I agree, to be safe, keep your receipts when you prepare your taxes. There is no hard requirement that you need to furnish receipts to prove that you made a cash contribution that's under $250. But it's certainly a wise thing to ALWAYS keep receipts around, in case of an audit.
After growing up in Michigan, the winters here in Texas are almost balmy most days (seriously, 70 degree days in early January). So most of the year I don't heat my house. I will turn it on (60 when I'm not home or am asleep, 63 when I am. The cats aren't thrilled with the 60, but I leave fleece blankets around and they snuggle with each other and survive).
The harder part for me is going as long as I can without air conditioning. I've made it to Memorial Day weekend the past two years and plan to try again this year, but it all depends on when the wind shifts and the 100 degree days start.
I disagree that you should not donate items that require serious repair. Seamstresses and otherwise experienced sewers can easily fix zippers and other more serious repairs. Plus 50% of what I buy at thrift I buy for fabric to make into something else.
Don't assume that your trash is not in fact someone else's treasure!
A while back I took a chance on a sweater at the thrift store. Name brand, merino wool, said "dry clean only". I liked the color and the fit. And the $1.50 price made it worth the gamble.
I washed it by hand with dishwashing detergent and *poof* new favorite sweater. No problems with not dry cleaning it.
I also picked up an old, army surplus shoulder bag that had seen better days. A good scrubbing (more dishwashing detergent) and it's become a great go-bag on days when I need something other than a backpack.
I need to get back to that thrift store sometime soon.
is really good about ensuring the products aren't ripped, torn or frayed. I actually like shopping there better than regular stores sometimes because I know the product was at least durable enough to withstand one person.
A great book (though somewhat long winded and controversial) on the subject is "The Creature from Jekyll Island" by Edward Griffin.
You are correct the govt does not directly control (or even supposed to influence) the Federal Reserve. Keep in mind about good old Ben today getting re-pointed to his position by who? Plus the fact, the Fed is a govt creation. Until just recently you haven't seen anyone in Congress complaining about the Federal Reserve (cept for Ron Paul since the 80's)
I do not agree theres a government agenda to keep you in debt.
The government certainly does have policies to encourage home ownership. Thats more about 'the American dream' than favoring indebtedness.
Other than that theres nothing sinister going on and all the policies are about stimulating the economy not putting us in debt. Inflation is a natural consequence of a growing economy so with a growing economy there will be some inflation. At least a $1 million of your estate is exempt from estate taxes.
Interesting premise, but then when I reached "A tax credit of $8,000 to buy a home, originally just for first time homebuyers, now is for anyone," you lost me. You're wrong two ways here -- the credit that was extended for move-up buyers (I'm assuming that's what you meant by anyone) is only $6500, and it only applies if you have been in your home for 5 years. It's not like that information is hard to find, so it makes me wonder what other sweeping generalizations/misinformations you've got lumped in here.
We live in the Bay Area where it gets chilly but rarely gets below freezing. Our home was built in the late 70's & has very little insulation. My husband has never paid attention to costs & in years past I would often come home to find the heat set at 80! He of course never listened to my pleas regarding turning the heat down. It has been between 53 & 60 degrees in my home all winter.
In 2009 we both had been unemployed so money has been very tight. We heat with propane which means we must have our propane tank filled in order to have heat & hot water. I informed him in Nov. that I would not be paying for propane so we could not use the furance in order to make the propane we had last longer. It is now the end of January & we have not used the furnace at all this winter. We do have a fireplace which helps to keep the living room warm. I will need to have the tank filled next month but in past years I have had to fill it in late November or early December. We have saved at least $400 on propane. The bigger picture may be that he now sees how much he had been wasting & the need for insulation.
The writer here fails to discuss one important issue. People simply outnumber job opportunities today. Alsh they fail to mention, undocumented workers holding many jobs illegally. This is no longer simply a field worker type job. So as many of us collect this life line of survival, society roday needs to educate itself as you may be one pink slip away form losing your livelihood.
@Nana Sadie - whoa, I'm jealous! Same situation, except I am my landlord & can't afford to put in new windows :-\
I've put up plastic on most of my windows, and this winter, keeping my house at 55 all day has put my bill at $210 for Dec!!
(same as you, hardwood floors, 2 bedrooms, mid-Atlantic)
I'm wondering if part of my problem is that keeping it at 55 has my water heater working harder? My water heater is located on the coldest floor of the house, last year I experimented with raising the temp to 60, but the bottom floor never got above 50... the cold air just leeches in, somehow..
My thoughts on housing exactly. Especially interesting is that there are all these tax reasons promoting buying a home yet homes (at least free standing) are a greater drain on government resources than people living in high rise apartments or in condos. For each new developement you increase bus stops, the area covered by police and fire, infrastructure costs...houses are a drain on the tax base yet we keep telling these people that they get to pay less in taxes.
As for the person who mentioned that not only savers are screwed but so are those in debt by fees, compounding etc...they did not have to go into debt. The vast majority of people in this country and much of the free world are in debt by choice. Sure it can be pointed out that there are extreme examples where peole are in debt due to no fault of their own but these are by far the minority.
We've chosen just one charity to give a larger amount (past years 4-5 causes, but less money each.)
During the Christmas season, I kept the change from any purchases in my coat pocket for the Salvation Army bellringers - they got whatever was in there! (It was also easy not having to fumble around in a purse in the cold!)
I worked as a teaching assistant in a human anatomy lab this past fall - my advice for getting odors out is as follows. :)
Soaking in white vinegar will get out most odors, especially human body odors (I had a little sister who liked to borrow bras and didn't always borrow deodarant - and I'm a 32DD. It's hard enough to find bras that fit, I wasn't about to let them go without a fight.) If you do that first, and then add about a quarter cup of baking soda to your wash water, you're usually golden.
Febreeze laundry odor remover (comes in a blue bottle for extreme odor fighting, lol) is the only thing I've ever found that gets rid of formaldehyde in scrubs - even scrubs that have been soaked in cadaver juice. I used two capfuls to soak overnight, then washed with an additional capful - usually a single wash will do it, but I had one set that required a second. It is really impressive - everyone else I know just pitches scrubs after anatomy is over because the smell is notorious for being impossible to remove. :) It's expensive stuff ($15 a bottle or so) but worth it if you use it rarely - and I save it for the tough jobs.
Absolutely they do. People who are deeply in debt have to go to work, a lot. This takes up a lot of your time, thus discouraging pursuing ideas, starting companies, trying new things in general.
When they make it favorable to go into debt, they know exactly where you will be for the next 10-30yrs, at work, making payments.
I'd like to take this a step further. If any item in your closet has these characteristics (problem zippers, missing buttons, frayed fabric, etc.) don't donate it! Only donate an item that you'd be happy to buy in a store.
We lived without a heater for years, before installing central air/heat, mostly for the air conditioning (which we also didn't have) when my brother married a woman with MS. Summer here in central California lasts about 8 months, about 3 of them really, really hot, so cooling is our main expense.
We still mostly heat with wood in a fireplace insert, which keeps the main room between 65-68, sometimes warmer. But the outer regions of the house stay pretty cool. I prefer beetling around a cool house doing chores, and then going by the fire to warm up when I get too cold. Once we got the central heat, I found that keeping it warm enough for when I'm being still made it far too warm for when I'm busy, which is mostly always.
I read the NYT article, and what struck me most about these people going without heat, was all the people in NY who would prefer not to survive at 15 or 20 degrees and can't afford heat. Frankly, the tone of the piece rubbed me the wrong way, more like some sort of affected puritanical ideal, rather than mere sensible frugality.
While my 401K may delay being taxed, there is an assumption that the tax is deferred to a time when I will be in a lower tax bracket.
I fully expect that to keep the economy going, especially now wiht China as a competing consumer market, the government will eventually have to raise taxes astronomically to pay our debts.
Therefore, I do not sassume it will be a good deal to delay my taxes, as I expect by time I retire- in 25 years- my taxes will be the same, or even higher than, my tax rate now!
But yet, I am squeamish. So half my savings is liquid, half is 401k/403b. Hedging my bets.
When you have an economic system based on "free market capitalism" of course the government will encourage purchasing things with credit and acquiring debt, otherwise the whole system as we know it will collapse.
I understand the frustration of people who "play by the rules" but get seemingly burned. However, if we continue living in the free market capitalist dreamworld, people who do not spend money are always going to get screwed. However, folks who acquire debt are also getting screwed by paying compounded fees and interest. Only those with loads of money to begin with or those who are fortunate enough to continually raise their earnings will succeed.
I think the whole thing needs a revolution and a drastic change. It is best to start and change what you can.
I think frugal living blogs such as this are a great jumping off point for the middle-class to realize a new way to live. Buy locally, reuse, recycle and consider the quality of a product, not just the price. It all starts at home and hopefully, in these small ways, will start to change the world dynamic.
You would go to the top 1% of the US population. Read The Millionaire Mind by Thomas Stanley. More millionaires work hard, save money and pay cash as opposed to using credit cards and using points to get airline vouchers. The proof is in the pudding (sorry for the lame reference).
I agree, to be safe, keep your receipts when you prepare your taxes. There is no hard requirement that you need to furnish receipts to prove that you made a cash contribution that's under $250. But it's certainly a wise thing to ALWAYS keep receipts around, in case of an audit.
SVB @ The Digerati Life
Great stuff...Thanks for these great tips! Come see me for ways to sell these Online.
We're going Green with Home Businesses!
MD
Snack food:
Bread and Butter
Junk food:
Bread, butter and honey or
raw egg beaten with sugar (Ice cream without the ice or cream)
Health food:
Eating so much fruit out of the garden that you can't look at another pear or peach til the following summer.
After growing up in Michigan, the winters here in Texas are almost balmy most days (seriously, 70 degree days in early January). So most of the year I don't heat my house. I will turn it on (60 when I'm not home or am asleep, 63 when I am. The cats aren't thrilled with the 60, but I leave fleece blankets around and they snuggle with each other and survive).
The harder part for me is going as long as I can without air conditioning. I've made it to Memorial Day weekend the past two years and plan to try again this year, but it all depends on when the wind shifts and the 100 degree days start.
I disagree that you should not donate items that require serious repair. Seamstresses and otherwise experienced sewers can easily fix zippers and other more serious repairs. Plus 50% of what I buy at thrift I buy for fabric to make into something else.
Don't assume that your trash is not in fact someone else's treasure!
A while back I took a chance on a sweater at the thrift store. Name brand, merino wool, said "dry clean only". I liked the color and the fit. And the $1.50 price made it worth the gamble.
I washed it by hand with dishwashing detergent and *poof* new favorite sweater. No problems with not dry cleaning it.
I also picked up an old, army surplus shoulder bag that had seen better days. A good scrubbing (more dishwashing detergent) and it's become a great go-bag on days when I need something other than a backpack.
I need to get back to that thrift store sometime soon.
You can also extend the life of a bottle of vitamins by doing this - if the larger vitamins happened to be on sale.
is really good about ensuring the products aren't ripped, torn or frayed. I actually like shopping there better than regular stores sometimes because I know the product was at least durable enough to withstand one person.
A great book (though somewhat long winded and controversial) on the subject is "The Creature from Jekyll Island" by Edward Griffin.
You are correct the govt does not directly control (or even supposed to influence) the Federal Reserve. Keep in mind about good old Ben today getting re-pointed to his position by who? Plus the fact, the Fed is a govt creation. Until just recently you haven't seen anyone in Congress complaining about the Federal Reserve (cept for Ron Paul since the 80's)
dumb.
I do not agree theres a government agenda to keep you in debt.
The government certainly does have policies to encourage home ownership. Thats more about 'the American dream' than favoring indebtedness.
Other than that theres nothing sinister going on and all the policies are about stimulating the economy not putting us in debt. Inflation is a natural consequence of a growing economy so with a growing economy there will be some inflation. At least a $1 million of your estate is exempt from estate taxes.
Interesting premise, but then when I reached "A tax credit of $8,000 to buy a home, originally just for first time homebuyers, now is for anyone," you lost me. You're wrong two ways here -- the credit that was extended for move-up buyers (I'm assuming that's what you meant by anyone) is only $6500, and it only applies if you have been in your home for 5 years. It's not like that information is hard to find, so it makes me wonder what other sweeping generalizations/misinformations you've got lumped in here.
We live in the Bay Area where it gets chilly but rarely gets below freezing. Our home was built in the late 70's & has very little insulation. My husband has never paid attention to costs & in years past I would often come home to find the heat set at 80! He of course never listened to my pleas regarding turning the heat down. It has been between 53 & 60 degrees in my home all winter.
In 2009 we both had been unemployed so money has been very tight. We heat with propane which means we must have our propane tank filled in order to have heat & hot water. I informed him in Nov. that I would not be paying for propane so we could not use the furance in order to make the propane we had last longer. It is now the end of January & we have not used the furnace at all this winter. We do have a fireplace which helps to keep the living room warm. I will need to have the tank filled next month but in past years I have had to fill it in late November or early December. We have saved at least $400 on propane. The bigger picture may be that he now sees how much he had been wasting & the need for insulation.
The writer here fails to discuss one important issue. People simply outnumber job opportunities today. Alsh they fail to mention, undocumented workers holding many jobs illegally. This is no longer simply a field worker type job. So as many of us collect this life line of survival, society roday needs to educate itself as you may be one pink slip away form losing your livelihood.
@Nana Sadie - whoa, I'm jealous! Same situation, except I am my landlord & can't afford to put in new windows :-\
I've put up plastic on most of my windows, and this winter, keeping my house at 55 all day has put my bill at $210 for Dec!!
(same as you, hardwood floors, 2 bedrooms, mid-Atlantic)
I'm wondering if part of my problem is that keeping it at 55 has my water heater working harder? My water heater is located on the coldest floor of the house, last year I experimented with raising the temp to 60, but the bottom floor never got above 50... the cold air just leeches in, somehow..
My thoughts on housing exactly. Especially interesting is that there are all these tax reasons promoting buying a home yet homes (at least free standing) are a greater drain on government resources than people living in high rise apartments or in condos. For each new developement you increase bus stops, the area covered by police and fire, infrastructure costs...houses are a drain on the tax base yet we keep telling these people that they get to pay less in taxes.
As for the person who mentioned that not only savers are screwed but so are those in debt by fees, compounding etc...they did not have to go into debt. The vast majority of people in this country and much of the free world are in debt by choice. Sure it can be pointed out that there are extreme examples where peole are in debt due to no fault of their own but these are by far the minority.
We're giving a little less this year.
We've chosen just one charity to give a larger amount (past years 4-5 causes, but less money each.)
During the Christmas season, I kept the change from any purchases in my coat pocket for the Salvation Army bellringers - they got whatever was in there! (It was also easy not having to fumble around in a purse in the cold!)
I worked as a teaching assistant in a human anatomy lab this past fall - my advice for getting odors out is as follows. :)
Soaking in white vinegar will get out most odors, especially human body odors (I had a little sister who liked to borrow bras and didn't always borrow deodarant - and I'm a 32DD. It's hard enough to find bras that fit, I wasn't about to let them go without a fight.) If you do that first, and then add about a quarter cup of baking soda to your wash water, you're usually golden.
Febreeze laundry odor remover (comes in a blue bottle for extreme odor fighting, lol) is the only thing I've ever found that gets rid of formaldehyde in scrubs - even scrubs that have been soaked in cadaver juice. I used two capfuls to soak overnight, then washed with an additional capful - usually a single wash will do it, but I had one set that required a second. It is really impressive - everyone else I know just pitches scrubs after anatomy is over because the smell is notorious for being impossible to remove. :) It's expensive stuff ($15 a bottle or so) but worth it if you use it rarely - and I save it for the tough jobs.
Absolutely they do. People who are deeply in debt have to go to work, a lot. This takes up a lot of your time, thus discouraging pursuing ideas, starting companies, trying new things in general.
When they make it favorable to go into debt, they know exactly where you will be for the next 10-30yrs, at work, making payments.
I'd like to take this a step further. If any item in your closet has these characteristics (problem zippers, missing buttons, frayed fabric, etc.) don't donate it! Only donate an item that you'd be happy to buy in a store.
Donating trash just wastes the store's resources.
We lived without a heater for years, before installing central air/heat, mostly for the air conditioning (which we also didn't have) when my brother married a woman with MS. Summer here in central California lasts about 8 months, about 3 of them really, really hot, so cooling is our main expense.
We still mostly heat with wood in a fireplace insert, which keeps the main room between 65-68, sometimes warmer. But the outer regions of the house stay pretty cool. I prefer beetling around a cool house doing chores, and then going by the fire to warm up when I get too cold. Once we got the central heat, I found that keeping it warm enough for when I'm being still made it far too warm for when I'm busy, which is mostly always.
I read the NYT article, and what struck me most about these people going without heat, was all the people in NY who would prefer not to survive at 15 or 20 degrees and can't afford heat. Frankly, the tone of the piece rubbed me the wrong way, more like some sort of affected puritanical ideal, rather than mere sensible frugality.
While my 401K may delay being taxed, there is an assumption that the tax is deferred to a time when I will be in a lower tax bracket.
I fully expect that to keep the economy going, especially now wiht China as a competing consumer market, the government will eventually have to raise taxes astronomically to pay our debts.
Therefore, I do not sassume it will be a good deal to delay my taxes, as I expect by time I retire- in 25 years- my taxes will be the same, or even higher than, my tax rate now!
But yet, I am squeamish. So half my savings is liquid, half is 401k/403b. Hedging my bets.
http://en.wikipedia.org/wiki/Federal_Reserve_System
When you have an economic system based on "free market capitalism" of course the government will encourage purchasing things with credit and acquiring debt, otherwise the whole system as we know it will collapse.
I understand the frustration of people who "play by the rules" but get seemingly burned. However, if we continue living in the free market capitalist dreamworld, people who do not spend money are always going to get screwed. However, folks who acquire debt are also getting screwed by paying compounded fees and interest. Only those with loads of money to begin with or those who are fortunate enough to continually raise their earnings will succeed.
I think the whole thing needs a revolution and a drastic change. It is best to start and change what you can.
I think frugal living blogs such as this are a great jumping off point for the middle-class to realize a new way to live. Buy locally, reuse, recycle and consider the quality of a product, not just the price. It all starts at home and hopefully, in these small ways, will start to change the world dynamic.
You would go to the top 1% of the US population. Read The Millionaire Mind by Thomas Stanley. More millionaires work hard, save money and pay cash as opposed to using credit cards and using points to get airline vouchers. The proof is in the pudding (sorry for the lame reference).