Living Within Your Means

It appears that in the space of a generation, we’ve lost all the good common sense and financial principles that our parents and grandparents used to display.

The generation before us practiced frugality and ‘living within their means’. These post-war babies avoided debt and saved for what they wanted, avoiding luxuries and taking pleasure from life.

This generation has grown up with a very different ethos. Aspirational lifestyles and the belief that luxury and celebrity status is something we all deserve are commonplace, with credit card limits to match.

High interest loans, the array of expensive credit cards, endless payment terms and hire purchases for cars and costly items we can’t afford. Mortgages and rent beyond our means and designer clothes designed to impress.

Consequences

We’re all now suffering the consequences of living beyond our means. Consumer images, marketing, advertising and ‘reality TV’ have all played a part in increasing our expectations and desires.

Sadly, wages and income haven’t kept pace and for many of us and debts have spiralled into problem levels. Individual credit and store card balances once totalled, become huge.

The reality 

We’ve stopped cooking from scratch, instead choosing to buy expensive ready meals. We’re often too busy to hunt down better prices, so we shop for convenience and pre-packaged goods.

We drive everywhere, rather than walk or cycle and believe that our children really need to wear designer baby-wear to give them the best start in life.

Time to Act

Now, reality is upon us and lifestyles have to change as the reality of the credit crunch and national debt has led to a shocking and often painful shift.

Households everywhere are finally realizing the need to start saving like crazy, paying off debts and learning the skills that our grandparents once demonstrated.

Website forums abound with tips to save money, with consumers urged to bring out slow cookers, switch off lights, join purchasing co-operatives, use vouchers and take ‘staycations’.

The process has been hard to adjust to, but at the same time, it’s interesting to see how the simpler, non-debt ridden life is being embraced by increasing numbers of people.

A return to simpler pleasures and less purchasing and consumption may yet see an increase in family time, exercise, fun, social events and community spirit.

Rather than chasing down prestigious jobs, which might later be lost, perhaps more people will aspire to own less.

Already, large numbers of educated people are escaping the modern consumerist lifestyle and opting for a simpler, more old-fashioned way of life based on self-sufficiency, family and community.

It will be interesting to see what the next generation brings – those who have lived without want, then through recession and with a passion for green issues and protecting the environment.

Perhaps our children will be less inclined to consume and accumulate and more likely to return to the kind of genuine riches that a happy, balanced life leads to.

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Following are a few mistakes that you should keep in mind while trying to mend your
retirement spending debt.

1. Do not just make the bare minimum payment on your credit card debts. If you use
a surplus amount of your fixed credit on the credit cards, it could have a negative
effect on your credit report. When you make the minimum payments, it can in
actuality enhance the amount of your debt that you need to pay off.

2. Beware of counselors who ask over for payments before your work is done. Refrain
from credit counselors and companies who charge lofty fees and don’t execute their
tasks properly.

3. Avoid falling into the snare of obtaining high interest loans in order to pay off loans
with lower interest rate. A single payment might seem quite unproblematic for the
time being, but your payments will increase because of the huge amount of interest
you are gathering.

4. Consider bankruptcy as your last resort. Often people fail to realize that settling their
debts would be much beneficial for their economic troubles. Except for situations
where bankruptcy is absolutely unavoidable, do not go for it since it remains on your
credit report for a very long time.

5. Avoid depending on your family and friends for economical help. It could do some
lifetime damages to your relationships.

It is advisable to consider the above points while you attempt to settle your retirement
debts. Don’t be scared to take pleasure in your retirement, but be careful of getting into an
overwhelming amount of debt. Stay responsible and pay your debts off by cutting on few of
your unnecessary expenditures.

Buying a car or a house is usually the starting point in the steady downward motion of going into debt. For some, after that initial step, it is hard to stop. Without meaning to, those people get into a lot of trouble.

Getting into debt on your own is fairly easy, but getting out of debt on your own is much harder. Finding non profit debt relief can help you get out of debt faster and help tone down the stress levels in your life. Avoiding mail and phone calls about money you owe will not make debt problems go away.

Non profit debt relief can help you by reducing monthly payments, interest rates, late fees, and over limit fees. It can also help you to combine your bills into just one monthly payment. Having just one monthly payment can help you keep better track of what you are paying off and how far you still have left to go.

Choosing the right non profit debt relief management company can seem scary because you have to be able to trust them with your debt information. To be sure you are going to the best businesses check to see how they are making money. The most obvious way these businesses make money is through donations. These are usually good because they have an obligation to help you get out of debt and turn your life around.

If you need to get out of debt, deal with the problem and get help sooner rather than later. Dealing with the problem sooner can help you get out of debt more quickly and even help you save money in the long run.

Empty commercial property rate relief should remain in Scotland in order to help the industry, it has been said.

The Scottish Property Federation (SPF) has called for the rate relief for vacant premises to remain, saying the fragile economy would not be able to cope if this was to be scrapped.

Director of the SPF David Melhuish has said the Scottish government must do all it can to encourage business to prosper and this includes taking away the vacant property development tax.

He spoke following the news that the number of businesses for sale dropped in the first three months of the year by 50 per cent.

This takes property investment totals to £401 million for the first quarter, down from £828 million during the previous three-month period.

The transaction this year are also 25 per cent lower than that seen during the first quarter of 2010 at £610 million.

Mr Melhuish said if the rates were to be reinstalled for empty premises, which would impose full business taxes on unoccupied properties, this would affect areas that are already economically disadvantaged as this is where most of the empty real estate is.

He noted that this move would therefore have an impact on smaller companies looking to buy a business the most, saying: “Empty rates would be a tax on hardship at the worst possible time.”

Mr Melhuish stated the government must be “careful not to penalise failing businesses during this prolonged economic downturn”.

The property expert recently looked at England as an example of what would happen if rates were reintroduced, saying it has “been catastrophic” for the nation.

As a result of the change south of the border, many buildings have been destroyed as smaller businesses have not been able to keep up their tax payments and therefore the properties had to be demolished.

REVIEW THE PREVIOUS YEAR FOR LIFE CHANGES

There are many variables that could affect your tax status.  If you got married, quit your job or found a new one, or moved to a different residence, your tax requirements will likely be altered.  There are many tools available on the Internet to help you calculate how these changes will affect your tax rate, including at the IRS’ website.

GATHER ALL YOUR RECORDS

You will have to prove that you are eligible for any tax credits that you want, so make sure you have kept records of all your purchases, including receipts, bills, statements, and proof of payment for various expenses, such as child care, education, and transportation.  If you have hired a San Diego CPA, these records will make his job much easier, meaning your taxes will be more accurate.

USE YOUR REFUND TO PAY OFF CREDIT CARDS AND LOANS

According to many San Diego tax accountants, credit cards are among the leading causes of financial difficulty and out of control debt.  The longer it takes you to pay off your credit card debt, the more you will have to pay, so it is a good idea to pay off as much of your credit card debt as possible, as quickly as possible.  You should also put money down on any other high interest loans you might have since you will have to pay more for these as well the longer it takes you to pay it off.  Remember that the interest charged on your loans is probably a higher rate than the interest you would accrue from saving the money, so getting rid of these debts is your first priority.

CREATE AN EMERGENCY FUND

Few people have money tucked away for emergencies.  If you do not have an emergency fund or account, you might consider starting one with your refund money.  The government recommends setting aside three to six months worth of living expenses in a separate savings account or in a CD, where it will not be touched and, therefore, will actually be there when an emergency happens.

Without a renters insurance policy, you’re risking going deep into debt. Think about it – how much would it cost to replace all of your clothing, furniture, electronics, etc. if these items were lost? Let’s go over some basics to renters insurance so you can keep your costs as low as possible but still be protected in case there’s a problem. Here as some frequently asked questions about renters insurance:

• How much will it cost?

You’ll be happy to know that renters insurance policies are extremely affordable. The national average is just $15 to $20 per month, which is less than most people spend on coffee. In actuality, you can pay even less if you live in a safe neighborhood or install “safety items” like smoke detectors or dead bolts.

• How much coverage do I need?

That depends on the value of your possessions. Most people want to have around $100,000 in liability insurance (i.e., insurance if a guest gets hurt in your house), but you’ll likely only need $15,000 to $20,000 in insurance for your possessions. Some companies offer even lower policy amounts.

• How much money will I get if there’s a problem?

Depending on your policy, you’ll either receive true value or replacement value. True value (also sometimes called market value) policies are less expensive, since you’ll receive the depreciated value of your items. Replacement value policies, as the name implies, give you enough money to buy completely new items. Make sure that you do an insurance inventory so you’re prepared to prove value in case there’s a problem at your property.

Ready to learn more about renter’s insurance and how it can help you stay out of debt? Head to www.RentersInsurance.org to learn more!

By planning for the unexpected, people can circumvent a majority of the financial problems that life tries to toss their way. Through emergency funds, individuals can set aside a certain amount of cash that will cover their basic living expenses in the event of a financially draining event such as a car wreck, long-term sickness or even a job lay off.

Setting up an emergency fund is simple, and people can begin to accumulate savings through a few easy steps:

1.       Decide what goal you want to meet with your emergency fund.

Do you want to save for three, six, nine, 12 or 18 months? Three or six months is often the standard for emergency funds; however, it is best to save as much money as you feel comfortable saving. After all, this fund will be your money source if all other income goes away. Consider your current living expenses and any variations in them and plan accordingly. Don’t be afraid to err on the side of caution; you’d rather have too much saved up versus not enough.

2.       Choose the type of account that will house your emergency fund.

You might consider using a high-yield savings account. These types of accounts typically offer a high annual percentage yield (APY), which means you’ll earn more money for each dollar you put into your account.Another viable option is certificates of deposit (CDs). When choosing any type of account, make sure you understand if it’s a variable or fixed-rate account; that way you are prepared for any fluctuations in your interest rate.

It’s also important to consider factors such as ease of access to the money and any penalties associated with withdrawing the cash. Ultimately, you want your emergency fund to be safe and available when you need it – but not so available that it’s tempting to make small withdrawals. Typically, the higher the interest rate, the harder it is to liquidate the savings. Always keep in mind that the purpose of this account is to grow money gradually and safely, not aggressively.

3.       Save, save, save!

Once you have an account set up, it’s time to start saving. As with many things, establishing regular saving habits comes with time and must be intentional. An automatic transfer of cash into your account is a convenient and reliable way to make sure you always contribute money to your emergency fund. You can have this money transferred from a paycheck, checking account or other account that has money flowing into it. Working with your bank or credit union representative, you can determine if your transfers should be monthly, bi-weekly, etc.

To determine how much money to contribute to the savings account regularly, analyze your spending over a month’s period. Determine your realistic living expenses for the allotted amount of time that you want to save for – three months, six months, etc. – and then calculate an affordable amount of money that you can put into your emergency fund on a consistent basis.

By taking these simple steps now, you can be well on your way to having a solid emergency fund in place. Hopefully, you’ll never need it; but if the unexpected happens, you’ll be well-prepared and financially better protected from any debt incurrence.

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Northwest Georgia Bank is proud to be a leadingChattanooga business bank that offers customers sound financial advice and services that includedirect deposits, free business checking, individual retirement accounts and more.

What Is a Tax Amnesty Program?

The first thing to remember about a tax amnesty program is that you will still have to pay your taxes – the debt will not be completely forgiven. However, the interest and penalties may be diminished giving you the opportunity to catch up. Tax amnesty only applies in certain situations for qualified individuals or businesses. Basically, it gives people who have not filed their tax return on time, or have made mistakes on their return, to take care of the problem before they are subjected to prosecution.

Qualifications

In order to qualify for a state tax amnesty program, you must meet certain criteria. The qualifications vary from program to program, but there are a couple of constants. Usually if you are under investigation or are being prosecuted for tax evasion, you won’t qualify for a tax amnesty program. Other than that the rules are fairly broad, with each program containing its own set of rules. Federal tax amnesty programs typically apply only to certain organizations or some particular tax or duty that is owed. They usually don’t apply to income taxes. Consulting with an IRS representative or your tax attorney is recommended in order to find out whether your particular case qualifies.

Applying for Amnesty

After meeting the qualifications you will be required to sign a settlement agreement which outlines your responsibilities, including the amount you owe and a deadline for payment. The details of the form will vary from state to state, or program to program, but are basically the same. You will be required to identify yourself – these programs do not allow for anonymity – and the amount of actual taxes owed must be stated. If you’ve made a mistake, whether deliberately or otherwise, now is the time to declare it. A date will be assigned at which time the debt, usually including interest, must be paid. In return any penalties that would usually apply will be either forgiven or diminished, and you won’t have to fear being prosecuted. Before signing a settlement agreement it would be a good idea to consult a tax attorney for advice.

Settlement Agreement

The settlement agreement will lay out the terms of your particular case, including your total fiscal responsibility and due date. It may also include a requirement for you to pay future taxes in full and on time. Failure to do so could mean even harsher penalties in years to come. It is not a document to be taken lightly. You should view this as an opportunity to clear the record and start afresh.

Paying Back Taxes

Whether your tax troubles are with a state government or with the IRS, there is typically a small window of opportunity in which to make amends without fear of prosecution. If you owe or must file back taxes, it’s your responsibility to see that they’re paid. A tax amnesty program usually offers you the opportunity to do that without going to jail. In most cases, you will still be required to pay your entire tax debt, including interest, but some or all of the applicable penalties may be forgiven – and you’ll avoid prosecution.

It’s Your Obligation

If you apply for, and are accepted into a tax amnesty program and fail to meet your financial obligations within the designated amnesty period, your penalties could be severe. You will probably not be required to pay everything you owe in a lump sum – payment options will probably be made available to you, including monthly payments in some cases. The most important thing to remember is that you’ve been given a second chance – that’s what amnesty is.

Guest post from Bailey Harris. Bailey writes for www.insurancequotes.org

Before making a decision, consumers will want to make sure that these five statements are true about the company they choose:

1. A good debt relief company will be affordable.
Before choosing a company, make sure that you understand how much the program will cost. A competitively priced program will cost no more than 15% of what the consumer owes. Before enrolling in a program, determine how much you can expect to pay each month. If the program doesn’t fit into your monthly budget, the company obviously is not the right one for you.

2. If the company does not deliver, they will refund customers for the cost of the service.
Before requiring payment, debt relief companies should send customers a written contract that lists exactly that the program entails. If the debt relief company does not honor their end of the contract, you should be entitled to your money back.

3. An experienced debt negotiator will be able to answer all of your questions.
Make sure to approach the debt negotiator with any questions you may have. If he or she cannot answer simple questions about the negotiation process, how the program may affect your credit, or associated fees, the company may not be the best one for you.

4. On the other hand, the debt negotiator should have plenty of questions of their own.
To assess whether your creditors will be willing to negotiate, the company will need to know about your financial history. The company should be asking about account history, recent large purchases, bankruptcies, and other important information.

5. Good debt relief companies have good reputations.
If past customers did not have a good experience with the company, there is a good chance that you won’t either. Check with the Better Business Bureau before enrolling in a debt relief program. The right debt relief company will have a reputation of providing honest and effective service.

Companies looking to expand their commercial property for sale portfolios may find it difficult as there is a lack of office space in the UK.

While demand for real estate is at a high, there are simply not enough units in Britain’s major cities to fulfil interest from potential investors.

A report released by Jones Lang LaSalle (JLL) on the property investment opportunities in Edinburgh revealed just as much.

It showed that while there is some available space in the city, this is not enough to cover the number of firms looking for properties, NeedOfficeSpace.com reports.

This is because findings from the specialist revealed that between 2014 and 2018, 20 per cent of companies with offices in the Scottish region will have their lease expire and therefore more companies will populate the market place.

Cameron Stott, director at JLL in Edinburgh, stated that supply is “gradually being eroded”, due to the number of firms looking for new and improved locations in the city.

“A lot of firms don’t want to move into the town house offices now, they are looking for modern facilities,” he said.

This could be a concern for businesses based in Scotland who are hoping to invest in real estate there, as they will be up against a lot of other firms doing the same.

Mr Stott remarked that the “short-term picture is still pretty tough” and expressed his worry that the situation will only worsen when occupiers lose their leases.

But Edinburgh isn’t the only UK city with problems of office space as London is also experiencing a deficit of available properties and the possibility to buy a business.

Indeed, earlier this week, Capita Symonds revealed that the capital is set to suffer the worst shortage of Grade A office units since the 1980s.

A lack of new development projects is said to be the reason behind this and areas on the edge of the city could become popular locations for commercial property investors.

Director of Capita Symonds James Gillett said firms may consider purchasing in Stratford, Greenwich and King’s Cross.

“Those who took the plunge and invested in the central London office market over the last 18 months have good cause to celebrate,” Mr Gillett added.