean?

You have to purchase and close on the home before December 1, 2009 so there’s not much time left to find one, get financing and get it closed before then. If you’re building a home, you must be living it in by December 1, 2009.

If you haven’t owned another primary home in the last 3 years, you are a first-time home buyer and you can get up to $8,000 (or 10% of the home price for homes less than $80,000) refunded to you at tax time. If you’re married, the law requires both of you to be eligible.

For example, if you haven’t owned your principal residence in the last 3 years but your spouse did, you won’t qualify. If you owned a vacation home or rental property and didn’t use it for your primary home, you will qualify.

If you would have gotten a refund, the $8,000 will be added onto it. If you would have owed taxes, you’ll get the difference. For example, if you owe $500, you’d get $7,500 back.

This must be your primary residence and you have to live in it for 3 years (or you’ll have to pay it back) and you can’t buy it from a close relative. It’s OK if you rent out part of the house as long as you live there, too. It cannot be purchased for a rental or a vacation home.

Any home that is going to be your primary residence will qualify including single-family detached homes, townhouses, condos, manufactured homes, even houseboats!

You’ll get the money back when you fill out your 2009 taxes. Your tax preparer can help you with it or you can use IRS From 5405.

If you are married and have an adjusted gross income (that’s not your take home pay) over $150,000 or single and have over $75,000 in adjusted gross income, you may be limited in using the $8,000 refundable tax credit. Again, your tax preparer can help you figure it out.

Note that the Internal Revenue Service (IRS) has programmed its computer to be on the lookout for fraud. In a statement released at the end of July, the agency said it uses “sophisticated computer screening tools to quickly identify returns that may contain fraudulent claims for the first-time home buyer credit.”

What’s different about this home buyer tax credit than the one that was available last year? This year, you don’t have to repay it! Last year, it was really a 15 year interest free loan.

Can I use the credit as part of my down payment? If you’re getting an FHA-insured mortgage, you may be able to use the tax credit toward the home purchase and for certain closing cost expenses. Other agencies and non-profits have created plans to help you access the money before tax time. You can also reduce your income tax withholdings so that you’ll have more money in each paycheck. Note: this doesn’t affect your state income tax obligations.

If you haven’t owned your primary home in the last 3 years, there’s not much time to dilly dally around. Find a realtor and purchase a home to qualify for up to $8,000 in tax credits.

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Time is Running Short for First-Time Home Buyer Credit

Anyone starting a new business this summer should be aware of their federal tax responsibilities. Here are the top seven things the IRS wants you to know if you plan on opening a new business this year.

1. First, you must decide what type of business entity you are going to establish. The type your business takes will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online at IRS.gov.
4. Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.
6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.
7. Visit the Business section of IRS.gov for resources to assist entrepreneurs with starting and operating a new business.

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Top Seven Tips for Taxpayers Starting a New Business

Most of us don’t bother to look at our medical bills. We just assume that they are correct and that our insurance company paid them. The thought of second guessing or challenging them never crosses our mind.  Yet a Harvard Law & Medical Study indicates that a high percentage of them could be incorrect.  Now, I’m not saying that all of them are wrong, just that they warrant checking.

Here are ten reasons why you should check your hospital bill for errors and overcharges.  It is in your best interest to check each bill for these ten reasons.

1.  Was it you? If you are a Jr. you might be confused with a Sr. when rushed registrars enter data from a pre-existing patient. I have observed several times, registrars confusing patients with the same first and last names.

Make sure you were there and actually received the services/procedures on the date listed on the bill. Keep all your medical appointments on a calendar and double-check your calendar dates with the dates shown on the bill.

2.  Duplicate billing.  Did your doctor order only one test, but you were billed for two? Entering a bill for services/procedures takes concentration and data entry errors can result in a patient being charged more than once for the same service, supply, or medication. Check with your physician to verify how many tests were ordered on the day in question.

3.  Hospital stay days.  A hospital stay charge should only be from your admission date until your discharge date. You should not be charged for the day you were released to go home (discharge date).

4.  Wrong room. You’ll also want to be sure you are charged for the room you were in. You should “not” be billed for an ICU room if you were in a semi-private room; nor should you be charged for a private room when you had a roommate.

5.  Operating time. Hospitals bill for more time than they should. They often bill for operating room set up or clean up/breakdown. These charges are included in the cost of the operating procedure and are therefore disallowed. Also, the operating room time billed should be the same as the anesthesia time billed.

6.  Over coding. This is where a more expensive procedure/service is charged when a lesser one would do. For example, a name-brand medication instead of its generic alternative, or a longer office visit that includes paper work time when only the actual face-to-face time should be charged.

7.  Data entry errors.   Data entry errors caused by hitting the wrong key or too many keys, or interpreting the given information incorrectly, can cost you thousands of dollars because of one innocent mistake.

8.  Overcharging. Are there charges on your hospital bill for a “Mucus Disposal Receptacle” (box of Kleenex)? A “Dental Cleanser” (toothbrush)? A “Dressing Change” (change of bandage)? “Tubing” (IV)? All these charges should be covered in the cost of your procedure and not broken out separately. Surgical instruments should not be charged to you.

9.  Insurance coverage limits. Does your insurance plan have a cap on paid medical costs? If so, checking your medical bills for errors, overcharges, and bogus charges can save you thousands of dollars and ensure you don’t go over your insurance coverage limit.

10. Protecting yourself and your insurance company. Don’t pay more than you owe! Ninety percent of hospital and medical bills contain errors and overcharges. According to the U.S. government, millions of dollars worth of medical billing errors and bogus insurance denials go undetected each year.

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Medical Bill Detectives is a Subsidiary of Medical Bill Consultants^TM, LLC.

We’ve been mentioned in the January 2008 issue of “O” magazine and on an August, 2008 edition of CBS Evening News.

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10 Reasons for Checking Your Medical Bills

The House authorized another $2 billion dollars with the Senate expected to vote on Monday. If you’re interested in participating, negotiate your deal this weekend as all deals will be honored according to the White House.

CNN is also recommending that you “make sure you don’t sign a waiver that forces YOU to pay the voucher if your deal doesn’t go through. And, have the dealership wait to destroy your old car until they are absolutely sure that you are getting the voucher money.”

Have you heard the federal government will give you cash for your “clunker”? It’s true!

Officially known as Cars Allowance Rebate System (CARS), it’s typically known as “Cash For Clunkers” and you can get $3,500-$4,500 in credits if you trade in your old car or truck.

Scam: Scammers are getting folks to pre-register or provide their Social Security number to be part of the program.

Truth: You don’t have to register or obtain any sort of coupon or voucher. The deal will deduct the correct amount of the credit when you purchase.

Facts: The CARS program only applies to the purchase or lease of a new vehicle Here’s more:

1.       Your vehicle must be less than 25 years old on the trade-in date

2.       Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)

3.       Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in

4.       Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.

5.       The program requires the scrapping of your eligible trade-in vehicle, and that the dealer disclose to you an estimate of the scrap value of your trade-in. The scrap value, however minimal, will be in addition to the rebate, and not in place of the rebate.

For more information on CARS, visit www.cars.gov or call the CARS information hotline at (866) CAR-7891 (227-7891).

The Real Question, Though, Is…

Should you purchase a new car under this program?

Basically, the answer is that you shouldn’t use the new program unless you were already planning to make a new car purchase.

For one thing, you will only get scrap value for your trade-in. So, if you have a 2000 Jeep Cherokee 4 door AWD, Edmonds says the trade-in is $3289. But if you’re doing Cash for Clunkers, you’ll get the maximum credit + scrap value. So, you may not actually only much more than you would have if you had traded in your Jeep.

And, you’ll have a payment where you didn’t have one before.

At Edmunds, they have a calculator to figure out how long it will be before you pay for the car just with gas savings.

Let’s run a scenario of purchasing a 2010 Toyota Camry Hybrid and giving up your 2000 Jeep.

The cost of the Toyota Camry Hybrid is $26,150 – $4,500 (maximum credit) and let’s say $500 in scrap value. So, the new car cost would be $21,150.

At 33 mpg hwy (your mileage overal would undoubtedly be lower) for the Camry and driving 1,000 per month and assuming $4.25/gallon for gas, it would take at least 137 months (11.5 years) before you’d break even. And that’s not counting any additional insurance cost.

And, your car payment would be around $408 ($21,150 financed at 6% for 5 years)!

What could you do with $408?

If you can afford $408 per month, you could pay down debt or start saving for the new car.

Bottom line is that this program is designed to move cars. You’re the only one who can really determine if it’s a good program for you and your family.

P.S. Don’t ever give out your Social Security number or other personal information unless you initiated the call or contact.

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Newest Scam On the (Car) Block

Here’s what it means on a monthly basis:

Balance:                      $10,000
Old Payment (2%):      $200
New Payment (5%):    $500

Previously, the amount of the payment was approximately 2% of the balance - now it will be 5% and the only way you can keep a lower payment is to close the account and take a higher interest rate.

I moved my car loan to a Chase card 2 years ago at 3.99%. Last month the payment was $187 and I paid $301.

Next month the payment will be $472!

I think I was targeted because I haven’t used the card for any purchases (that
wasn’t a requirement of getting the card or doing the balance transfer) so they’re trying to get their money back sooner and be able to use it on a more profit generating customer.

After months of watching the the banks get bailouts because they’re “too big to fail” all the while reducing credit limits and increasing interest rates, this is
the next version of “Flipping the Bird” at American consumers.

Along with the bailouts have come bank mergers so there’s less competition and they’re not worried about going bankrupt.

By the way, what they’re doing is completely legal and the new Credit Card Act of 2009 does not address this situation.

What can you do?

• Expect more banks to follow Chase’s lead - so it’s time to review your credit card balances and step up your efforts to pay them off.

• Look for smaller or local banks or credit unions willing to offer better deals.There’s a big vacuum coming in this area and hopefully other financial institutions will see opportunities the “big boys” are leaving on the table.

• Let your Senators and Congressional representatives know you are outraged when the big banks continue to take advantage of the American taxpayers.File a complaint with the Federal Trade Commission (FTC) at https://www.ftccomplaintassistant.gov.

• Be sure to read any letters or correspondence from your credit card company because it’s probably telling you that they’ve changed the terms.

• Adjust any automatic payments you’ve set up or they’ll sock you withlate payments and penalty interest rates.

• Stop using the card until the balance is paid off. Don’t close the account unless you have to because it can affect your credit score.

• If these increases in payment will put you over the edge, consider talking to a bankruptcy attorney. If bankruptcy is in your future, it’s best to do it early so you can get it behind you and move on to restoring your credit.

In the end, the days of easy credit with low interest rates and big limits are gone for now. Look to your spending plan to live within your means and get the debt paid off.

Listen to my thoughts on the changes we’ll see with the new Credit Card Act of 2009 at http://www.MendYourMoney.com/perfect.html.

Want to see how soon you can get debt-free? Find out with my Pay Debt Quickly kit!

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Did Your Bank Flip You “The Bird”?

Question: I have an extremely low APR (6.24%) with one credit card company, and am pretty good at making my payments on time, if not early. However, another credit card company has raised my APR to 29.99%. They’ve offered to close my account at a set APR of about 3% or so but I’m afraid of how it will affect my credit. What can I do about it? Thank you! ~ Renee

Answer: Hi Renee, that’s a great question. Normally I would discourage you from closing your credit cards because it can hurt your credit score.

However, if I was in this situation, I’d take the hit on my credit score for the short term and get that 3% interest rate! If you owe $10,000 and your minimum payment is $260, it will take you 11 years and you’d pay $24,231 in interest!

If your interest rate is 3% and you continue to pay $260, you’d  have it paid off in about 3 years and the total interest would be $527! That’s a big difference!

In time, your credit score will recover and, you’ll save a lot of money in the meantime!

You may want to get my Pay Debt Quickly so you can create your own debt payoff plan. It’s fun to see what a change in interest rate or increasing your payment will save you in interest charges!

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Should I Close My Credit Card?

Last month, President Obama signed the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CCARD) also known as the Credit Cardholder’s Bill of Rights that’s been called “sweeping legislation that reforms the credit card industry” and a homerun for consumers. Is it? Let’s see…

Here’s some good news for consumers:

• Credit card companies can’t raise your rates on existing balances unless you’re 60 days behind.
• If the rate does go up, you can get the old rate back if you pay the minimums on time for 6 months.
• They can’t raise rates for at least a year after you open an account.
• If you close your account, the interest rate is frozen.
• Teaser rates must last at least 6 months.
• If you have multiple interest rates, anything more than the minimum goes to the balance with the highest interest rates.
• Cardholders must be given the option of having a fixed credit limit that cannot be exceeded, and card companies cannot charge overlimit fees on cardholders with fixed limits.
• Cardholders may elect to have transactions that would cause them to go overlimit declined.
• Overlimit charges can only be charged when a purchase, rather than a fee or interest charge, causes the credit limit to be exceeded.
• Overlimit charges can only be applied once during a billing cycle.
• No interest can be charged on fees (such as late fees or overlimit fees)
• Your bills must be sent out 21 days before the payment due date (current requirement is 14 days)
• No one under 21 can get a credit card without a co-signer or proof that they are able to repay the credit (a job)
• You can pay your bill by mail, phone, electronic transfer or online without additional cost unless you need to pay at the last minute.
• Consumers must get 45 days notice of any change in the terms.
• Gift cards can’t expire for 5 years and they can’t charge fees against the balance for not using it.
• No more universal default (one company could increase rates if you had a late payment to another creditor even if you had a good on-time payment record with the first company)
• They have to tell you how long it will take to pay off the balance if you only make minimum payments and the total amount of interest you’ll pay.

Here’s the bad news…

• Changes don’t go into effect for 9 long months.
• Expect credit card companies to jump up your rates between now and then even without a late payment.
• Credit card companies say that reward programs will be canceled, low-interest teaser rates won’t be available and overall credit may be harder to get. They may also re-institute annual fees and try to find other ways to increase their bottom line.

What should you do now?

• Pay your debt on time. This has always been important but is even more important now. Don’t give them a reason to hike your interest rates.
• Create a plan to pay your debt off. This is the hardest area for most people to do because they just don’t know how to pay their debt off in the most efficient and cheapest way. Check out my Pay Debt Quickly kit which WILL create a month-by-month plan for you to follow – it’s easy once you have a plan!
• Don’t close old accounts and keep all your cards active by putting a couple of small purchases on them every month. Pay off, of course.
• Watch your statements every month because some of the credit card companies may actually start implementing these changes even before the deadline.
• Watch your mailbox for instructions from your creditors regarding choices you’ll need to make to your account.
• Use your points or other rewards now because the plans are sure to get less generous or even eliminated.

It’s about time credit card holders are finally getting a break!

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Are Credit Cardholders Finally Getting A Break?

• Tax Trap #1: Unemployment Income isn’t taxable. Sorry, the tax man does  wants a cut of the action even when you’re unemployed. The easiest way to handle the taxes is to have them withheld just like a paycheck.

• Tax Trap #2: Killing Your Golden Goose When You Raid Retirement Accounts. The last accounts you want to tap are your retirement accounts for several reasons. Since the amount you take out is taxable, the IRS requires that 20% be withheld to cover the taxes.So, if you request $10,000, you’re only going to get $8,000. Since the $10,000 would be added to any other income you have for the year, you may be pushed into the next tax bracket (see Marginal Tax Brackets) and the $2,000 may not even be enough.PLUS, there will be 10% penalty that can’t be reduced by any other credits.Your state will tax the income and may also charge penalties for withdrawing early.

• Tax Trap #3: IRAs can cover certain expenses such as re-training expenses paid directly to a qualified educational institution, health insurance premiums or even early retirement, BUT, you have to handle the withdrawals exactly right or you’ll be socked with taxes. Check with your tax preparer and/or financial advisor.
• Tax Trap #4: Debt Settlements are taxable unless you fall into certain categories. So, if you have a $10,000 balance and the creditor takes $5,000 and call it paid off, you’ll receive a 1099-C for the amount of debt that was canceled. Be sure to take this document to your tax preparer. There are some special rules for debt that is canceled through foreclosure. Debt discharged through bankruptcy are not taxable.
• Tax Trap #5: 401(k) Loans are taxable if you leave your job (for any reason). If you borrow from your 401(k) and are laid off or leave for any reason including disability, your loan becomes due immediately. If you are unable to pay it back, it will be considered a distribution and you will be taxed on it and pay the 10% penalty. However, you would have received the entire amount requested with no taxes withheld like the above example. Therefore, you will have to come up with all the taxes and the penalty on your own. It may take a couple of years for them to actually catch up to you and the IRS will add taxes and penalties in the meantime.

Before you start taking money out of accounts, meet with your tax preparer and do some tax planning to make sure you don’t cost yourself money in taxes, fees or penalties.

Just About Perfect is generouslly offering a free 3 month membership to anyone who is unemployed. Use the Just About Perfect coaches to help you get on the right track, right now!

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Unemployed? Top 5 Tax Traps!

I counsel a LOT of people about money. I see the same mistakes being made over and over again.

If you’ve made ‘em, don’t worry. I’m here to help you do it right THIS year! The fact is, moneymakers need a money coach, just like gymnasts need a gymnastics coach and Tiger Woods needs a golf coach.

As your Money Mending coach, here are the mistakes in thinking and behavior I want you to avoid:

* Don’t think of your refund as free money – or lottery winnings. It’s not! That refund is your hard-earned dollars that you loaned Uncle Sam interest free – all last year.

* Don’t spend the refund – or OVERSPEND it – when you haven’t gotten the cash in your hands yet.

* Don’t spend the whole refund to pay down debt.

OK. So now you’re Money Smart about what NOT to do with that refund in 2009.

Next, here are my EASY Money Mending moves that YOU can make to best handle your income tax refund this year.

First, divide your refund into thirds – 3 equal amounts.

Why 3 equal amounts? Because we want to use that refund – however small or large – to handle the past, the present and the future.

Use one third to handle the PAST by paying down debts. Start with your most pressing debt…either the one with the highest interest rate, or the one with the biggest consequence for not paying it down.

Use one third for something you need or want in the PRESENT. If you can, use that money to have some FUN. Do something that is NOURISHING to you – something that makes you feel GOOD. How about a mini-vacation, or an evening of fine dining and great entertainment, or a day at the spa?

***Of course, if the brakes on the car are shot, or you have some other pressing need, you’ll need to do that FIRST.***

Finally, use one third to handle some aspect of your FUTURE. Here are several Money Mender suggestions for you to think about.

*Put money in your Anti-Emergency Fund – Read more about that here: http://www.mendyourmoney.com/create-your-own-anti-emergency-fund/.

*Put money in your Sleep EZ Fund or save for your retirement through your 401(k), 403(b), IRA (traditional or Roth).

*Put money into college education funds (Coverdell IRAs or 529 plans) for your kids or grandkids.

Why is this “thirds” approach such a great idea? Because you’ll be taking care of a variety of wants and needs – AND taking several easy Money Mending steps forward towards your BIG goal of financial freedom!

THAT is how you can have MORE fun with YOUR tax refund in 2009.

As always, if you have any questions, please go to my web page www.MendYourMoney.com for contact information. I’m here to be YOUR coach, and make sure YOU succeed.

Cindy

PS…Now is also a GREAT time to “check out your paycheck”:

* Re-evaluate how much money you are contributing to your 401(k) or 403(b).

* If you got a whopping refund, remember you were just sticking YOUR money in Uncle Sam’s pocket. No point in giving Uncle Sam an interest free loan! Adjust your deductions so that you have just enough taxes withheld from your paycheck.

PPS…Get your free “A Financial Course In Miracles” sampler package including Prosperity EFT video,  at www.AFinancialCourseInMiracles.com.

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How to Have More Fun With Your Tax Refund in 2009

The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home. Some are brazen enough to offer a money-back guarantee.

Unfortunately, once most of these foreclosure fraudsters take your money, they leave you much the worse for wear.

Fraudulent foreclosure “rescue” professionals use half truths and outright lies to sell services that promise relief and then fail to deliver. Their goal is to make a quick profit through fees or mortgage payments they collect from you, but do not pass on to the lender. Sometimes, they assume ownership of your property by deceiving you. Then, when it’s too late to save your home, they take the property or siphon off the equity. You’ve lost your home to foreclosure despite your best intentions.

If you think you may be facing foreclosure, the Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how to recognize a foreclosure rescue scam. And even if the foreclosure process has already begun, the FTC and its law enforcement partners want you to know that legitimate options are available to help you save your home.

How the Scams Work

Foreclosure rescue firms use a variety of tactics to find homeowners in distress: Some sift through public foreclosure notices in newspapers and on the Internet or through public files at local government offices, and then send personalized letters to homeowners. Others take a broader approach through ads on the Internet, on television, or in the newspaper, posters on telephone poles, median strips and at bus stops, or flyers or business cards at your front door. The scam artists use simple and straight-forward messages, like:

“Stop Foreclosure Now!”

“We guarantee to stop your foreclosure.”

“Keep Your Home. We know your home is scheduled to be sold. No Problem!”

“We have special relationships within many banks that can speed up case approvals.”

“We Can Save Your Home. Guaranteed. Free Consultation”

“We stop foreclosures everyday. Our team of professionals can stop yours this week!”

Once they have your attention, they use a variety of tactics to get your money:

Phony Counseling or Phantom Help

The scam artist tells you that he can negotiate a deal with your lender to save your house if you pay a fee first. You may be told not to contact your lender, lawyer, or credit counselor, and to let the scam artist handle all the details. Once you pay the fee, the scam artist takes off with your money.

Sometimes, the scam artist insists that you make all mortgage payments directly to him while he negotiates with the lender. In this instance, the scammer may collect a few months of payments before disappearing.

Bait-and-Switch

You think you’re signing documents for a new loan to make your existing mortgage current. This is a trick: you’ve signed documents that surrender the title of your house to the scam artist in exchange for a “rescue” loan.

Rent-to-Buy Scheme

You’re told to surrender the title as part of a deal that allows you to remain in your home as a renter, and to buy it back during the next few years. You may be told that surrendering the title will permit a borrower with a better credit rating to secure new financing – and prevent the loss of the home. But the terms of these deals usually are so burdensome that buying back your home becomes impossible. You lose the home, and the scam artist walks off with all or most of your home’s equity. Worse yet, when the new borrower defaults on the loan, you’re evicted.

In a variation, the scam artist raises the rent over time to the point that the former homeowner can’t afford it. After missing several rent payments, the renter – the former homeowner – is evicted, leaving the “rescuer” free to sell the house.

In a similar equity-skimming situation, the scam artist offers to find a buyer for your home, but only if you sign over the deed and move out. The scam artist promises to pay you a portion of the profit when the home sells. Once you transfer the deed, the scam artist simply rents out the home and pockets the proceeds while your lender proceeds with the foreclosure. In the end, you lose your home – and you’re still responsible for the unpaid mortgage. That’s because transferring the deed does nothing to transfer your mortgage obligation.

Fraudulent foreclosure “rescue” professionals use half truths and outright lies to sell services that promise relief and then fail to deliver.

Bankruptcy Foreclosure

The scam artist may promise to negotiate with your lender or to get refinancing on your behalf if you pay a fee up front. Instead of contacting your lender or refinancing your loan, though, the scam artist pockets the fee and files a bankruptcy case in your name – sometimes without your knowledge.

A bankruptcy filing often stops a home foreclosure, but only temporarily. What’s more, the bankruptcy process is complicated, expensive, and unforgiving. For example, if you fail to attend the first meeting with the creditors, the bankruptcy judge will dismiss the case and the foreclosure proceedings will continue.

If this happens, you could lose the money you paid to the scam artist as well as your home. Worse yet, a bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job.

Where to Find Legitimate Help

If you’re having trouble paying your mortgage or you have gotten a foreclosure notice, contact your lender immediately. You may be able to negotiate a new repayment schedule. Remember that lenders generally don’t want to foreclose; it costs them money.

Other foreclosure prevention options, including reinstatement and forbearance, are explained in Mortgage Payments Sending You Reeling? Here’s What to Do, a publication from the FTC. Find it at www.ftc.gov.

You also may contact a credit counselor through the Homeownership Preservation Foundation (HPF), a nonprofit organization that operates the national 24/7 toll-free hotline (1.888.995.HOPE) with free, bilingual, personalized assistance to help at-risk homeowners avoid foreclosure. HPF is a member of the HOPE NOW Alliance of mortgage servicers, mortgage market participants and counselors. More information about HOPE NOW is at www.995hope.org.

Red Flags

If you’re looking for foreclosure prevention help, avoid any business that:

• guarantees to stop the foreclosure process – no matter what your circumstances
• instructs you not to contact your lender, lawyer, or credit or housing counselor
• collects a fee before providing you with any services
• accepts payment only by cashier’s check or wire transfer
• encourages you to lease your home so you can buy it back over time
• tells you to make your mortgage payments directly to it, rather than your lender
• tells you to transfer your property deed or title to it
• offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
• offers to fill out paperwork for you
• pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

If you’re having trouble paying your mortgage or you have gotten a foreclosure notice, contact your lender immediately.

Report Fraud

If you think you’ve been a victim of foreclosure fraud, contact:

• Federal Trade Commission
• Your state Attorney General
• Your local Better Business Bureau

For More Information

To learn more about mortgages and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government’s portal to financial education.

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Beware Foreclosure Rescue Scams

Do you think you’d be able to pass a Consumer Financial Stress Test?

The National Foundation for Credit Counseling created a Consumer Financial Stress Test based on it’s 2009 Consumer Financial Literacy Survey.

See how you’d do…

Q: On a scale of A to F, what grade would you give yourself in terms of your knowledge about personal finance?

Results: It appears that many of us would not be moving to the front of the class, as 41 percent of U.S. adults, or more than 92 million people, gave themselves a grade of C, D or F on their knowledge of personal finance.

Q: Which best describes how you manage your money?

Results: Less than half, 42 percent, keep close track of their spending, with 7 percent, or nearly 16 million, admitting they don’t know how much they spend on food, housing, and entertainment, and do not monitor their overall spending.

Q: What best describes your financial situation?

Results: 26 percent, or more than 58 million adults, admit to not paying all of their bills on time, with 13 million admitting to having debts in collection, or are seriously considering filing for bankruptcy, or have done so in the last three years.

Q: In which ways did the terms of your mortgage turn out to be different than what you initially expected?

Results: 42 percent, or more than 94 million people currently have a mortgage. Of those, 28 percent say that the terms of their mortgage somehow turned out to be different, including either the payment amount or terms of the loan, the interest rate or its duration, or they had no knowledge of the required Private Mortgage Insurance.

Q: Do you have any savings excluding retirement?

Results: One-third of adults, close to 72 million people, report that they have no savings. Of those with no savings, more than one in four report that, if faced with an emergency, they would charge that expense to a credit card or take out a loan, thus adding to their debt load.

Q: What percentage of your household income do you save toward retirement?

Results: More than 74 million people do not put any part of their annual household income toward retirement. This number is up from 28 percent in 2008 to 33 percent in 2009.

Q: Compared to one year ago, how has the current economic climate affected your spending, and if you are spending less now, if your financial situation were to improve, would you be likely to spend more?

Results: Although 57 percent of adults report spending less than they were a year ago, 45 percent of those now spending less admit that if their financial situation were to improve, they would resume their previous spending habits.

Q: Have you ordered a copy of your credit report, and do you know your credit score?

Results: In spite of it being free, nearly two-thirds, or 144 million people, have not ordered a copy of their credit report in the past year. Additionally, more than one-third admit that the do not know their credit score.

Did you pass the Stress Test?

The good news is that all these items can all be fixed – starting with small, practical steps that will really make a difference in your finances and in your life. Begin by reading other articles at the Mend Your Money.com site or call me for help at 541-387-2995.

The 2009 Financial Literacy Survey was conducted by telephone within the United States by Harris Interactive on behalf of the NFCC on March 13-16, 2009 among 1,000 adults ages 18. For more information about the NFCC, go to www.nfcc.org.

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Can You Pass A Consumer Financial Stress Test?

Question: I always seem to have car emergencies. Isn’t there a better way to live?

Answer: Create an “Anti-Emergency Savings Fund “for normal and necessary expenses that do not occur every month. For example, you can pay your property taxes with your mortgage, save 1/12 of it every month, or just have an “emergency” when it shows up every year. By saving small amounts every month, you will actually have the money available to pay your property taxes when they are due. No more surprises!

The same is true with other types of normal expenses like car repairs, home repairs, school fees, holiday gifts, medical bills, etc. Even vacation!

I like to keep my funds in the best bank on the planet – ING Direct. ING lets you have as many accounts as you want without any minimums or fees – and they best just about the highest interest rates out there! And the best feature is “nicknaming” them all. That way I can look at my “home repair” account or “vacation” account and know exactly how much I have available! Of course, they’re FDIC insured. Get their Electric Orange high interest savings account.

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Emergencies!

Question: Cindy, can you give me some specific ideas for how to save money on everyday stuff? Thanks. ~ Janice

Answer: Sure, Janice, frugal living does not have to be about a life of deprivation. The frugal life is one of thrifty shopping, careful choices, and a saving mindset. Making just a few adjustments in five areas of your normal life will help you become a frugal person. Readers: if you have ideas, please add them to the comments below.

Groceries are one of the most expensive items on any budget.

• Be sure to take a list with you to the grocery store; this will help to cut back on impulse items. If you are still concerned, then why not take a friend shopping with you. Exchange lists at the store and each of you can gather up the other’s groceries, virtually eliminating all impulses.
• And don’t forget to cut out coupons. It may take some time, but it will add up in the end.

Menu Planning Central can make your meal planning a pleasure and save you hundreds of dollars and precious  hours you can spend with your family. Get your free Menu Planner and Shopping List!

Frugal people still vacation, AND they do it wisely.

• You can really stretch the vacation dollars by traveling during the shoulder season or off-season, although it’s a good idea to check to see if local attractions will be open if you want to attend.
• Since much of a vacation budget goes to housing, why not spend your vacation visiting family? There is the joy of bonding with relatives, but you also get to stay for free.
• Being frugal doesn’t mean that you have to stay home all the time. If you do a little looking around, you are sure to find that many of the museums, zoos, botanical gardens and other places offer free or discount days. For those that don’t offer the free days you can check to see if a group discount is available and then call up your other frugal friends for an outing.
• For movie nights, check with the local library to see if they have movies available to check out. There are lots for you to do, and you can do much of it without ever spending a dime.

Clothing is one of those items that civilized society has deemed necessary. The clothing manufacturers, who realize our dilemma, often charge outrageous prices.

• Buying out of season (buying winter clothes in the summer and vice versa) will help to cut this item in your budget.
• Instead of buying new, check out your local thrift store or second-hand store where prices are a fraction of the retail (and sometimes the clothes still have the original tags). Consignment stores in big cities often have lots of great bargains.
• An even better way is to just trade with friends. Hand-me-downs are the frugal person’s best friend.

One item that it is not always wise to buy new is the automobile.

• While there is nothing wrong with having a nice car, if you can’t pay for it with cash then it is probably not worth it. Drive what you have while you save up, and then purchase with cash. Just having the money in hand will give you a lot of negotiating power. Today, many of the used car dealers include some type of warranty with their cars, making the purchase even more secure.

The frugal lifestyle can be more enjoyable than any other. There is money for the things you truly want to do and there is no worry about how the bills will be paid each month. By being a little thrifty here and there, by thinking about your choices before you make them, and by developing a mindset of savings, you can live a fulfilled frugal life.

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5 Areas in Your Life to Live Frugally

Question: I’m a doctor and my finances are a mess! I make good money but I’m behind in taxes, I have too much credit card debt and I bounce a lot of checks. What can I do? ~ Dr. Debbie

Answer: Hi Dr. Debbie, I’ve worked with a lot of different Health Care Practioners and your situation is shared by many.

First, most of you start off with a lot of student debt and many years of deprivation.

Suddenly, you’re making a “lot” of money. Some make up for lost time by purchasing a lot of toys, others get behind in paying their income taxes. Either way, you woke up one day and found yourself in trouble, right?

While there are some basic things you can do, this is a good time to start working with someone like me to address your particular situation. Just like your patients, there’s no “one size fits all”.

Here are some basic things to do:

• Get a clear vision of where you’d like to be in 6-12 months. These goals can help you make spending and saving choices that will help you achieve the goals.
• Start using cash for purchases instead of your credit cards. If you have credit card balances, any new purchases get charged interest immediately — no grace period.
• Take the minimum credit card payments from this month and make the same payment every month regardless of what the card says. If you’re not using your credit cards for new purchases, the balances will start to go down.

These same items work for all professions and walks of life. It is hard to do this on your own, call me and I’ll work with you. Everying is so much easier and faster when someone shows you the way instead of having to figure it all out for yourself!

If you need help getting out of debt, the all-new Pay Debt Quickly Kit is the answer to your prayers.

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The Doc’s Finances Are Deathly Sick!

Categories keep expenses organized. When you look back at ATM receipts, you can tell when you withdrew the money but not what it was for. The same goes for entries on a statement. Paper and online statements don’t put deposits and withdrawals into categories. The added information lets you know where to subtract the money from in your budget.

Start with a few simple ones. Don’t make things complicated right away. Most people are already less than enthusiastic about putting together a personal budget so the more painless the better.

List all of the income and expenses from the last full month. Go one by one and decide what would best describe that item in a budget. Here’s the basic list I use:

• Income
• Savings
• Anti-Emergency (see Create your own Anti-Emergency Fund)
• Fun and Self-Development
• Charitable Contributions
• Home
• Food
• Clothing
• Dependent Care (all the kids and pet expenses)
• Insurance
• Health Care and Self Care
• Personal Business (stamps, paper, ink cartridges, bank fees)
• Transportation
• Old Debt Repayment (the balances you’re paying off on your credit cards)

For example, a payment to the water company would go under “Home”. Your son’s soccer uniform payment can fall under “Dependent Care”. If you have more than one child, you can create a category under each of their names for any expenses related to their hobbies.

Subcategories can be created for each of these to leave a place to record specific bill amounts.

This is actually the fun part. There is no limit on categories. In fact, the more specific you can be the better it will be when the time comes to choose between needs and wants. Unnecessary expenses can be eliminated over time to streamline your spending.

If you use a check register (a “cash register, LOL!) to record ATM withdrawals and checks written, leave a space to enter the category name for the entry. Later, when you review spending, you can pinpoint where the money is going. Finding points of overspending is part of the reason for creating a budget in the first place.

You may want to stick to broad categories if you are tracking spending in a specific area. That one area can be more detailed and the rest of the expenses lumped in bigger categories.

Even if you don’t think that you need a budget because you don’t spend much money, it is a useful tool.

Setting up a personal budget for your home teaches valuable organizational skills. This is a help when tracking investments or growing your business. Bad spending habits here can cost you profit dollars.

Since reconciling categories can be a tedious job, set a time once a week or once every two weeks to enter these figures in a spreadsheet, a ledger book, or into a software program designed for personal finances. After a month or two, when you have started to make changes in spending, you can reconcile your entries on a monthly basis.

If you want Financial Peace, Prosperity and Joy, go to “A Financial Course In Miracles” and download our free Sampler Package with both left brain and right brain tools to help you achieve the financial peace you’ve always dreamed of.

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Categories Rule!