Financial stuff

I did my taxes last night and I did not like the results. I owe about $1500 on my federal and state income taxes including a $22 penalty on my federal tax for not having enough taxes withheld during the year. I knew I would owe taxes this year but I didn’t think it would be so much.

If you’re self-employed you should pay quarterly taxes. I’ve been able to get away with not doing that until now because my self-employment income was relatively small and my total income was very small so that with credits and deductions I owed very little or got a refund. I thought about paying estimated taxes in 2012 since my online income had increased quite a bit. After the Google hit in spring though I figured my income wouldn’t add up to much and my tax bill wouldn’t be too high. I did claim zero exemptions on the W-2s for my jobs and contributed to a traditional IRA to help reduce my tax bill. That wasn’t enough though and now I’ve got to pay $1500 all at once. It definitely hurts more to make one big payment then to have it taken out gradually over the year. Luckily, I do have a decent paying job so coming up with the money won’t be a problem. I just won’t be able to save any money this month.

This should be a lesson learned that I should pay my taxes quarterly. However, I do expect my online income to be smaller this year and I am having more withheld from my jobs so I once again do not plan on paying estimated taxes. If my online income increases substantially this year then I will reconsider whether I should pay estimated taxes.

I’m almost halfway through with my seasonal tax research job. Working this full-time job plus my part-time job for at least 65 hours a week is starting to be a bit of a grind. Neither of my jobs are too hard and the long hours will only be until April 15 so I can handle it. The blogging has been suffering quite a bit though.

This week I should get some overtime at the full-time job as well. So far out of 30 offered hours of overtime I’ve worked about 1.5 overtime hours. I definitely need to do better on working overtime. Since this is only for 3.5 months I should be working all the hours I can get. Most of the available overtime hours are during the weekend which is when I work my part-time job and I feel too tired to go in and work optional overtime hours after working the part-time job. Considering an overtime hour at my full-time job pays over four times as much as an hour at the part-time job it is possible that the part-time job is costing me money. I do like the part-time job and it is very easy and it isn’t temporary like the full-time job so I’ll keep the part-time job for now.

I did get a bit of a break today. Due to the big snowstorm here in Kansas City the phones were off for the day and we had the option of working from home. Since I live close to work I opted to go into the office. It was nice not having to answer the phones and the work environment was quite a bit different since there was hardly anyone there. I might try the work at home option tomorrow. The system isn’t really set up for working at home, making it a bit of pain to work at home but maybe next year they will configure the system to make working at home an option for any day, not just snow days. I would really like that.

For now, I will just keep working. When I start to feel burnt out I will remind myself it is only for a little while more and think about how much I’ve been able to save. I also have a short hiking trip planned after the end of the tax season to give myself a little reward.

By Tali Wee of Zillow

Competition among landlords is rising as the rental market continues to thrive. The demand for rental units increased again last year, as foreclosed households and new families entered the rental market. The rise in demand caused an increase in the cost of rent, with a national increase of 4.2 percent 2012. Higher prices and demand require landlords to get creative to compete for the type of long-term, responsible tenants they all desire.

Landlords should begin by identifying their ideal tenants, evaluating the common needs of those candidates and focusing their marketing efforts to appeal to that target audience. Consider that responsible tenants generally want dependable, trustworthy and organized landlords. They want to live in clean, safe and well-kept properties. Generally, students need access to the university and library, city workers need to be within close proximity to the city center or public transit and families need dining rooms and great local schools. Landlords should boast about their units’ qualities that align with the desires of their model tenants and include statistics and pictures to back up the statements. All of the unit features and amenities should be advertised with verbiage specifically aimed at their target audience.

Advertisements should be placed in areas within the community where the target audience will likely see the ads. Landlords should take advantage of free online listings on craigslist, HotPads and Zillow. Ads should list unit features, such as the number of bedrooms and baths, but should also detail the unit-specific benefits of a welcoming home such as a beautiful view or tons of natural light.

Landlords should compare their units’ features with local, comparable prices. Some city-centered locations or luxurious units are worth expensive rents, but many renters are looking for a good deal because they are unable to afford a mortgage. Though prices rose nationally, tenants want to get what they are paying for. New carpet and appliances are worth higher prices. Landlords should be fair and competitive with their pricing in order to fill their vacancies quickly with quality tenants.

Renters love concessions regardless of the property’s price-range or locale. To be competitive in the rental market, landlords need to find a way to stand out from nearby availabilities. Here are four concession ideas to stimulate interest in vacant units.

1. Provide Free Internet & Cable Services

The concession of Internet and cable is a huge cost-savings for tenants, especially for single individuals. It’s tough to afford the steep prices of Internet and cable on an average salary when the bill isn’t divided between roommates or multiple incomes. When tenants have to organize all of the craziness of moving, it can be a major relief to avoid the installation scheduling and fees associated with these services. If tenants prefer a more personalized service with a faster connection or DVR then they can certainly set that up separately. Landlords can work this cost into the price of rent while making it come across as a more beneficial deal.

2. Promote Amenities

Another way to stand out from competitors is to promote unique amenities that boost interest in the property. If prices and properties are similar, tenants will likely select the option with additional amenities such as a pool, gym or courtyard with a barbeque. When prospective tenants narrow down their options they are likely to remember an unusual amenity such as a complimentary tanning bed or theater room. These amenities can be expensive to build and maintain for landlords. If the property has several units, then the wide appeal will keep the units full, creating a valuable return on the investment.

3. Supply Transportation Assistance

All tenants need transportation. Landlords can appeal to this need with a range of offers. If the property has several open parking spaces, the landlord can offer a free parking space for the length of the lease or for a few months. Tenants may also appreciate a reduced parking price for areas with competitive parking prices. Another offer is to provide new tenants with a prepaid public transportation pass, or unlimited local transit pass, for the first three months. Some properties with multiple units can offer a shuttle a few times per day from the property to the nearest transit hub and back. Depending on how much money the landlord is willing to spend, any of these options could draw a tenant away from a competitor.

4. Offer Move-In Cost Reductions

The expense to begin a new lease and the costs of moving can be overwhelming for renters. They are often expected to pay the first and last month’s rent in addition to a damage deposit. Landlords who have units to fill can use that initial cost burden to their benefit. They can offer the first month rent-free to relieve a portion of the moving expense and to outshine their competitors. This is generally not the direction that a landlord initially wants to go, but it will certainly draw attention. Another way to eliminate that move-in cost is to not collect a damage deposit. Landlords will still bill the renter for any damages once their lease is up, but the initial costs will be reduced at no expense of the landlords’ income.

Once landlords have reeled in their prospective tenants with these concession offers, they should present themselves and their properties in the best form possible. First impressions make an influential impact. Make sure the lawn is groomed, the building looks updated and the space is clean and organized. Landlords should dress and behave professionally while treating prospective tenants respectfully. If ads are directed at the ideal tenants with fair prices, appealing features and amenities and concessions, and the landlord presents the property with pride then units will be successfully filled.

Statistics collected from Zillow’s fourth quarter Real Estate Market Reports by Chief Economist Stan Humphries.

I have already set my financial goals for 2013. My current financial goals for 2013 are to save 50% of my income and live on minimum wage. I will likely set a couple more financial goals later in the year. If you haven’t set any financial goals for 2013 you should. Studies have shown that making a specific resolution is ten times more likely to be successful compared to just generally wanting to do something. For example, if you set a goal to save $100 a week you are much more likely to be successful than if you just want to save more money, but don’t set a goal.

In order to keep on track with your goals it helps to review them from time to time. You can decide to review your goals on a weekly, monthly, quarterly basis or whatever works for you. This is an area I definitely need to improve on. It can also help to remind yourself of your motivation for your financial goal. One of my goals is to save 50% of my income so I can become financially independent. Reading Your Money or Your Life every year reminds me of why I want to be frugal and save money.

Keeping your goals is also easier if your goals are complementary. Living on minimum wage will keep my expense level low and make it easier for me to save 50% of my income. If you are going to set multiple financial goals you should determine how each goal affects the other and adjust your goals if necessary.

You can enter to win $100 by clicking on the Rafflecopter widget below. Perhaps the $100 could be a jump start for your savings. If you would like to be part of the next giveaway, you can read more about them at the snowflake giveaway page.