After the two-decade shopping binge that was the 90s and 2000s, pretty much every American can claim an enormous abundance of once-used, rarely-used or even never-used stuff lying around the house. Back when the economy was booming and credit flowed like water, needing to use a tool once was a good enough reason to go out and buy it. But once the recession hit, many individuals found themselves looking for extra money, but unwilling to sell off their stuff. Luckily, somewhere out there is someone who needs to temporarily use the stuff you have and is willing to pay you for the privilege.
That’s the basic idea behind a new method of rental income. Websites like rentalic.com, zilok.com, and snapgoods.com allow you to offer up your goods for rent. Though most people don’t think about renting items other than apartments, cars, movies, or possibly sporting goods — and all of those from a rental agency — there is a real need for the ability to use an item temporarily. Not only does it save the renter money, but it also helps the environment, and generates income for the owner. It’s a win-win-win.
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Knowing why you spend is as important as knowing what you spend when it comes to developing healthy financial habits. If you’ve ever heard of the Love Languages, you might be interested to know that people have assort of financial love language as well.
Each of the six financial love languages reflects the psychology behind your spending habits. Read about these six motivating factors to find out which category is top priority for you when faced with the temptation to spend. If you were given a sum of money that had to be spent, not saved, which type of activity would you choose as a preferred venue? Rate each of the six categories from most important to least important to you.
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Being an economics major, I was well-prepared to handle my own finances. But budgeting wasn’t a walk in the part for me either, as I had to experiment before I found the right system. Don’t wait to experiment. Start tracking your dollars now. I didn’t have a lot to manage when I first started counting my dollars in college, but keeping track prepared me to handle more significant finances now. Like anything else in life, discipline is important. Keep budgeting high on your priority list and it will pay off in the future.
“But what if I don’t have much cash flow activity?” [ continue reading... ]
As you figure your taxes this year, you might be looking at the result and thinking that it would be nice if you could deduct just a little bit more from your income. Even though a tax deduction isn’t as valuable as a tax credit, it can still help you by lowering your tax liability and reducing what you owe overall.
Plus, if you are worried about finding yourself in the next tax bracket up, another deduction or two can really help. But it’s too late — the year has ended. Any deductions you take go toward your next tax return, right?
The good news is that you still have a way to make a deduction for the previous year. Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) allow you to make tax-deductible contributions up until tax day, so you have a chance to boost your deductions if it looks like it will help your cause.
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It’s still a few weeks until Valentine’s Day but I thought I’d go ahead and offer up some tips on how to make a big impression on Valentine’s Day without spending a ton of cash. Some of these ideas are a bit time intensive so now is the time to get started if you’re planning on doing something crafty or artsy.
1. A heartfelt love letter always pops up on these lists and for good reason; what better way to show somebody that you love them than in a sincere outpouring of your affection? I think that many people consider this idea but then fail to follow through because it can be intimidating and there is always the worry that you’ll come off less like a romantic, but more like a corny doof. As somebody who has been paid to ghostwrite her fair share of love letters and wedding toasts, I can offer these tips:
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My husband and I moved from Columbus, Ohio to Lafayette, Indiana in June of last year so that he could take a new job. We bought a house and moved in quickly, barely getting the place set up before our son was born on August 31.
If we had to do it all over again, we would have moved into a rental for a year prior to taking the plunge into home ownership in our new town. While the stress of having to move twice (we had to stay in a rental for six weeks prior to taking possession of our house, anyway) is a part of the reason why we might have been better off as renters, the main problem was financial. It took our Columbus home nearly a year to sell, and by buying a home right away, we ended up paying for things that would not have been our responsibility as renters. Paying a double mortgage plus these home expenses was particularly tough even though we managed.
While there are certainly great reasons for buying a home, don’t let anyone tell you that renting is simply throwing your money away. You are spending money on your lodgings, and avoiding larger bills that you might not be able to handle. The next time your Uncle Joe starts telling you how renting is a waste of money, remind him of these expenses that homeowners pay that renters don’t:
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