Simply Junior

Any person has its own wants in life. And the way we handle our finances for the things we want and like can either swallow us to debt or make us financially free of worries. Being financially free of worries doesn’t mean we have to close our eyes and forget the things we want to buy for ourselves. These things are invented and created to be a tool of desire and happiness. And we can have both financial freedom and at the same time capacity to buy things we want, depending on how we handle our finances. Just like a wise businessman, consider all your buys as an investment for yourself or family. Think of it as an asset that will yield a good return to you.

When your money is enough to address the current need of yourself and family does not spend on other things. Instead think of other resources where you can have the opportunity to earn income. The more you think of things you want to buy the greater your effort for revenue generation. After earning the rewards of your extra income you can now buy the things you saw on the store. You are guilt-free and at the same time financially free because you bought the thing from your earnings and not from debt.

Save every penny you can for the whole year and when holiday comes where all shopping malls drop down their prices to almost 90% start your shopping spree. You are actually shopping free because what you spend is from the savings you made last year from the sale of items you bought. When you bought a $150 from the original price of $300 you saved 50%. And originally that $300 you had comes from the savings you had. The remaining $150 from the sale will be your savings again for next year. You’re yearly shopping becomes a free spending literally.

Use the coupons or gift certificates for the items you need to buy as gift for holidays. These are the coupons and gift certificates you had from the points and reward you earn from your frequent shopping for your family’s needs. You do not need to spend the money you allotted for your family’s need or budget. The wise move of using these are a good decision not to spend more than the budget you have. You do not need to borrow cash just to buy gifts. If you really want to make a gift for holidays, save it before the month of holiday or accumulate points as you can to enable you to have a gift free of money spending.

Nowadays spending your money must be carefully watch and plan also. Do not give in to spending more than the capacity of finance you have. Before you spend you plan first on where to get the budget out of it. And when you do had the urge to buy the things you want, an opportunity for finding earnings to back it up is always available. Remember it’s just a want, you can do away without it.

Average Joe Prediction #1: The economy will slump into another recession by the end of 2010. This is double trouble for the Average Joe. You combine a slowing economy with high unemployment, along with the end of tax cuts and you end up with a situation that will squeeze the middle class. To combat this problem, focus your effort on keeping a reserve of cash on hand, as well as current or future sources or ideas of generating extra income quickly.

Average Joe Prediction #2: The stock market will gyrate in wild up and down swings with mostly sideways movement, perhaps ending 2010 at the 8000-8500 level. The 2011 market may trend lower, to perhaps the 6000-6500 level by year end 2011. Media will not admit to continual signs of economic weakness and hope for a return of a bull market. People like “Cramer” on TV will insist the market is oversold and that now is the best time to buy.

For the Average Joe, you may want to consider investments that include financial stocks supported directly or indirectly by the government. These may be the only safe havens that can provide returns. Small and mid-capped stocks might get thrown under the bus since they do not have the strength to combat higher taxes, health care reform and slow markets.

Average Joe Prediction #3: Oil prices will go up, and gas will end 2010 at $3.25 per gallon on average, while 2011 will yield prices at the $4-$5.00 per gallon level. This might seem high, but considering the current BP disaster, the government in conjunction with the oil industry, will start price hikes for a number of reasons. The biggest reason will be to help pass legislation on cap and trade, to pressure the public that alternative energy is the best way to go. The other factor will be the BP disaster, and its inflated effect on the oil markets.

The rug will be pulled out from under the Average Joe in this case, with price hikes taking people by surprise. A good hedge for this problem is to simply conserve fuel by purchasing fuel efficient vehicles. 30 to 40 miles per gallon sub compact cars, as well as car pooling can keep this item in line on your budget.

Average Joe Prediction #4: Possible changes in currency/dollar value. In this case inflation or deflation may be the outcome by 2011. For the Average Joe, you can prepare for this scenario by forming alliances with other people and businesses that like to barter or trade goods and services, rather than paying for them with devalued or overvalued dollars.

Income tax Preparation is a little confusing and complex task because you have to complete your tax return form before the end of filing period to avoid late file penalties. So, you have to prepare your tax return quickly. A step by step guideline is given below for income tax preparation.

• It is better to take some time for the preparation of taxation each year then you will be able to file your tax return in time without any fatigue.

• Spend some time and collect all information about your income which you earned from different sources as a payment for services e.g. your salary, self-employed profits, commissions, fees, social security benefits, income from renting out apartment, pensions and interest from bank for the particular year. Check your books and records carefully to make sure that everything is correct and up-to-date. You need following documents PAN Card Copy, Form 16A, Form 16, Financial Statements, receipts and records for a business or extra income, record of losses or profit, etc. that can be used to get deductions in income tax.

• If you are good in calculation it is best to choose online income tax preparation and tax return filing because it is easy, time saving, cost effective and convenient. A lot of popular tax preparation software are designed with the help of account and taxation experts specially to make the process of tax preparation and filing convenient and hassle free. Make sure that the software you choose supports all aspects of income tax preparation or whatever you need for filing tax return.

• Create an account with a user name, and password on a web site which you select to help you for income tax preparation online. After account creation, the system will show you different forms which you have to fill in. Every step consists of some guidelines which help you what to do from start to end. Always be careful about credibility issues of web site because online filing involves submission of highly sensitive information through a public network. It is better to contact on the numbers mentioned on the site and ensure that nothing is suspicious about the site.

• Enter the information such as names, relationship, date of birth and other required data into the tax preparation software which you have selected carefully. It will help you to lower your tax liability and get additional exemptions for your family. Check your tax return form twice and fill all fields provided there before filing it online.

• If you are assured that your tax return is properly prepared then you can send file to the IRS.
Always keep in mind that the best way for tax preparation is to get ready for it all year long and you should keep your entire document which you need for tax return at a place which is safe and easily accessible. It will keep you relax, composed and organized to report about income, expenditure, savings and income tax to federal and state government.

During a recession or with the credit crunch, many people will need to start sticking to a budget and cut back on their spending. This is the most sensible way to stop yourself getting unnecessarily in debt when you have less money for what ever reason. There are many ways that you can save money without losing all of the enjoyment in your life. There are also many ways to make some extra income to help with the house hold finances.

Saving money and living on a budget, just requires a little though. You can still go on doing the things you enjoy, but perhaps there are ways you can do them slightly cheaper. For example, if you like to go out for a drink on the weekend and usually get a taxi home, is there a cheaper alternative perhaps you could get the bus or share a taxi with a friend. If you love buying clothes and always want to look stylish, why don’t you try looking for second hand designer clothes. They are much better value than new designer clothes and no one will ever know that they are second hand. You can also make money by selling your own second hand clothing that you no longer want or that does not fit you any more. A clothes swapping website will allow you to buy, sell or swap your clothes, refreshing your wardrobe without spending lots of money.

There are so many more ways that you can save money and the details of which will depend on your life style and expenditure. You can save money just by putting in a bit of thought and time and make a few simple changes. The key is that you need to be determined to decide what to do and make those changes. A good starting point would be to make a note of exactly what you spend in a month and then work through each item investigating if you could stop spending this money or find a cheaper alternative. Then think of any opportunities that you may have for making more cash. So if you are worried about finances and how you are going to survive the current economic climate, make some changes now and help put your mind at ease.

Spending money wisely is one of the biggest things we all worry about. We are told not to spend more money than we earn. If you earn $ 2,000 a month you shouldn’t be spending $ 2,500 during that month. But it is easier said than done, we might pass by a shop and start buying things on impulse e.g. shoes (for ladies) and other clothing. Spending money is tricky especially if you want to make every dollar or pound or Euro to work for you. Using money is even harder if you are in another country during your holiday, volunteer/ intern abroad trip, gap year. During this period you won’t be getting extra income and the one you get won’t be able to meet your needs. To avoid calling home to ask for money to be sent to you or using too much of your credit card, money should be spent wisely. Spending money wisely will reduce the credit card debt you will incur when you are abroad. It’s harder saving money while abroad because you don’t know where to get the best deals and the locals see you as a cash cow to be taken advantage of. Here are tips that will help you to save money and make the most of your volunteer/ intern abroad and gap years:

Before you leave

Make the most of your money before you leave, book in advance in order to get the best flight ticket. Buying your airline ticket early allows you to get the best deals to your volunteer/ intern destination. Paying for the ticket in advance allows you to save a few hundred dollars or Euros. Booking for hotels and hostel in advance helps in saving money. As in some you might be able to take advantage of the low rates during the off season. Research for the best deals that are available from the internet. Travel insurance is very important and should be taken seriously. If you are to buy it from a travel agent they will sell you policies which are expensive. Or they will send you to firms which are not at cost. Shop around and look for the most cost effective plan for yourself. That is if you will be travelling once or you will travelling in many times during the year. With different options you will be able to choose wisely which the best is for you.

Bank accounts

Using credit cards overseas is very useful and effective. But there are many hidden costs and charges that they don’t tell you when you are applying for them. First of is the transaction fees they charge are different than what they charge you while you are at home. Then secondly there are currency conversion rates which in some banks are about 2 or 3 %. Use debit cards as opposed to credit cards while you are abroad. This is because credit cards start charging you interest from the time you have withdrawn cash. Due to these costs, when you use the ATMs, withdraw large amounts and do it once in a while. If you are going to stay in the host country for a period of 6 to 12 months it’s advisable to open a local bank account. Opening a local bank account is better as you won’t have to worry about ATM fees, Currency conversion and huge interest rates. After your volunteer / intern abroad program is over, you can withdraw all your cash and change it back to your currency at the banks.

Communication Costs

When you arrive at your host country, buy a cheap local phone which will help you communicate with your friends and family. Due to the advent of the internet we can cut down our communication costs drastically. Facebook makes it easy to send messages either through wall profiles or directly at their inboxes. With this you can save money rather than sending direct text messages or sms. Skype has an extensive network all over the world. With Skype you can make free online calls from Skype to Skype. Using other companies like Yahoo, MSN messenger also provides free calls on their services. These services drastically reduce your communication costs when you want to communicate with friends and family.

Group travelling

You will be able to get group discounts if you travel as a group. You can start saving money as soon as you leave your home country. Some airlines offer group discounts and you will get better rates rather than travelling alone. Also hotels and hostels offer group discounts. Going with a group of friends enables all of you to get more value for your money. Apart from it being more fun it will also be cheaper.

Locals

The natives of the country are a huge resource of information. Although some might use your for cash, there are those who are good and will advice you on the best places where you will get value for your money. They will take you to the cheaper shops, restaurants and hotels. In some case you will be able to save money if you stay with them. The local people as your friends will help you navigate the cities and give you the best budget deals. Use public transport to move around, like buses and trains as opposed to using taxis and chattered cars.

Tourist areas

Tourist areas are known to be the most expensive areas. You should avoid such areas as they will reduce your budget drastically. The prices for everything in these areas are normally inflated. Buying goods and services in these areas is not a good idea as you won’t be able to sustain your stay. Exchanging money at the airports is a bad idea as the exchange rates there are unfavorable to you.