I love it whenever I hear someone talk about David Bach’s now famous term “the latte factor.”
For those that don’t know, the term refers to the idea that many people continually spend on small purchases (like a latte) that add up to a ridiculously large amount over their lifetime.
There are two reasons about it that intrigue me—(1) it’s totally true and (2) it’s totally misleading.
When it comes to hidden charges, you might be surprised at what you are paying for. In a number of cases, it probably doesn’t even occur to you that you are paying for something you rarely—or never—use. Here are 4 things that you might be paying for, even though you don’t use them:
A few months ago, I logged onto the website for my student loan in order to check on my balance—when I found that I did not have one. Suddenly, the $12,000+ I owed had gone down to $0.
I’m suspicious by nature, so rather than celebrating that some secret patron had paid off the rest of my education, I started wondering how this obvious mistake could possibly mess up my financial plans. I put in a call to my federal loan-servicing center, and I was told that my loan had been transferred to MOHELA, a Missouri-based loan agency. The transfer went through a full two weeks before I was informed by mail that it would happen.
My experience with MOHELA thus far has not been exactly positive. But putting my personal concerns about my new loan administrator aside, I wondered how the U.S. Government could legally transfer my federal student loan. Here is what I found out:
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Early in our relationship, my husband and I used to go shopping together at our local Sam’s Club. (Clearly, we knew how to get the romance going.)
I was new to warehouse club shopping and made the mistake of thinking that anything for sale within the huge store must be cheaper than at other stores.
After a couple of bad missteps — such as not finishing the ginormous container of strawberries before they went bad, and discovering that each razor replacement in the 12-pack I bought were the same cost as their 4-pack brethren at Target—I learned to be more careful about my warehouse club purchases. I’d check unit prices, keep better track of how much I spent at the regular grocery store, and go to Sam’s with a specific list of what I needed.
It’s also important to remember that some purchases will (almost) never be worthwhile at the warehouse club. Here are six examples of what not to buy at your warehouse club: [ continue reading… ]
High-earners are in something of a Catch-22 when it comes to saving for retirement. On one hand, they have the extra income available to fully fund tax-deferred retirement vehicles — but that extra income often disqualifies them from the accompanying tax breaks.
The IRS limits tax-deductible contributions to Traditional IRAs to those individuals who earn $69,000 or less, and married couples who earn $115,000 or less. Roth IRA contributions are limited to individuals who are making less than $127,000, and married couples who are making less than $188,000.
So, what are the best investment options for these high-earners? Here are three ways high-income individuals and couples can still put away money for retirement—without feeling overwhelmed by the taxman: [ continue reading… ]
If you still haven’t thought much about taxes, now is a good time to start thinking about your tax returns. Tax season is coming up and you need to be ready to tackle the many new tax laws and how it applies to your situation.
Part of getting ready, though, includes deciding whether or not someone else needs to prepare your tax return. Here are some things to consider as you make your decision:
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