Debt reduction for 2008

December 30th, 2008 Ashley

Ok, so I admit that debt reduction isn’t on the top of my list of things to do.  I mean, it IS, but not like a lot of bloggers.  While I think it’s very important, I don’t spend a lot of time thinking about it.  It’s basically on auto pilot, I pay my payments plus a set amount extra and that’s that.

But even so it’s great to look back to see how much it’s gone down over the year.  So here we go…

The Top Financial F*Ups of 2008

December 30th, 2008 Kristy

When I sat down to actually write this article, my intention was to come up with the top 5 biggest f*ups of 2008, but the reality is that it was too hard to go with just 5. What I thought we’d do instead is just list some and then you guys add comments on your favorites at the end.

So, here we go. In no particular order, here are some top financial f*ups of 2008.

# 1 - Subprime lending mess

You guys remember this, don’t you? I mean, it’s only the cause of all of our problems in 2008. If I were able to actually make a top 10 list, this would have been in it. Who would have thought that when home values dropped and adjustable rates went through the roof that people wouldn’t be able to afford their houses anymore? I mean, the only indication was that they couldn’t afford it when they filled out their applications to begin with, but that was barely noticeable! Gee, we were just trying to help people achieve the American Dream…too bad that dream was effectively flushed down the toilet and left thousands without homes.

# 2 - Credit crisis

Guest Post - Failure to Plan

December 29th, 2008 LivingAlmostLarge

Hello to the readers of Living Almost Large!

It’s hard to believe 2008 is almost over and the last year of this decade is about to begin! My name is Natalie MacNeil and I’m the founder of SheTakesOnTheWorld.com, a blog for ambitious women who are literally taking on the world. I am an entrepreneur pursuing financial freedom so that I can “live large.” I like discussing personal finance because I believe it’s something we don’t talk about enough in our society. I think we can all live larger by being open and honest about personal finance.

Failure to Plan

It’s that time of year again to evaluate your finances, plan for the future, and formulate next year’s budget. 2009 is going to be a tough year for a lot of people so planning is key. “Failing to plan is planning to fail” as the old saying goes. Check the following items off your to-do list before the year is over to start 2009 off right:

Thomas Edison

December 29th, 2008 Ashley

Edison is considered one of the most prolific inventors in history, holding 1,093 U.S. patents in his name, as well as many patents in the United Kingdom, France and Germany. [1]  I can’t begin to talk about all of Edison’s inventions.  This post would go on forever.  I’ve barely scratched the surface but I tried to stick to his more well known inventions, the phonograph and electric lights.

Thomas Edison was born on February 11, 1847 in Milan Ohio.  Edison had hearing loss early in childhood and became totally deaf in his teens.  This has been attributed to scarlet fever and chronic untreated ear infections.  He was quite the day dreamer in school and only received 3 months of formal schooling.  He was home schooled by his mother and has said, “My mother was the making of me. She was so true, so sure of me; and I felt I had something to live for, someone I must not disappoint.”

End of the Year Tax Planning

December 28th, 2008 LivingAlmostLarge

My biggest thing at the end of the year is see if we owe any money to the federal government. The worse year was $5k owed then the next year we overpaid because was so flustered I estimated wrong. This year I think I should be right on.

However, here’s a tip, take your last paycheck and pretend that’s your w-2. I’m doing it as we speak. Then start to gather up the basic paperwork of mortgage deduction, tuition payments, state income taxes, property taxes, etc.

You actually have until 01-19-09 to make your last quarterly estimated payment. Thus if you owe on your taxes according to your rough calculations, you can make a payment and NOT be hit with fees and interest. The same with your state income taxes.

Since we typically owe I like to run a rough calculation and make a payment to get us within $100 of what I think our taxes. This year however, I believe we only over paid by $500! So we’re good to go and I do not have to worry for federal taxes. And I made a small payment for our state income taxes so we’re good I believe for both this year! Yes!

10 Things You’ll Face on the Road to Debt Free

December 28th, 2008 Kristy

If you haven’t noticed, I like to read about other people’s financial journeys because I’m always curious to see how people cope and what they did to reduce their debt. Sometimes I’m fortunate enough for it to inspire a post. Today’s post came from an article I found while trolling the PF sites.

The author gives 10 things the majority of people will experience on their road to being debt free. It’s a great list and I can personally attest to the feelings. So, I figured I’d give you an idea of what I went through when I decided I’d had enough of my debt.

1.) I started my journey with a sense of enthusiasm and determination.

Make Something Useful Out of Your Christmas Tree

December 27th, 2008 Madoline Hatter

This is a re-post of one of our earliest articles first published February 27, 2008.

Conversion of a Common Coniferous Conundrum

When we moved into our own home, my sister and I decided to make our first Christmas a memorable one, which included the purchase of a 7 foot tall Christmas tree. Another occasion which came with taking possession of the house was our going to the sanitation office and signing up for trash pickup, at which time we were warned that sanitation engineers would refuse to empty any trash container which was overfilled. To make sure we understood what it meant to overfill a trash container, the sanitation department employee showed us several photographs of a trash container into which a Christmas tree had been rammed with the lid in various half-hearted attempts at closure. Happily, this specific offense we will never be tempted to commit. For why on earth would two practical people like ourselves throw away (or reduce to mulch) a perfectly good used Christmas tree?

Almost as soon as we wrestled and tilted our Christmas tree into a position which passed for perpendicular, I began scheming at the potential uses of this sizable item which would become available as soon as December 26. However, to make the best of the purchase, we left the tree decorated well into January. After divesting the tree of it’s ornaments, we sawed off the branches while the tree was still standing, leaving a few attractive stumps. The branches were easily disposed of without upsetting the sanitation department. We then sawed off the part of the trunk that had been standing in water and were left with a 6+ foot tree trunk.

Comparing Cost of Living

December 27th, 2008 LivingAlmostLarge

We keep discussing what is “rich” and what is “poor”. We are all living in different areas of the country. Thus our ideas of what is affordable and unaffordable is very different. I had forgotten why I wanted to leave the area I’m currently living in until I read this article in MSN comparing cost of living areas.

Living in the top 5 cost of living area means it costs a $100k more for a comparable lifestyle in a lot of areas I think are nice. I could bear to live in Colorado, Fresno, or Albuquerque. Honestly, I think where I live sucks because the cost of living is high and the weather is poor. I could deal with one or the other but both? Yuck.

What about you? Do you think that the cost of living where you live is reasonable? Do you want to move because of the cost of living or other reasons?

Roundup

December 26th, 2008 Ashley

Hello everyone!  I hope you had a great Christmas.  We did.  My big presents from my husband were a string of pearls, a heart necklace with diamonds, and a GPS for the van.  All of which I love.  I got my husband a big tool set of Craftsman tools and a drill.  My daughter got a digital camera.  I was worried about that since it wasn’t something she asked for, but she seemed to love it.  And my son’s favorite toy so far wasn’t even from us.  My brother in law got him a scooter and he’s been riding it everywhere he goes.  I don’t think he will ever walk again.

But I’m taking a break from cleaning up the Christmas tornado to highlight a few of my favorite posts this week….

Guest Post - Tax Planning 101

December 26th, 2008 LivingAlmostLarge

My name is Robert D Flach. I am a tax professional who has been preparing 1040s for people in all walks of life since 1972. I have been writing the popular tax blog THE WANDERING TAX PRO since 2001 and the NJ TAX PRACTICE BLOG for tax professionals who prepare NJ tax returns since June of 2006. In addition I also write about taxes for various professional publications and websites. Check out also my new tax blog TaxProServices and my writing blog Robert D. Flach.

Tax Planning 101

You are paying too much income tax – and it’s nobody’s fault but your own! You do not have to wait for Congress to pass a tax cut – you can enact your own personal tax cut with careful tax planning.