The Uglycow Finance » budget

The Family Budget in Five Steps

admin — Wed, 02 Mar 2011 11:53:57 +0000

Here are these steps with some patterns of importance that should be considered. These are the steps you take to make a budget, also visit How to Make a Personal Budget for details of a budget and various links to drafts of budgets and Excel tables:

1. “Enter your monthly net income”
No matter where you come from: Work, spouse, child support, unemployment, charity, tips, etc. If your income varies, try to put an amount that is average. Please show only net income, which brings her home.

2. “List the amount you deposit monthly savings income to net”
Saving is very important and should be done first spending. Ideally at least 10% of their salary.

3. “List your fixed monthly expenses”
Consider what the expenses that must always be paid are. Note that the first thing you have to list your needs: shelter, food, transportation, communication, etc.

4. “List your variable expenses”
Now make a list of these expenses that may not happen every month but that should always be taken into account: shopping, special events, Christmas, holiday travel, etc. “To get an estimate of your monthly expenses total the variable and fixed expenses and divide that number by 12.

5. “Make a list with an estimate of extra costs”
Always keep in mind that there are contingencies for which you need money, this is not necessarily an emergency, may be going to the movies, eating with friends, order food to go, etc. We need this line because we are not robots, and the opportunity to have a margin of error (and fun) is always necessary even with the tighter budget.

It is important to know where your money is going to understand how to grow. The budget is essential to be able to allocate more money to your financial future. Just think, if you save $ 5 each business day breakfast / lunch / coffee from Starbucks could have saved $ 13,000 in ten years. Many people call this the saving fund “Latte.”

Unemployment compensation: Do I have to Pay Taxes?

admin — Sat, 12 Feb 2011 06:42:01 +0000

The IRS has a very interesting newsletter frequently asked questions related to job loss and its relation to taxes, here are the most important guidelines:

The following Questions and Answers provided by the Internal Revenue Service (IRS) to clarify the financial implications related to the taxes faced by employees who have lost their jobs, have provided references for additional information.

“Severance pay is taxable?

Yes, severance pay is taxable in the year you receive it. Your employer will include the amount of these payments on Form W-2 and is going to withhold federal and state taxes, for additional information see Publication 525.

How about the hours accrued vacation or illness?

Yes, the annual pay or accrued vacation or sick are calculated by the employer as part of their salary and will be included on Form W-2.

Is Taxable Unemployment Compensation?

Yes unemployment compensation has been paid (up to 26 weeks) and extended benefits (up to 13 additional weeks) are taxable. You can choose to be 10% percent withheld for federal taxes by completing Form W-4V. The state will provide a Form 1099-G by 31 January each year, showing the amount of taxable benefits paid the previous year. For additional information see Publication 525.

* Temporary Suspension of a Portion of Tax on Unemployment Benefits Every taxpayer can leave out the gross income up to $ 2.400 for unemployment insurance for tax year 2009. Unemployment insurance over $ 2,400 is subject to federal income tax. People who receive unemployment benefits in 2009, should check their withholding to make sure that no withholding tax are unnecessary.

Is there a Continuation Grant Premium COBRA Health Insurance?

Workers who have lost their jobs may qualify for a subsidy of 65 percent by the Act of Settlement Budget Allocations (for its initials in English COBRA) premiums for themselves and their families will continue up to nine months. Eligible workers will have to pay 35 percent of the premium to their former employers. To qualify, a worker must have been involuntarily terminated from September 1, 2008 and December 31, 2009.

For more information on COBRA subsidy is available from the Department of Labor.

If I am eligible for Public Assistance or Food Stamps, are these taxable?

No.

When I will get my last Form W-2 from my employer?

Employers are supposed to provide Forms W-2 for 31 January, after the close of the calendar year. For example, W-2 forms for the year 2010 should be sent to employees no later than 31 January 2011.

What I can do if you owe taxes and I cannot pay?

Contact the IRS as soon as possible to request a payment plan. Communication is the key to minimizing the problems.

Is help available especially with regard to unresolved tax problems that cause more trouble?

Yes, if you are experiencing economic harm, a systemic problem, or is seeking help in resolving tax problems that have not been resolved through normal channels, you may be eligible for assistance from the Taxpayer Advocate (TAS) . You may contact toll-free at 1-877-777-4778 or TTY / TDD 1-800-829-4059.

Copies of all publications of references found on the Internet page of www.irs.gov, or call 1-800-829-3676.

Saving to Build Wealth

admin — Sun, 23 Jan 2011 00:12:55 +0000

Building wealth is like building a brick wall, you put a brick on top of another and make sure the wall is solid before you put another. So too is the savings as the basis of fortune and realistic goals are needed to accomplish each step before proceeding to the next.

The power saving has to do little by little, baby steps. Every athlete began crawling. When you accumulate wealth quickly (although you can achieve) can be easy prey for scams and deceptions which can cost us in the long run.

Fortune cannot make overnight. A good goal is a savings account for emergencies. An emergency savings account is money set aside to cover expenses if you lose your job or suffer an injury that prevents you from working.

Many people realize that small changes add up to big savings. To create a budget you need to know how much you spend each month, and then compare that figure to your take home pay. Once you have established a budget and a few weeks, you can see what to cut. If you spend less than you earn, you will have money to save.

If you spend $ 10 on food for work every day, and you can change this habit of bringing food from home for only two days a week can save $ 20 a week, $ 1040 each year, $ 10,400 in ten (not including interest rate, which could take up to $ 15,000).

Financial goals are personal goals you set in your life. They are often classified into the categories of short and long term. Knowing your goals can save for them. The short-term goals are ones you want to accomplish in a year or two, such as finishing your education or buying a car. The long-term goals may take more time to reach five years or more to be in a position to buy a house, and more time to save enough for a secure retirement or college education of their children.

The advice I always give is to achieve the goals that convert into small goals. Our mind has a greater capacity to deal with goals and small quantities, but in the long term these are big goals. If you want to save $ 20,000 in ten years to your mind this may be a lot of money, but if you cheat and say they are $ 40 dlrs each week she will believe it and not know who is doing the same thing.

Five Ways to Reduce Your Expenses without Make a Ritual of Sacrifice

admin — Mon, 17 Jan 2011 23:25:35 +0000

Here are some ways that you can change your spending habits to save a little. Sometimes the key is not sacrificed, or stop living (as we sometimes feel), but try to make some small changes that help us continue doing what we want, but with a little more creative.

Invite your friends to your home
Sometimes I do not want to accept the reality that most of our salary is going to happy hours because the 3 or four hours you use for socializing. For some it is the club, for others it is the cinema, etc. At the end we want to have fun, and this can happen to a meeting in the house. Whenever the party is in a suit (this dress or suit that) and that the tasks are shared it may be a night of fun, affordable cocktails and without the need to have a designated driver.

Extra kitchen to take to work
If you usually buy your lunch around your work, you can spend less if you cook an extra meal the night before and prepare for lunch the next day. The money we spend on lunch tendency has become one of the biggest expenses we have in the separate budget of our needs (home, car, etc.)

Change the yellow bulb
This has changed in many of our homes, but electricity consumption may decrease dramatically if you are more aware of consumption in your home. When replacing appliances, exchange them for what they have better energy efficiency (Energy Star), replace your bulbs to those that are more efficient. You can also cover the windows (if you live in a cold place) and keep the house warmer in order to save on heating.

Shopping at stores with better deals.
If the product you buy costs less at another store that you are going more often, (and not a hoax or anything like that) to buy in place that gives you the best deal. Try to buy in bulk when possible and always looking for prices on the Internet to find out if you’re getting the best deal.

Purchase later seasons.
Are you part of my family and expect a gift from me for Christmas, it’s safer that bring the Magi (or the old Bethlehem). The reason is that after the Christmas holiday shopping in a large majority have shot deals. You can save a lot if you can convince your children that some of the gifts had to be for another shipment that Santa Claus does.

Most importantly, think what you can do with this money you could save in your lunch, your parties, your purchases, etc… This is a list of things that you can now think for reducing these costs as:

* A house
* A Car
* The education of your children
* Your retirement in a Caribbean island.
* The cruise on the Mediterranean Sea

Imagine, if you ask: And who paid for this trip? And I say: My lunch.

Why You Need a Quote?

admin — Thu, 13 Jan 2011 01:09:45 +0000

A large part of the articles I write mention how important it is to have a budget for a financial life. There is talk of saving a life with manageable debt and have the exact amount you can spend (or you have to make) to achieve your financial goals. A client asked me: “But I need a quote?” In addition, I replied with the following reasons. Then I asked colleagues about why the great need for a budget and they gave me other reason they are here too, do not forget to leave yours in the comments:

The budget helps you save.

If you do not know how much you spend, and how much you have left to your financial goals, it is very difficult to get money other than our income for saving. A budget will help to allocate an exact amount that you subtract from your paycheck and transferred to your saving account without having to first find out “how you left over.” L key to financial freedom is to pay yourself first.

The budget gives you statistics.

You cannot improve what you do not control. When you budget your expenses you a report of how you spend your money and you can do to improve your habits, you’re in control! The budget will help you understand the steps you must take in order to save more, or help you understand more quickly you need to earn more money.

Discipline will help you succeed.

The personal finance guru Dave Ramsey explains that personal finances have more to do with behavior than with mathematics. So the reports that the out of debt and achieve financial independence is compared more to a diet and reduce weight. You need to be disciplined and make some sacrifices in order to succeed. The budget helps you identify the things you should sacrifice and establishes a plan of how to reach your goals.

What colleagues say:

* “The problem with a budget that people usually complicate life with many rows and exact amounts. A budget should be flexible so you can still meet your needs and your savings, you can do whatever you want with other money. ”
* “A budget is the truth. It tells you more about your finances than you ever imagined. ”
* “Money is chaotic if a budget.”