Andy Hough

Previews, Coffee & Other Gratis Pleasures

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A cup of coffee, poured from the pot at the back table in the fabric shop. (Well, perhaps a cookie, too. Or three.) Internet surfing, served up cost-free at the local Starbuck’s. (The really frugal customers just order hot water…or bring their own drinks.) A weekend of cable, sampled during one of the previews – and you have no plans to subscribe.

Is it right to take advantage of these freebies?

Some say no. This isn’t a frugal thing — it’s swiping something you have no right to. Reading a book, lounging comfortably on a bookstore couch, with no intention of buying it, has the same grabby feel. (Even worse, copying recipes and such out before you return it to the shelf.)

Others argue that these free-and-easy pleasures are nothing more than making the most of opportunities. “Taking a business up on an offer they made freely is not stealing,” one comments.

The struggle is more, I think, in your attitude. It’s not the item, so much as the extent. If your neighbor offers an apple from their tree, do you sneak back late at night and strip their orchard, on the grounds they meant for you to take everything?

Going online for an hour at your local McDonald’s is one thing. (A large drink will only set you back a buck — a small courtesy.) Hanging out all day, especially if you purchase nothing, is another. Watching the preview weekend is fine — getting your neighbor to jack the cable box, so you continue to get it free, isn’t.

It’s hard to know sometimes when to stop, especially when your frugal urges kick in. One uncle, otherwise a kind and thoughtful man, can’t resist clearing off all the sugar and creamer packets on the table at the restaurant — on the grounds that they’re included in the meal. (I’ve wondered if he ever tried to stuff the ketchup bottle down his pants, for the same reason.) He would think nothing of grabbing all the courtesy mints in the bowl, as well, if he could get away with it.

But the sauce packets tucked in the Taco Bell takeout bag? Throwing them away doesn’t prove anything, except a willingness to waste. (Besides, they come in handy when bringing your lunch to work.)

One of the local hardware stores, bless ’em, has a popcorn cart out back, with bags to help yourself. That fresh, warm popcorn can hit the spot between errands. And a bag’s small. Maybe I should take several…wait a minute.

Are you taking more than one, when it’s clear that one is offered? It’s easy to do. Even worse, do you take a quick look around before you do it, just to make sure no one’s looking? Better stop — and check your attitude.

This post is by staff writer Cindy Brick. Cindy is a quilting expert with several published books on the subject and has also had many published articles on a variety of subjects. You can visit her business website at CindyBrick.com or visit her personal blog.

5 Money-Saving Tax Tips

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Warren Buffet once said, “It is the government’s job to get as deep as it can into my pockets. It’s my job to keep them out!”

Buffet, of course, was referring to paying taxes, and it is true. It is your duty as a wise money manager to take every step you can within legal boundaries to minimize your taxable income, and thereby minimize the amount of money you pay to Uncle Sam each year.

Education Credits and Deductions

University is expensive. The average college education, including food and room & board, typically runs over $60,000 for a 4 year degree. Fortunately, current IRS tax code makes it possible to deduct a portion of these expenses each year. Whether you are paying for a child’s education, or paying off college loans, one of these credits may apply:

  • American Opportunity Tax Credit
  • Lifetime Learning Tax Credit
  • Tuition and Fees Deduction

Child Care Credit

The majority of American families pay for some form of child care throughout the year, and it is not cheap. Even cheap daycare rates can costs parents thousands of dollars per year. Under the Child Care Tax Credit, parents are eligible to deduct 20 to 35 percent of qualifying expenses up to $3,000 for one qualifying child, and up to $6,000 for two or more qualifying children.

Gift Money

The government actually taxes you when you give money to friends and family on any amount over $10,000, but that minimum has now been raised to $13,000. This means you can offload some of your assets to children, parents, etc. at a rate of $13k per person, without paying any gift tax at all. This can increase your tax debt relief.

IRA Contribution
One tax shelter is an IRA. When you contribute to an IRA account, that money is subtracted from your taxable income, which results in lower tax payments to the government. Many people do not know, however, that one may actually contribute up to $5,000, depending on your modified gross income, before April 15, 2012, and the contribution will count for tax year 2011. This is a great way to save money last minute.

Mortgage Bill
Here is a little known trick. If you pay your January mortgage before December 31st of the current year each year, you may be able to deduct the interest for your January payment on your 2011 return. Now may be a little too late to do that this year, but keep it in mind for next year.

Green Expenses
If you make improvements to your home, which are environmentally friendly, you may qualify for a tax credit of up to 30 percent of what you paid. Furthermore, it is not only home improvements that may earn you a tax credit. Electric automobiles and some hybrids also qualify for tax credits.
File on Time
This may sound like common sense, but scores of people miss the April 15th tax deadline each year, and this costs money, increasing the financial burden on tax payers. The first step to saving money on your taxes is to make sure you pay on time and in full so that you do not get hit with late penalties and interest.

Consult a Professional
Knowing exactly all the deductions you may qualify for is nearly impossible. Therefore, it may be worth it to hire a CPA, or use a high quality tax software program, such as Turbo Tax, which can provide a number of additional possible tax breaks based on your personal information and financial situation.

February Income – $1831.07

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Here is a breakdown of my income for  February.

Online Income

 $1756.71

Interest

$3.17

Stock Dividends

$26.35

Cash Back

$43.29

Sell Stuff

$1.55

Total

$1831.07

February income was down substantially even considering there were two less days.  I knew the string of great months would end eventually.  I still made almost $2000 in online income so it was a soft landing.  This time last year I would have considered this amount of income a great month.  I think my online income should rebound slightly this month.  I’ll be hiking the last two weeks of the month though which could reduce my ability to make money.  Once I get back from hiking I will work more on increasing my passive income and alternative income.  And I’ll also work on diversifying my sources of online income so that private advertising doesn’t make up such a large chunk of my income.

February Expenses – $2318.82

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Here is a breakdown of our expenses for February.

Household

$682.62
Entertainment

$532.76

Transportation

 $169.59

Food

$427.29
Cable/Internet

$65.38
Phone

$100
Electric

$109.85
Health

$231.33

Total

 $2318.82

Expenses were higher in February than in January despite it being a shorter month.  That is mostly from the purchase of train tickets and a hotel room for my hiking trip this month.  A bright spot was the transportation expense which was just $169 this month which was just gas purchases.  This is the first time in a long time that we haven’t had additional transportation expense in addition to gas.  I thought our food cost would go down but it stayed about the same.  I think it might go down this month since I’ll be gone the last two weeks of the month.  Our entertainment expense should go down as well since most of this month’s entertainment was paid for last month.  Everything else should be about the same.  Our expenses still aren’t at the level I’d like but they aren’t too bad so I won’t complain.

Why am I Still Married? What Good is It?

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This is a follow-up to Wednesday’s post, “If You’re Separating…Or Thinking About It.”
The answer is clear, in spite of today’s burgeoning divorce rate. A strong, solid marriage — and I am lucky to have spent 30-plus years with my spouse, the Brick —  is a great joy.

It makes you a better person collectively than you would have been alone. It gives comfort — someone to watch the latest movie together, or commiserate over political foolishness. (Just don’t expect that you’ll always agree…) On cold winter days, someone else is making coffee, or warming up the bed before you crawl in. (if you’re lucky, they’re making both!)

It gives stability. With bills to pay and kids to care for, there are two people, instead of just one, to bring in extra income, make a run to the grocery store, or pick up Junior after school.

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