Monthly Archives: July 2010

Featured, Money

Should I Worry About The Expiring Bush Tax Cuts

It’s always funny to watch people get jumpy over a fifty-cent coupon on their next pizza purchase and then not worry about the fact that their largest expenses (taxes and healthcare) may change by thousands of dollars one year to the next.

People definitely delight in the occasional saving.  It’s a personal “win” and makes you feel like you beat the system.  However, if your goal is to use your money a little more effectively, it’s worth knowing the impact of political changes so that you can react (and vote) accordingly.

What Are the Bush Tax Cuts

For starters, the tax cuts passed in the early 2000s had a few significant impacts.  Based on 2010 brackets here are the noteworthy numbers versus pre-Bush tax levels.

  • You will save 5% on the first $8375 you make (~$419)
  • Plus 3% on income over $34,000 (another $480 for someone making $50K)
  • Plus $500 per kid (raised child credit from $500 to $1000)
  • Plus 5% on stock gains and 25% on dividends

Remember that your taxable income is far less than your salary.  Just for breathing, the government exempts $3,650 (personal exemption), and because the government knows your a generous giver they assume you have at least $5,700 in deductions (granted if you have more you can deduct that too).  So to be taxed as a $50K earner you would really need to make at least $59,350.

What You Can Do

Nothing. It’s politics. Or stop having kids just to get the child credit (I’ve heard they cost more than $1,000 per year to raise anyway).

No, actually there are some worthwhile moves.  First and foremost, be knowledgeable.  If the tax cuts don’t get extended, you (the average American) will likely bring home $400-800 less in income next year.  For those of you who simply spend the amount of money in your bank account each month, you will be fine but you will end up buying less and continuing your saving achievements of zero.  If you have a budget on the other hand, you may need to make some minor tweaks, but you should be ok.

Second, read the news.  The Democrats basically control the situation right now in D.C.  They want to raise taxes but don’t want to mess with people making under $200K.  If that’s you, then you’ll likely see no changes in taxes (healthcare is another issue).  If you make more than $200K then be afraid, kinda afraid.  Your taxes will likely increase by a few thousand dollars and your inability to lavishly spend, donate, or save like you used to may hurt the economy, but that’s up for debate.

Sigh of Relief

So it looks like the pending doom of slightly higher taxes won’t hit/hurt most of us, yet.  Larger concerns for your immediate finances are healthcare changes, but I’ll save that discussion for next week.  Do be aware that the national debt is swelling quickly and the long term impact is unknown.  Even if taxes don’t go up this year, they will go up eventually.

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Photo Credit (alancleaver_2000)
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Life, Money

Financial Advice for College Freshmen

The Free Money Finance blog recently posted a user’s question on financial Advice for a College Freshman?  While there may be endless tips on the subject, here are four key areas I recommend focusing on.  I know a lot of my readers are out of college, so feel free to add to it in the comments below and I’ll pass them on.

Find a Co-op Job or Internship

Check with your school’s career development or career services office and see what type of help they provide for obtaining a internship or co-op job.  These types of jobs provide two great things.  First, they will provide money towards your college living expenses and savings.  Second, and more importantly, jobs provide work experience that will teach you valuable professional skills and set you apart as a job candidate when you graduate.  Even if the job adds a semester or two to your college life, you are simply extending a great time to develop friends and future connections and better preparing yourself for the future.

Build a Fund to Pay Off the Loan

Assuming you are able to get some type of job, start working on a savings account to pay off that loan.  I recommend an online bank like ING Direct or Ally that offers a decent interest rate and easy access to your account.  Set monthly goals based on your income and save before you spend.  Most college loans start charging interest after you graduate so no need to make payments until then, but if you have built up a savings account during college you will have some momentum into paying that loan off afterwards.  Remember, loans are a constant distraction to developing one’s positive financial future and paying off the loan as soon as possible will help you focus on more important financial questions later in life.

Get Involved

Outside of just accumulating cash to be well prepared for the future, you should invest in yourself and skills as well.  Your ability to succeed often corresponds to the amount of experience you have and the connections you have.  The best way to gain experience working as a team and driving initiatives is by getting involved in clubs in college.  Most colleges have a great variety of clubs to participate in so look for something you enjoy and practice being a leader and making things happen.

Work Hard

Every thing you want to accomplish in life will require some bit of effort.  A great work ethic is what drives you through those hard times when you start to forget why you are doing something.  College offers a great time to develop that work ethic whether it’s in class, in a club, or on the job.  Don’t be afraid to fail and practice developing the endurance that will pay off later in life.

(photo credit SBA73)
Money

Last Chance to Save with Bing Cashback

The shopping side of the Bing search engine is losing its cashback feature in a few days.  Microsoft debuted Bing Shopping back in June 2009 and used the cashback program to drive awareness to the ability to search for product prices within Bing.  The program offers cash when making online purchases that begin with a search on Bing, but has been a cost to Microsoft.  Now that the service is well known, Microsoft has decided to pull the plug on Friday, July 30, 2010.

Lots of Last Minute Deals on Bing

The cashback program typically offers 2-25% cash back on purchases, and some retailers are ramping up the offers to entice last minute Bing cashback shoppers.  To try it out, just search for the next purchase you’re planning to make on Bing.  Also, don’t worry how small or large your cashback amount is as Microsoft has said it will remove its current constraint of at least $5 in savings before sending you the money.  Here are a few great deals this week.

Where To Go Now For Good Deals

Once Bing cashback is gone the big question is where to go instead for savings.  Thankfully there are a number of similar sites out there that are similar.  Although, an actual cashback rewards style program will be hard to find, the deal sites below offer great discussions of the latest deals retailers are offering.  To test a site out just click a link below and search for the product you want to buy.  I tried searching for Macbook Pros on Slickdeals.net and was able to find a local retailer offering $200 off the going price everywhere else.

Will you be missing Bing cashback?  I sure will, but thankfully the internet will provide other great ways to save.

Life

How to Succeed – Lessons from Sim City

haljackey on Flickr

I loved playing Sim City growing up.  The game allows anyone to build the coolest city in the world.  Hate traffic?  No problem, build extra highways instantly. Love sports?  Perfect, a new stadium on every block. In Sim City, you make the rules and in the end your creation happens plus you get rich!  Although it’s just a simulation game, Sim City is a great tutorial on how you can succeed at any endeavor; it just speeds things up a bit.  If you reflect back on what helps people dominate at Sim City – small steps, delegation, and strong standards – you know what it takes to be extremely successful.

One Step At a Time

In Sim City you don’t create a massive metropolis just by wanting it; you take time to build on small successes.  It’s easy to imagine your ideal city, but odds are it never turns out exactly like you originally thought.  Your ability to react to unexpected problems and the needs of your people determines your true success.  Then as you gain more money and power you can start driving closer to your goals, but remember each small win is what brings you to success.

  • Have a plan but don’t over do the details.
  • Focus on solving the current problems and reacting well to unexpected situations.
  • Continuously check if your steps are moving you in the right direction.

Delegate Often

Timothy Ferriss is the current king on life delegation with his book The 4-Hour Workweek.  He outsources nearly every step in his life that he believes is not his to worry about it.  Similarly when you’re building your dream city you set the layout and provide infrastructure and let your Sims figure out the rest.  They decide how the buildings look, what industries to create, and how they live.  You do what only you can do and the Sims do the rest.  All your endeavors should be viewed this way.  There’s plenty of people out there who can help, and the more you can pass on, the more you can focus on what you are truly best at.

  • Outsource work when you can be doing something more important.
  • Take time to train others so that you have more time to do what only you can do.
  • Delegation helps others who need work and frees you up to do better work.

Strong Standards

A strong city builds itself but relies on the infrastructure created by the leader.  In the city this may be appropriate taxes, proper zoning, and efficient means of transportation.  When you delegate out work you are allowing others to succeed and help you succeed, but this will only move in the direction you want it to if you have strong standards for others to build upon.  This may be the most intangible factor to your success, but also the most critical.  Consider your goals, your standards of success, and your ethics and then decide how to communicate them to the people supporting you.

  • What are your goals, standards, and ethics?
  • How do you plan to use them to influence others?

Success is easier than most people imagine.  By focusing on the next step instead of getting lost in huge plans, by passing off all the work that you are not meant to do, and by developing an infrastructure for others to follow you, you can achieve your dreams.  Take some time to figure out what this means for you and start achieving one step at a time.

What’s a goal that you realized was easier than first thought?  Got any games that help put things in perspective?  Let others know in the comments.

Featured, Life, Technology

Where to Find Free Online Music

Ever since the inception of Napster over ten years ago, online and free music has been the pursuit of people everywhere. The rise and fall of various music-sharing sites and complicated legal battles has made the process of gaining unbridled access to all your heart’s content of music a difficult undertaking.  Thankfully, the music industry is slowly warming up to free online music discovery, and below are great places to start when you want to hear your favorite song for free legally.

Free Music Online

There are a number of great sites for hearing free music online, but most limit your access to songs you own or offer random playlists of songs you may like.  One site that rises above the rest in its ability to provide all the music you want is Grooveshark.  The ad supported Grooveshark website offers full access to any song you can think of along with the ability to set up a playlist, skip ahead in songs, and listen to radio stations featuring music you like.  Although you are not able to download music directly to your computer, you should find Grooveshark as a great way to access the music you want for free.

Free Music Discovery

Another type of useful online service is music discovery.  Pandora is the most well know music discovery website and offers music lovers of all types the ability to create a custom radio station.  To start, you just need to submit a song you like and Pandora plays similar music.  Thumbs-up and thumbs-down buttons then allow you to identify to the service what you really enjoy and the service can then better target new music for you to hear.

Mobile Access to Music

While free online music is slowly becoming a reality, the ability to access that music on the go has been significantly limited.  Music discovery services are available though and come as apps on popular phones like the iPhone, Blackberry, and Android phones.  Similar to Pandora, a service called Slacker offers a list of popular music styles to choose from in a radio format.  If you are really desperate for an unlimited catalog on your phone then check out Rhapsody.  While the service will set you back $10/month, you will be able to hear any song you want, whenever you want, and wherever you want.

Any other services you recommend?  Let others know in the comments below.

Find Pandora Radio on AppStoreHQ.
Best iPhone apps at AppStoreHQ

Find Rhapsody on AppStoreHQ.
iPhone apps at AppStoreHQ

Featured, Life, Technology

Program a Comcast DVR Online

I recently received an invitation to start using Comcast’s new online DVR scheduler.  The myDVR manager from Comcast finally provides a service that AT&T U-verse and Tivo users have long held dear, and until now, the missing service had been another problem in the string of complaints about Comcast.  Thankfully, the service is here and next time you’re stuck in a meeting or bank robbery you can be confident that the overdone ESPN episode of an over-glorified NBA player’s free agent signing is available for viewing later.

Getting Started

  • First, you must be a Comcast High-Speed Internet User
  • Have your Comcast.net username and password
  • Have a Comcast DVR (service in your area may or may not be ready)
  • Any internet browser should work but Comcast only lists IE and Firefox

Go to www.fancast.com/mydvr and follow the links to activate your myDVR service.  You’ll be taken through a few pages to sign in and check availability in your area.  Finally, you’ll choose to activate your DVR which may take up to 24 hours.

Using myDVR Online from Comcast

Using the myDVR Manager online is very simple and easy to use, and Comcast will enjoy getting more visitors on their fancast site.  On the site you’ll find a TV guide similar to what you see on your TV.  You can look up shows by channel and time plus filter by popular groups like Movies, Sports, and HD.  Once you find a show you want to record, select it and then click “Record Episode” or “Record Series”.  Next you will find an interface similar to that on your DVR box where options on how often to record and what to keep are available.  The myDVR Manager button (below) is always available and lets you manage the priority of shows and see what upcoming recordings you have.

Mobile Access to myDVR

Best of all, the Comcast myDVR service is available via the Comcast Mobile app on the iPhone and iPad.  The app has a guide similar to the one online where you select the shows you want to record and then “Schedule a Recording”.  The mobile services are essential to making this service great and have been executed well.  I can’t believe I’m thanking Comcast for something, but this is a service I plan to use.  What about you?  Let other readers know in the comments below.

Find Comcast mobile App on AppStoreHQ.
iPhone apps at AppStoreHQ

Featured, Money

ING Direct Unveils New iPhone App

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ING Direct is my favorite online bank.  They offer decent rates with excellent services.  They have been lagging, though, in the mobile banking market until recently when they unveiled a great new iPhone app.  The app provides core services like checking your balance and transferring money, and it only lacks a few small options that would make it nearly perfect.

Getting Started with ING Mobile

The ING iPhone app is a significant improvement over their previous app offering which simply forwarded the user to their online website.  Now ING customers will find a familiar login screen that requires a username, picture verification, a few questions, and a PIN.  Similar to the online website, you can allow the app to save your username and skip to the PIN when you open the app on your iPhone.  This allows for a quick sign on, but may be a security concern on the mobile platform.

ING Direct iPhone App Features

After logging into the app, you’ll be happy to find a simple and clean interface.  Just swipe right or left at the menu on the top to access accounts balances, bill pay options, customer support, and a “Refer a Friend” link.  The bill pay option allows you to send checks to friends when you owe them money making it easy to pay back friends on the spot (similar to Venmo).  One feature I found lacking was the inability to add a friend to your bill pay list via the mobile app.  Only those people who you have added to your online address book are available which is a significant setback to making this iPhone app very useful.  Additionally, the app doesn’t integrate an ATM finder which exists as a standalone app.

Best Features

  • Account balances
  • Bill pay and friend pay
  • Refer a friend for a commission

Enjoyable Experience

All together this app is a great start for ING Direct as they enter the mobile market, and it is helpful to those concerned about their current balance while considering their next big impulse purchase.  Loyal users will enjoy the friendly comments like “Hang On” and “Sorry, we thought you left & signed ya out” that have made the web version an enjoyable experience.  Since ING users tend to like banking online this is a necessary step to maintaining their online reputation, but until options like adding friends to the bill pay address book are available via the phone this app is incomplete.

Are you an ING customer?  Have you tried the iPhone app from ING or other banks and what do you think/expect from mobile banking?  Let me know your thoughts below.

Find ING DIRECT Mobile on AppStoreHQ.
iPhone apps at AppStoreHQ