One of the things that dawned on me as the plumber came to my home last week and began installing a sump pump so that my basement wouldn’t (hopefully) flood again, is that many of us pay quite a bit for convenience. We know that convenience costs money, whether we pay a $3 “convenience fee” when we buy concert tickets online, or whether we pay someone to do something we can’t do ourselves.
As I write this, I’m a victim on my own procrastination. Since early Fall, I’ve put off getting my annual flu shot even though I know I have a house full of grubby children that bring home every germ known to mankind and we get free shots through our health insurance. Today? I am writing this from my sickbed, a glass of some sort of foul tasting vitamin C drink on one side and a box of tissues at the other. Lesson learned.
While procrastination doesn’t always literally make you sick, it can seriously affect our ability to reach our financial goals. We’ve all seen the charts that demonstrate the startling difference between starting retirement savings in our early 20s as opposed to our early 40s. Similarly, putting off paying bills can cost us in late fees, service interruptions and other serious consequences. When it comes to our money, it generally doesn’t pay to put off until tomorrow what we could be doing today.
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I always assumed that we should all contribute as much as we can to our 401(k) accounts. After all, an employer sponsored retirement account allows our savings to grow tax-free, which is a major benefit, especially for those of us in higher tax brackets.
Maxing out your 401(k) means contributing the maximum dollar amount permitted for the current year. The annual contribution limit for 401(k) accounts is $16,500 in 2010 and in 2011. If your annual salary is, say, $100,000 per year, that’s 16.5% of your pre-tax income, which is a good amount to save annually according to experts.
But even if you manage to save that much, should you put it all into your 401(k)? Some say you shouldn’t.
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According to the Pew Research Center, the percentage of American homes with landlines has dropped to 74 percent — in comparison to its 2001 peak of 97 percent. The number is dropping with increasing speed, and there are plenty of reasons why.
For most households, a cell phone is more useful — and why should you pay two different telephone bills? For others, there are still telephones other than cell phones in the house, but they use VoIP, rather than a line connected by the telephone company. Either way, getting rid of the landline comes down to cost. If you’re thinking about doing the same, here are some things to think about.
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Many of us will make the resolution to become more physically fit in the coming new year. Exercising and eating well are great investments in our future health and will help save money on health care. The good news is that we don’t have to spend a fortune to get in shape. Check out what you can do this year to stay physically and financially fit.
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Unemployment is still close to double digits. Tax laws are governed by the state of the economy, and the government makes amendments from time to time mainly with a view to giving relief to tax payers.
If you have been unemployed for more than a year you still need to file a federal income tax return. It is important to remember that all unemployment compensation is taxable. In addition, because you may be in a lower income bracket, you may qualify for more deductions or different types of deductions than you have in the past. Also, keep in mind that certain job search expenses can be deductible for some taxpayers.
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