Over the holidays, my husband’s family spent quite a bit of time with us. His brother mentioned that he is expecting a nice, large tax return. “I use it as a sort of savings account,” he said. “That way, I know I’m getting something back.”
Before I could help myself, I blurted out: “But why? You’re giving a free loan to the government. That’s money that could be working for you!”
My brother in law’s remark isn’t really very rare, though. Many people view their tax returns as a sort of savings plan. They don’t claim all of their exemptions when they fill out their W-2 forms, or they have extra money withheld from their paychecks for taxes. That way, when the end of the year comes and it’s time to prepare the tax return, a tax refund is offered. In fact, the IRS reports that the average tax refund is more than $2,000. While that is a nice chunk of change, getting it back from the government isn’t exactly the most efficient way to build wealth.
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A Mcdonald’s combo now costs $7 but it used to be less than $5. Then again, the McChicken sandwich used to cost $2.45 and it’s only a buck now.
Inflation is a phenomenon that most people hear about often. The media reminds us of it, our financial planners talk about it and if you need a play by play, just talk to grandma for the nickel Coca-Colas that they save their money to buy.
Inflation is real, inflation is scary and inflation will erode our purchasing power. But yet, inflation is exaggerated.
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Most people in this country have at least one subscription that they pay for regularly, be it a magazine or newspaper. For newspapers, It’s a waste of money under the best of circumstances because news is fresher online. I mean, even small, local papers have an online edition. For magazines, even if you really read them, can still be bought using creative ways for a cheaper cost.
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Seriously.
You think I’m just joking, but retirement is no laughing matter unless you already accumulated millions and retired early (in which case you can laugh out loud 24/7). I think everybody should max out their Roth IRA, right now.
Here’s why.
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Doh. My career isn’t even close to the top of the list of best jobs in 2010.
Most of us do something to earn a living. Some call it a job, some a career and others claim it’s a passion. That’s important, because our classification denotes how we feel about it. But have you ever wondered how others think your “job” fairs among the thousands of careers out there? Now you can. According to CareerCast, the top 10 jobs of 2010, along with their respective starting salaries are:
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The start of the year is a great time to think about SMART goals, but it’s not enough to blindly follow this widely popular approach.
SMART goals. You know, specific, measurable, agreed upon, realistic and time-based. There are slight variations floating around (as listed below), which gives it a more comprehensive definition:
- S – specific, significant, stretching
- M – measurable, meaningful, motivational
- A – agreed upon, attainable, achievable, acceptable, action-oriented
- R – realistic, relevant, reasonable, rewarding, results-oriented
- T – time-based, timely, tangible, trackable
But something is missing. Consider these examples that fit the definition:
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