Sharing insights since 2007 on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom!
While I’ve heard plenty in the news about the debt crisis in Europe, I have to admit that I haven’t paid a great deal of attention.
Not only are the roots of this crisis very difficult for a lay-person to understand, but it seems as though the economic woes in Europe are pretty far removed from my life.
But two months ago, the American company that employs my husband announced that it would require temporary layoffs among its workers — a reaction to the depressed market for the company’s products in Europe.
Admittedly, there are other factors influencing the financial troubles of my husband’s employer. But, the fact that our family would have to handle a temporary layoff, partially due to this crisis, made me realize that the financial problems across the pond can very much affect our finances in the United States.
Here’s what you need to understand about the European debt crisis’ potential effect on American businesses and finances:
It’s hard to avoid discussions of the so-called fiscal cliff that’s looming at the end of 2012. We can only hope that our leaders hammer out a compromise before the deadline. But if we do end up “falling off” the fiscal cliff, who will be most hurt by the changes? There are three groups that can expect next year to be quite financially painful.
My husband gets razzed quite often about his choice of vehicles. He can fix everything, drive anything with at least two wheels and a motor, and is a trained maintenance mechanic and autobody technician. You’d think his vehicle would look spectacular, right? Wrong.
That’s because my husband is also quite skilled at squeezing a penny when motivated. So, he drives a 15-year-old Blazer that he bought eight years ago for $200. This beauty boasts over 300,000 miles and a patchwork-quilt style exterior. And when the snow’s deep and the roads are impassable, he pulls out a 25-year-old bigger version of his daily ride for added weight and safety.
Now, don’t get me wrong; he has a sparkling, gorgeous beast in the garage that he can drive anytime he wants, but he chooses the clunkers 99% of the time. Why, you ask? Because it’s smart. You see, while he’s driving around that clunker, his nice truck is inside, away from the frame-eating solvents on the winter roads — all the while maintaining its value and low mileage.
Here’s how having an older vehicle for winter driving will save you money:
The bank is a great place to keep money safe and readily available, but how much money do you really need to keep in your savings account?
My wife and I are facing this exact question. With a transient lifestyle and a plan to head south in January, we need to have a buffer in our account, but are unsure how to determine the appropriate amount.
There are a number of things to keep in mind when deciding how much liquid cash you should keep in the bank.
You’ve undoubtedly seen all of the news about the impending “fiscal cliff.” Whether you understand it or not, there will be consequences if we “fall off” at the end of 2012.
One potential change to our tax system has to do with estate taxes.
Currently, heirs do not pay federal taxes on estates smaller than $5.12 million. Above that point, they are taxed at a rate of 35%. If lawmakers don’t enact changes before December 31, 2012, estates over $1 million will be federally taxed at 55%. This could clearly become an enormous burden to many families.
While it’s possible that the government will act quickly to keep us from going off the fiscal cliff, it’s smarter for you to plan as if they won’t. One important strategy for avoiding the worry of estate taxes is through the judicious use of life insurance.
Will they like it? Is it within my budget? Is it a quality product? Do they already own one?
These nagging questions often cause me to walk out of stores empty-handed during the holiday season. Instead of busting your budget to get gifts that may not be loved, why not try one of these 7 inexpensive (or free) holiday gifts?
Free signup to get a free ebook on How to Save Money on Everything! Constantly expanding, it will be the biggest money saving ebook available, and it's FREE! →
(I hate spam and promise that your information will never be shared.)
