Student Loans- The most obvious of debts that can be considered “good.” You take out money, you get an education which is supposed to assist in getting you a good job with decent pay. But, is this really how it is nowadays? It’s becoming harder and harder for college graduates to get jobs, and many of them have to move back home after they graduate. On the other hand, Income-based repayment and other government programs help recent grads when they’re trying to get on their feet. So, is a student loan good debt? I think it depends.

Home mortgages- Homes can be a liability, because, like cars, they can deprecate quickly.  In many cases, this isn’t an issues, especially if you take care of your home and make necessary upgrades. That being said, home mortgages, especially if the home is cared for properly, can be good debt. On the other hand, foreclosures are incredibly common right now. If you can’t afford it, don’t get it, even if the interest rate seems great.

Small business loans- This one is almost as obvious as the student loans. Sure, any loan is a risk, and starting a small business can be a huge risk, but overall, the intent is that it brings you a profit later on. Due to the state of the economy, it’s a toss up whether or not you should take the risk right now. On the other hand, movements like “small business Saturday” (the day after Black Friday) support the small businessperson, and people are more apt to go to small businesses for what they need because they may know the people who own the business. Weigh out your pros and cons before you make a decision about starting your own business.  Will you be financially stable even if it falls through?

I ask these questions about “good” debt because our economy is still unstable. If you are going to take out any of these loans, make sure to sit down and talk about it with family, friends, and a financial adviser. In a poor economy like the one we’re currently in, the last thing that anyone needs is to declare bankruptcy. Have a great weekend, and we’ll see you here next week!

It’s also tax season, and taxes as a seasonal or temporary employee can be very different depending on your circumstances. Some people who work for a period of time are considered seasonal employees; others are independent contractors. Both of these have different processes that they must go through while filing their taxes. This is important to know because you may have to calculate the taxes that are being taken out yourself.

Some jobs are classified as temporary jobs so that employers do not have to pay benefits. One of the most popular is waitressing.  Did you know that your tips are part of your taxable income? Because of this, it’s important to keep track of them. Larger companies and chains usually have some sort of system; mom-and-pop restaurants may not. If so, take the time every day to fill out some sort of ledger or spreadsheet to keep track of the tips you make.

There’s another thing that a lot of people may not realize when they work a temporary job: You may not have to file taxes. If you’re an independent contractor that makes less than $400, you don’t have to file. If you are actually employed and receive a W2, you are not required to file until you make at least $8,750. But, honestly, you should file, because you will probably get every penny of your federal taxes back. Throughout high school and college, this was the case for me. I did usually have to pay into my state taxes, but I almost always got all that I paid in back into my pocket during tax time.

Unfortunately, by doing this, I was giving the government an interest-free loan for a few hundred dollars. Had I filed differently, I would have gotten more of my money into my pocket throughout the whole year and not given the government that loan. No matter what kind of employee you are, temporary or full-time, make sure that you are filing correctly on your forms so that the government isn’t getting hundreds or even thousands of dollars from you as a loan for no good reason. That’s what bonds are for.

So, enjoy your temporary employment, whether you’re stocking shelves, taking on the slopes, or selling snacks at the snack bar. And don’t stress too much about those taxes; if you really need help, always consider going to a tax professional or company that can assist you. Have a great week, and we’ll see you here next week!

What should be in my will?

-          Your executor. This is the person that you choose to take care of what happens in the will. usually a spouse or other family member. In some cases, it may be a close friend, especially if you are estranged from your family, are unmarried, or have no immediate family still living.

-          The rights your executor has. Now, to some people this seems obvious. But you must give specific rights to your executor to manage your property and to pay off your debts, or they will have to deal with the court system in order to do so.

-          The distribution of your property and finances. Now, this is difficult for some people.

-          Where your children and pets are to go. This may seem silly, but it has caused a lot of issues in the past. What if there is a divorce situation, and there’s a stepparent? They won’t necessarily be the person who gets custody of the child. Pets are also another important thing to put in your will, for similar reasons. Yes, I know it’s ridiculous, but some people are crazy when it comes to animals. I have friends, a married couple, who now own the dog that belonged to the husband’s brother, after the dog jumping between people because his will said nothing about the dog.

Another thing that people frequently overlook is retirement funds. If you have a 401k or other retirement fund, you should make sure that you have it indicated in the paperwork where those funds are to go upon your passing.

Life insurance is vital, and you need to have things straight with it.  Too many people take out too little insurance, leaving your family with extra expenses that they may not be able to afford. The average cost of a funeral and burial ranges anywhere from $5,000 to over $10,000, depending on factors like:

- The funeral home
- Technicalities of the service, including who conducts your service and what type of service it is.
- cremation or burial

On another note, unrelated to finances. Make sure that your wishes for these events are clearly stated in your will as well, instead of your loved ones playing a guessing game when you pass.

One of the biggest tips I have to give you about preparing for tragedy is to keep all of your financial paperwork in order.  Let people know your accounts, keep them organized in a file cabinet or something similar. It will make things a lot easier for your grieving family members if they know where your information is.

Death is not comfortable to talk about, but its important to look ahead and think about if you want to make sure your family isn’t struggling more during their time of grief.

Today, we’re going to look at 4 facts about retirement that are often overlooked when planning for the future.

1. Extra retirement plans. 401k’s and IRA’s are not the only retirement plans out there. There are several others, including these two:

-419e plans- A plan where your employer can offer insurance that you can use after you retire.
- 457f plans- an employer assists the employee by essentially paying for some of all of the taxes the employee would have to pay on their IRA or 401k contributions.

2. You can collect social security while working. People on disability do this too; you can still work part time and collect on your social security benefits. They just won’t be as much as they would be if you were not working at all. Don’t strain yourself in retirement; if you need to keep working a little to make ends meet, you won’t lose those benefits you worked so hard for.

3. You can’t hold your standard of living. As much as you want to believe that the opposite is true, it really isn’t. Most people who have a middle-class income have to reduce their standard of living by 50 percent or more when they retire. That is a significant change; imagine only being able to pay for half of the things that you pay for now. Add in the fun numbers of inflation and the change in costs for pretty much everything, and you probably aren’t saving enough in order to live the same life that you are now.

4. Couples who don’t have a set plan by their mid-thirties are at the highest risk for a financially difficult retirement. This sounds like a really random statistic, and it kind of us. But the people who suffer the most are the people who have to support others. If you are in this category, now is the time to figure out what needs to be done in your retirement. Medical costs, end-of-life costs, and other things are more expensive when there are two of you, and burdening your family with it is both unfair and unnecessary. Find a financial adviser and make a plan.

Retirement. It’s never too early to think ahead. It’s never too early to make sure  that your retirement is enjoyable for you and your loved ones. So, save up, do your research, meet with an adviser, and get yourself on the road to financial freedom during your retirement. Have a great week, and we’ll see you here next week.

Luckily, my heat is included in my monthly rent. But what if you don’t have that luxury? Today, we’re going to look at some things that you can do in order to take that chill out of your heating costs, whether you live in a 1 bedroom apartment like I do, or have a two story home.

First, make sure that everything in your home is up-to-date. Shingles on the roof, insulation in the walls, whatever it is that needs to be updated in order to keep the heat in and the cold out, do it. It may feel like a financial burden at first, but in the long run, it could save you more than you’re spending for it.

Another thing to consider when getting ready for the winter time cold is doing those extra things that can help keep heat in your home. Put down your storm windows, put that plastic covering over your windows, and put draft dodgers in front of your doors. Keep that cold out!

One bad habit that I have is the fact that I will adjust the heat up and down according to how cold it is. Don’t do that! If it warms up for a couple days, keep it at the heat you had it; the heater takes a lot more energy when trying to catch up quickly then it does to maintain a specific temperature. So, don’t follow my bad example; keep the heat at 68 or 70. It’s okay to turn it up and down 2 degrees, but 4 or 6 can increase those costs by 10 to 25 percent.

Another thing to watch out for is how open your house is. I have a four bedroom apartment where, if I have all of the doors open, it’s essentially a big open box. It’s hard to heat a big open box efficiently. So, I close some of my doors during the winter. It helps keep each individual part of the house warmer while using less energy.

If you own your home, look at the type of heat that you have and consider switching if you are able to. Some types (heating oil especially) are more expensive than others.

Finally, I always jokingly say that you can always put more clothes on. It’s cold, put a sweater on, use an extra blanket, wear slippers. You don’t necessarily have to use your heating for all of your warmth, use the other things that you already have in your home.

So, stay warm, it’s cold out there! Bundle up, enjoy the warmth of your home, and have a great weekend in this arctic chill!

When people are unsure and send anyway, they make some really big mistakes. Other people make mistakes when they get their returns. Here are three sets of silly mistakes that people sometimes make when doing their own taxes.

Three mistakes we make when we file.

1. Filing the wrong status. What matters? Your marital status as of December 31st. It doesn’t matter if you just got married on December 10th, if you’re married on December 31st, that’s your filing status. If you do this incorrectly, you risk losing child tax credits and other family-based deductions that you would otherwise have.

2. Not reporting certain incomes. Waitressing tips, casino winnings over $1000, and anything paid “under the table” or via freelancing needs to be reported and taxes paid on. The fines and fees for not doing this, no matter how small the error, are immense. Don’t risk it.

3. Social security numbers. I was in college twice. I know my social security number by heart. But, nowadays, this isn’t as commonplace as it used to be. Make sure that you write it neatly if you’re still doing your taxes by hand. If you aren’t 100% sure about your dependent’s social security number, ask them or find their card. It’s not worth the pain it is to refile.

Two silly things we do with our tax return

1. Spend instead of invest. Some people have a plan for their tax return, and that’s good, but you should also invest a bit of it as well. That money is money of yours that the government borrowed for the year, meaning that they got interest that you should have gotten. So, why not work to get some of that interest back?

2. Furthering debt instead of paying debt down. How is this possible? Well, some people use their return to make big purchases that they have to take out loans and/or use credit in order to make. Don’t do this! You should consider paying down your debt instead.

One thing we don’t do enough

1. Get organized beforehand. Too many people (myself included) wait until tax season to finally get all of their receipts and pay stubs together. Even if your system of organization involves throwing all of your stuff into a shoebox and dealing with it at the beginning of the year, that’s better than having to tear your house apart for that one medical receipt that you really want to claim.

So, avoid making these tax mistakes this coming year. Start throwing your stuff together for next year. Your plan for your tax return should include some investments. And most of all, check everything before you hit that submit button. Have a great week!

Bummer! Because of this silly mistake, I lost the loyalty discount that I had with my insurance company. Luckily, that was one of several ways that I had saved money on my car insurance over the past few years. Today, I’m going to share with you three other ways that I save big bucks on my car insurance every year.

1. Maximize your insurance’s safe driving programs. First off, you need to be  a safe driver in order to get the best discounts available. Being a safe driver isn’t only accomplished by avoiding tickets and accidents nowadays. Many insurance companies will give discounts if you take classes for safe driving, which is always worth the time you invest in it. Some insurance companies have started utilizing technologies that can track how you drive. These technologies keep track of how quickly you start and stop, how fast you drive, and other various things that could potentially be unsafe to you and those around you. Then, the insurance company receives that information and keeps track of it, which helps the insurance company determine what kinds of discounts to give you.

2. Consider carpools. Or walking, because walking is good for you. What do carpooling and walking have to do with saving money? Car insurance companies will ask you how many miles are on your vehicle every time you renew. The reason? So that they can evaluate how much you drive. The more you drive, the more chance you have of having an accident. They won’t charge you extra if you drive more than the national average (10,000 to 12,000 miles a year), but if you drive significantly less than the average, you may get a nice reduction. So, instead of driving everywhere, consider carpooling, walking, and/or public transportation.

3. Pay for several months at a time.  I always pay for my car insurance several months at a time. Many car insurance providers offer a discount for people who pay for 3, 6, or 12 months at a time. My insurance provider offers a large discount for paying 6 months at a time that is essentially paying for four months and getting the other two for free. Sometimes it’s difficult to pay that much at a time, but if you can swing it, do so!

So, as we get to the end of the year, maybe it’s time to reevaluate your car insurance. Is your premium at the price you want it to be? Is there anything you can do during the new year that can help you reduce your insurance premiums? Car insurance is a significant part of your budget, so why shouldn’t you get the most for your money? Have a great week and a happy new year!

The few days before and after Christmas are hectic. Stores are packed; the days before Christmas involve getting last minute gifts, while the days after are full of returns. Because of this, many retailers take advantage of the moment and put out some amazing sales. Hey, if people are going to be there anyway, why not take the time and get them to buy other stuff while they’re there, right? If you’re brave enough to fight the crowds, there’s a few things that you should go out and look for in the few days after Christmas.

- Holiday items. Many of the holiday decorations that I possess are from post-holiday sales. This isn’t only the case for Christmas; many retailers will greatly discount holiday and/or seasonal items after they occur. The Christmas tree that sites in my living room was only $10; the decorations on it came to a dollar total.

- Electronics. Did you not get the TV that you wanted? Well, check out your local electronics store and see if it’s on sale. Manufacturers of electronics usually put out new products during late January/early February. So, after Christmas is the best time to slash prices and get the old stock out of there.  Also, in the same token, video games usually get reduced by a lot after Christmas, even if they’re ones that came out just in time for the holiday season.

- Vehicles. Like electronics, the new models are brought out toward the end of the year. Clearing a car lot of old models has been difficult in recent years (the most difficult since Cash for Clunkers a few years ago), so end-of-year sales that fall right after the holidays have become popular. If you’re even thinking about getting a new car, after the holidays may be a great time to look.

- Getting fit. Manufacturers and retailers alike take advantage of New Year’s resolution-makers in this regard. Home gym equipment, fitness videos, gym memberships, and even simple things like dieting journals and pedometers can be found for big discounts.

These definitely aren’t the only things that are great to buy after the holidays roll around, but they’re definitely some of the most popular. Also consider looking at jewelry and candy (maybe get ready for Valentine’s Day early?), baby items, and winter clothing (especially coats). There’s probably a ton more that I’m missing, but at least this gives you a starting point. So brave the crowds and look for those great end-of-year deals. Happy Holidays!

Why should finances add to your stress? We’re going to share 4 tips that can save your end of year budget from crashing and burning like so many other people deal with every year. Here are a few things that you can do to make your end of year a little less stressful for everyone in your family.

1. Stick to your budget and reevaluate for next year. Stick to it! If you have a budget set, you need to try and get to the finish line. Don’t overspend on gifts and groceries because you’re caught up in the moment. Also, take the month of December to sit back and reevaluate your budget for next year. Were you saving enough? Did any of your bills increase or decrease? Are you struggling financially, and if so, what can you eliminate to make your burden a little lighter? It’s never a bad thing to reevaluate, even if your conclusion is that your budget is fine as-is.

2. Get your stuff together for your taxes. I know, you aren’t required to get your W-2′s until January, but what about everything else? Charitable contribution receipts, medical bills that weren’t covered by medical insurance, home office expenses. If you have everything together, it’ll make the whole process easier when your W-2′s finally do come.

3. Cut expenses for holiday travel. It’s too late to buy tickets super early (my usual tip for travel), but it’s almost to the point where you may get the last-minute discounts, if you can find somewhere that has extra seats. Don’t check a bag if you don’t have to; many airlines have increased the cost of checking bags. Don’t eat on the premises unless you’re stuck for a long time. Gas prices have been going down and it’s starting to get cheaper to drive than fly to some places; calculate that before you go.

4. Be creative. If you’re struggling for cash, be creative in all of your end-of-year endeavors. I write letters to the teenagers I work with because there’s too many to get gifts for. Having a New Year’s Party? Make your own favors, get creative with inexpensive appetizers. Utilize free movies you may have access to via your TV or computer. Or, just stay at your house and play games!

The end of the year should be a fun and exciting time for everyone involved. You shouldn’t be stressing in any way, but hopefully, these tips help you out so that your finances are one less thing to worry about. Have a great weekend!

Are you looking at the possibility of selling your home soon, or are you considering refinancing sometime soon? If you fit into either one of those categories, then today, we’ve got 5 easy tips that could help you increase your home’s value.

1. Consider building a deck or adding to your current one. My family added a deck to the house that they live in just after moving in (I’ve since moved out). Since then, it’s been used for multiple reasons, anything from just hanging out to hosting parties. So not only are you adding on something that’s especially useful, but you’re potentially adding several thousand dollars worth of value to your home, depending on the size of the deck and what material you use (wood decks give a little less value than composite ones).

2. Remodel your basement. Have you been thinking about making your dingy basement into a finished one? Do it. Many people who are in the market to buy a home are looking for unique traits like finished basements. More people are entertaining in their homes nowadays, so this home improvement (and adding a deck, like mentioned above), can also help you save some money in the long run. It’s always more fun to hang out at home when you have a room specially made for that purpose!

3. Make your yard pretty! Is your yard just some grass and maybe a tree or two? Consider putting in hedges or other decorative foliage. Don’t make it tacky; subtly make changes that make your home and acreage just a little more appealing to the eye when you first come upon it.

4. Energy efficiency is key. This is the buzzword for everyone. Consider replacing your windows, shingles, and insulation if you’re able to. If you can swing it, get energy efficient appliances that will stay with the home after you leave. The less energy it takes to run the home, the more appealing it is to many of today’s potential home buyers.

5. Take a look at your kitchen. Whether you actually eat in there or not, the kitchen is the most-used room in the home. Everyone has to eat, don’t they? Don’t think that this means that you must totally tear up your kitchen and start all over. Is the look modern? Do you have energy efficient appliances (like I mentioned above)?  Do your cabinet doors need to be fixed and/or replaced? Is there plenty of shelf and/or counter space? Do you have a pantry? All of these things should be taken into consideration when evaluating your kitchen.

If you’re not in a rush to sell your home, don’t disregard this advice!   Doing home improvements over a long period of time can be helpful when you finally do decide to sell your home. Have a great week, and we’ll see you here next week!