It’s May 7^th, so tax season is officially over. But it’ll be back again. That’s for sure! As Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.”

Whether we like it or not – Tax Day is here to stay.

I think the only people who look forward to tax season are the tax preparers and the people excited about filing early to get their return back. I must admit that I don’t fall into either of these categories.

Wouldn’t it be nice if we could make next year’s tax season easier on ourselves? The good news is that there are some steps you can take to do just that. These steps could help you eliminate the stress and save you time and money.

Here are some tips that I’ve put into action to make tax season easier:

1. Plan Ahead – The first step is to understand what types of tax records you need. You can find out this information when you review last year’s tax return or use a tax preparer’s checklist. These items might include W2s, charitable donations, expenses (childcare) and mortgage interest just to name a few.
2. Create a Filing System – Now that you know what to look out for, you need to create a filing system to keep your tax records throughout the year. Being organized will save you quite a bit of time. Create a filing system that works for you (monthly/yearly). You could store your receipts, expenses and tax statements in a file cabinet with folder(s), envelopes or shoebox. The key is to keep everything in a single location with the tax year on it. That way you’ll be able to find it easy when you’re ready to file.
3. Stay Organized and Review Tax Information in Advance – Want to avoid the stress of last minute requests and corrections? The best way to avoid this is to stay organized and review your tax information (tax documents, expenses, receipts, ID #s) throughout the year. This gives you time to correct any problems and confirm you have everything. Poor organization and missing tax records could result in a higher tax bill, tax penalties and delayed filing.
4. Save Past Returns – Keep a copy of your past tax returns. It’s recommended that you keep your returns up to seven years. These tax returns come in handy for future returns and if you need to amend your taxes.
5. Don’t Sweat It! – The best thing you can do is be prepared for tax season. When you have everything ready, you don’t have to sweat it (less stress, more peace of mind). Scrambling to gather stuff at the last minute becomes a thing of the past.

I hope this post helps you eliminate the stress and anxiety of Tax Day. Who knows you may even start getting excited about it!

Do you have any other tips to make tax season easier? What works for you?

Today is April 10th. And that means you have a little more than two weeks left (17 days)  to get your hunt on. The 2013 Money Smart Scavenger Hunt gives you a shot at some cool prizes (like $600 Apple gift cards, $100 Visa gift cards and more). So get your smile ready and your mobile phone too.

This photo scavenger hunt is FREE to enter and open to everyone. All you need is a mobile phone to get started.

Start the Hunt Today (ends on April 27, 2013)

To join the hunt simply:

1. Download the “Scavenger Hunt with Friends” app from iTunes or the Android Market.
   
2. Get Started – Open the app, create a username and password, and search for the “Money Smart Hunt” hunt.
3. Start Hunting – You will see the list of items to complete and begin uploading your photos of you completing each item.

“The Money Smart Hunt” is sponsored by the Federal Reserve Bank of Chicago. For more information, visit http://www.moneysmartweek.org/hunt.

Good Luck!!!

Tired of paying too much to park? Keep reading this and you’ll find out how I saved over 50% parking in Chicago. And Chicago has the nation’s highest parking metered rates. Metered parking downtown can cost as much as $6.50 an hour. Ouch.

It’s ridiculous! With rates like this, you’d have to shell out 52 quarters to park for a few hours. That’s an awful lot of change to be lugging around to pay a parking meter. This is probably causing people to get parking outrage. No wonder they gladly accept credit cards.

Parking is just too expensive.

That’s why I try to avoid parking downtown. Nothing beats commuting by train into the city. But unfortunately, it’s not always convenient.

The other day I decided to drive downtown. But I refused to pay those high parking rates. Thinking back to #2 in my “7 Surefire Tips to Save on Parking” post.

So I had to find a way to save on parking. That’s when I came across this incredible website with unbelievable parking rates.

I must admit that I was a little hesitant at first because the rates were so low. After doing a little research and reading their reviews, I decided to give them a try.

And I’m glad I did. It’s called ParkWhiz.com. And it’s the real deal.

ParkWhiz gave me a cheaper parking rate and an upgrade (valet anyone?). Instead of paying $31 for valet parking, I only paid $14 with ParkWhiz. This saved me over 50% on parking!

So you know I had to share the good news with a friend of mine and she couldn’t be happier. In fact, Kris has used them more than I have now. She told me ParkWhiz has saved her some serious cash on parking.

If you want to save on parking, give ParkWhiz.com a try and tell me how it goes for you.

Do You Have Any Other Ideas to Save Money on Parking?

Photo – o palsson

Have you heard about the new credit card swipe fees? They went into effect on Sunday, January 27^th. Now retailers have the option of passing on credit card swipe fees to consumers. A swipe fee is the cost retailers pay every time you use your credit card.

This means that you could pay an additional 1.5% – 4% on your credit card transactions. The key word to remember here is could, because it’s at the retailer’s discretion to charge a swipe fee  (also known as “checkout fee”).

While many retailers have opted not to charge the fee. Some retailers may charge you.

Retailers who charge swipe fees must disclose it upfront. And make it clear on the receipt.

This new law doesn’t apply in all states. There are ten states with laws that prohibit retailers from charging the surcharge. These states include: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. (What??? Illinois didn’t make the list. )

How did we get here? Last summer there was a settlement for a class action suit against MasterCard and Visa for swipe fees. Click here to read the nitty gritty of the suit. As part of the settlement, retailers were given the option of recouping swipe fees from the customer.

So watch out for retailers who are charging you swipe fees. The best way to avoid them is to use your debit card or pay cash. For more information on this, visit knowyourcard.org.

What do you think of swipe fees? Will they change the way you shop?

Photo: The Truth About…

A friend of mine asked if she could really get a free credit report. I sensed the embarrassment in her voice. But it’s a great question. Yes, you can get a free credit report! And I mean completely free without any strings attached.

I don’t blame her for doubting it. Every time you turn around companies are telling you about free stuff.

Like you’ll get a free $20 gift card (BIG PRINT) when you purchase a $100 gift card (small print). Or how about Free Shipping (you’d better read the fine print because it’s only when you spend $99 or more)?

You see more “when you” attached to free offers than ever.

And there are a lot of companies out there pitching you a free credit report. Once you try to get it, there’s a catch. They may require you to sign up for some type of credit monitoring service that you never even wanted. In this scenario, you’ll have to give them your credit/debit card, so they can charge you every month for monitoring (when you forget to cancel).

That’s exactly why my friend told me she pays for her credit report. She doesn’t want to deal with any antics that come along with those so-called “free credit report” offers.

The good news is that — friends don’t let friends pay for a credit report that they can get for FREE. Without any strings attached. Just keep on reading my friend.

Get Your Free Credit Report:

By law you’re entitled to get a free copy of your credit report from each credit reporting company (Equifax, Experian, TransUnion) every 12 months. Ideally, you want to check your credit report at least once a year.

Check out my blog post “Pull your credit for FREE in 5 minutes or less”. And I’ll show you how to get your free credit report step-by-step.

It doesn’t take long. If you’re not convinced it’s worth the time. Check out my video Uncover the Truth: 5 Reasons to Check Your Credit Report.

Need Your Credit Score:

Credit scores are not free. For real! You usually have to pay for your credit score. Credit reporting companies typically charge around $15. If you want to get your score from each reporting company it could cost you $45.

Beware of any company that offers you a free credit score. Because it’s not free when you have to pay a monthly fee for credit monitoring services just to get your free credit score. If you’re not careful you could find yourself paying every month for that ‘free credit score’.

A cheaper way to get your credit score is to ask for it when the lender pulls your credit report.

Have you ever gotten a free copy of your credit report? Please share your experience.

Calling all Chicagoland money savvy kids in grades 5^th – 8^th.  Now is your chance to be crowned the Money Smart Kid 2013 (Chicago’s very own financial literacy ambassador). And that’s not it. The Money Smart Kid will win a $5,000 scholarship from BMO Harris Bank.

The two runner-ups will receive $2,500 scholarships from Country Financial. And the other three finalists will get laptops from Woodforest National Bank. Last, but certainly not the least, the first 20 teachers who get their students (minimum of two) to enter the Money Smart Kid Contest will receive a $25 gift card from BMO Harris Bank.

This is an essay contest. All Money Smart Kid 2013 essay entries must be submitted by March 21, 2013. 

To participate in the Chicagoland Money Smart Kid Contest. Your kid must:

• Be a student in grades 5-8 in their school.
• Have knowledge of money management skills (decision-making related to spending and saving, investing, use of credit, etc.) appropriate for their age and grade level
• Demonstrate how they practice good money management skills in their daily lives
• Be able to “think on their feet”— responding to questions from business leaders and media
• Be articulate—able to speak in front of large groups and cameras, and respond well to questions
• Live in the Greater Chicagoland area

The 2013 Money Smart Kid Essay Question Is:

“What is the difference between an investment and an expense? What would be a good investment in your community and why? Please discuss who would benefit from this investment.”

Click Here to apply for the contest in Chicagoland. To find out about other Money Smart Kid Contests outside of Chicago (e.g. Missouri), please visit moneysmartweek.org.

Will your child be the next winner? I sure hope so.

We avoided the fiscal cliff. Thank goodness! But the late legislation changes for taxes required the IRS to delay accepting 2012 tax filings until January 30^th.

The 2012 tax filing open date was moved from January 22^nd to January 30^th. I know you early filers may be bummed. Since you’ll have to wait another eight days to file. It may be longer if the fiscal cliff legislation impacted your tax forms (see below).

According to the IRS press release:

Who Can File Starting Jan. 30?

The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major “extender” provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Who Can’t File Until Later?

There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future.

The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms that won’t be accepted until later is available on IRS.gov.

On the other hand, people who file later in the season (like myself) are probably wishing the tax deadline had moved back too.

Happy Tax Filing!

Photo: John-Morgan

In Romeo Clayton’s book “How We Prevent Wealth” he invites us to learn from his own financial blunders. He shows you how to get on the path to financial independence.

“The successful man will profit from his mistakes and try again in a different way.”   - Dale Carnegie

When it comes to money, most of us learn through trial and error. But wouldn’t it be easier if we learned from other people’s mistakes? Then we wouldn’t have to make them ourselves. I mean who wants to get burned learning not to touch the stove. We’d much rather know this information beforehand (no pun intended), so we can avoid the pain. Ouch!

While Clayton’s book doesn’t reveal all of the financial pitfalls you might experience in life (who could in 233 pages?), it highlights many of the mistakes that cost us dearly.

I had the pleasure of meeting Clayton last year at the Financial Blogger’s conference. And when he showed me his book it peeked my interest. So I was determined to read it in 2012.

I must say that I thoroughly enjoyed the read. And the imagery on the book cover definitely brings the message home. Take a close look and you’ll see it’s a piggy bank turned upside down with all of the money falling out.

Clayton’s goal is to help you put more money in the bank.

A Different Kind of Personal Finance Book

This is not your ordinary personal finance book. Sure there may be some similarities in the lessons. But there’s also subject matter discussed in this book that I’ve never seen in any personal finance book. And I’ve read a lot of them. I guess that’s why he says its “A Personal Finance Reflection.”

A few things that stood out in the book were:

• Transparency – Clayton is transparent about his finances from start to finish. He starts the book laying out his earnings and total savings over the past 13 years. Oh, yes he did. After all, how could it be a personal reflection about his finances without the $$$$? He’s essentially showing you the money.
• Emphasis on Saving for Retirement – We live in a now society. And many of us are not thinking about how the choices we make today impact our future. Clayton underscores the importance of doing more today, so you can live in comfort (without working in your golden years) later.
• Student Loan Debt – Clayton has an MBA and he discusses his personal experience of selecting the right college for the money. Student loan debt has surpassed credit card debt and I believe Clayton provides some great tips for those pursuing a higher education to be smarter about acquiring loans.
• Thought Provoking Questions – He uses thought provoking questions throughout the book to get the reader involved. This helps the reader do a self-reflection of what he/she may or not be doing.
• Investing – Clayton’s book offers you some insight into the wonderful world of investing. Where you can be up today and down tomorrow.
• Insurance – Sometimes insurance is an after thought. Clayton challenges you to think beyond today. Will you be prepared for tomorrow if destruction strikes? Will your loved ones have enough if something happens to you?
• Visual Examples – Clayton shows you real-life examples to highlight specific points. These visuals are helpful in reinforcing the message.

Overall, I felt Clayton did an excellent job engaging the reader to learn from his own mistakes. And he covered a wide range of financial topics (insurance, loans, saving, credit).

However, the book assumes the reader has a certain level of financial understanding for some of the areas discussed. So it may be a little challenging for beginners. Since he shares his personal experiences at a higher level.

For example, in investing he assumes the reader has a certain level of understanding about investment vehicles. Readers should not expect to receive a general overview of investment options. Nonetheless, he shares investment tips everyone can use.

Clayton says “We may not be able to learn all the details of investing, but we owe it to ourselves to understand where we, or someone who manages our money is putting, it, and how much it will cost us.”

And he’s right. Bad investment decisions are one of the biggest financial mistakes people make. It’s best to fully understand your investments before you make them.

Overall, it’s a good read (especially for young adults!). Clayton’s book will show you how to make wiser decisions. And pay closer attention to the little things that could be draining your bank account. He also weaves in humor, which is a nice touch.

A few of my favorite quotes from the book were:

• “The earlier we realize our mistakes, the earlier we can turn them around.”
• “We must know our limits, and stay within them.”
• “We can choose to do the right thing and minimize our sacrifices while we are young, or do the wrong thing and sacrifice greatly when we are older.”
• “Wealth is possible for many of us if we make smart financial decisions.”

For more information on Clayton’s book and to order your copy, please visit HowWePreventWealth.com.

Have you ever missed your flight? It’s not the best feeling. Especially when you’ve been running through the airport to try and make it. Then it goes from bad to worse when you actually miss it. Now you have to pay a change fee/higher fare just to get there.

Now, hot off the presses – sometime next year Southwest Airlines will start charging customers with restricted tickets (i.e. “Wanna Get Away”) a no-show fee. To avoid a no-show fee, you’ll need to cancel your reservation before departure.

This fee is expected to go into effect in 2013. And that’s not the only fee change. In 2013, Southwest Airlines will also:

• raise the oversized bag or third bag fee from $50 to $75
• early check-in will go up from $10 to $12.50

The good news is that you’re bags still fly free on Southwest Airlines next year.

Happy Travels to You!

Photo: BFS Man

The other day I saw an interesting survey on Bloomberg. The question caught my eye and the multiple-choice answers really peeked my interest.

The Bloomberg survey said:

Who do you trust the most to manage your money?

• Myself
• My dog
• My independent planner/adviser
• An algorithm
• My mother/father
• My broker
• My insurance agent

So who do you trust? I had to participate in this survey and see how the respondents were thinking. I hoped that the top answer would be ‘myself’. Because as I always say “nobody cares more about your money than YOU.”

I responded to the survey and instantly my answer was crunched together with everyone else’s. The results at the time I took the survey were:

It took me back to the time when Leona Helmsley left her dog $12 million. I wonder what her dog did with all that loot. What kind of money skills did that pooch have?‘Myself’ was the first choice. Yeah! But how could ‘my dog’ be second? I mean really, trust a dog to manage finances. That must be SOME DOG (you know like some pig in Charlotte’s Web).

Perhaps the respondents were just having fun with the survey. Who knows? Someone told me that they probably chose ‘my dog’ because they feel managing money is all luck. I hope not.

Since I don’t have a dog myself, I’d like to hear from you dog owners. Would you trust your dog to manage your money? Enlighten me please.

Photo: e3000