Ohana, multi-family living, “boomerang children”. No matter what you call it, extended families living under one roof or on one property can be a cultural norm or a way to cope with the financial difficulties that many are facing. Many say it’s “Easier said than done.” They are correct. There are many issues to work out and compromise is necessary. Stronger personalities and pride will make this even more difficult.

My husband and I are near experts on multi-family living as we lived in the same house as my mother and stepdad for three years. In fact, my husband, dog, business, and I lived in approximately 250 s.f. along with use of the “guest” bathroom and community areas (laundry, kitchen).

During this period of time, we were relieved from the pressure of rent and utilities to help my husband to finish school and for us to pay down some debt. In exchange, my husband and I do a significant amount of the cleaning, food shopping, and cooking on most nights. We managed to create a genuine symbiotic relationship. I really don’t think my family would have ever gotten to know my husband if we hadn’t done this.

Three Tips To Make Living Together Easier

However, it was three long years of discovering and enforcing boundaries, finding additional patience when we were down to our last thread, and learning what real forgiveness means. The following made it easier:

Active Listening

Many times I found that I construed my own experience upon what is being told to me. There were times I felt absolutely unwelcome, when the issue was truly a simple request; there were also times where a small thing was blown out of proportion to the extent that the environment became truly unpleasant. Confirm what you are hearing is correct before you act on it.

Beware the Balance of Power

While my folks deeply enjoyed having us there (so they say, at least) it was difficult to be under a roof that was not our own. We would’ve liked to be in a position to help more, but at least we did contribute our labor if not our dollars. It’s vitally important to never bring up the “help” that is being given in anger, as that can make one side feel like leaches instead of contributors. It’s important to have mutual respect for all households, but also acknowledging everyone’s assistance with gratitude.

Don’t Be Cumbersome

The key to multiple households living under the same roof is recognizing that they are all individual households. They will each make decisions that you don’t agree with; they will work wonderfully together one day, and not so well the next. At one point we finally agreed to the following: “I will treat you every day as if you are a guest in my house, and you will do the same. This way we always know we are looking out for the best interest of the other, we will allow each other privacy, and treat each other with care.” It’s easy to over-invest in a life that is not your own, especially if it is under your own roof, but no one likes to live in a soap opera.

The Concept of the Tiny House

While it overall works very well, there will always be a reduction of privacy. Tricia at Bloggingawaydebt introduced us to the concept of the tiny house, and I swear, there was a shed with a full foundation in our backyard and I thought about knocking it down and creating our own little place. I always felt guilty that my folks were in some ways helping to support us instead of saving for their retirement. Although my mom told us that they would have the mortgage and utility bills regardless of our presence, I wished they were able to slow down sooner. I take comfort in the knowledge that they helped give us a boost now so that we will be better able to help them when they need it in the future.

The benefits far outweighed the negatives for all of us. We had a supportive environment, and we worked together to build our respective businesses. I built a website for my stepdad’s business, and my mom made marketing calls for our wellness business. We took care of each other when we were sick, and there was always someone to pick up the ball if someone drops it.

On a side note, when my folks went on vacation, we realized how little of the house was actually used. If we hadn’t all lived together, about 800 s.f. (out of 1980) would never get used. How wasteful!

Tags

boomerang, symbiotic relationship, personalities, boundaries, forgiveness, balance of power, patience, financial difficulties, compromise, community areas

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This post was written by A.B. (Staff Writer)

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Copyright © 2007 – 2009 Pinyo B. This feed is provided for the convenience of Moolanomy’s subscribers. You are not allowed to reproduce the content within this feed in any manner.

Please visit Moolanomy Personal Finance Blog, Moolanomy Finance Directory, and Moolanomy Answers for more great content.

Source: Moolanomy Personal Finance

Economies develop and move forward under almost any conditions. Mankind can adapt, survive and even make a living in the totalitarian economies of Chavez and Castro to the laissez-faire, free market economies of Canada and Hong Kong. In a manner of speaking, free market is alive and well wherever people live. Sometimes it is a black market or a non-currency market — markets exist in prison for that matter. The point is, if the rules stay constant, people are creative enough to make a profit or at least survive.

The one factor that restricts a market the most is uncertainty.

Photo by artemuestra via Flickr

News came out last week that President Obama is proposing new rules for banks. The rules are a combination of taxes, fees, limits, and accountability.   Many of the rules and regulations make sense, we do need more oversight and law enforcement in some areas of the market – provided that the government does not meddle in that market. Fortunately, all of the new regulations must be approved by Congress before being put into practice, which is a good thing, even though congressional approval certainly adds another level of uncertainty to the future.

The issue is that the administration seems to come out with new statements on banking or business every week. Obama’s administrative policy proposals resulted in a huge sell-off of the big banks last Friday and these stocks are recovering slowly at best. Yesterday, the administration proposed requiring small businesses to set up IRA’s for employees. Tomorrow we could get news that key members of Congress have pledge to resist the new legislation and we will see a bull market making volatility the only constant in the market.

From the CNBC article:

“It’s politically expedient to vilify these institutions, but that doesn’t mean it’s the right thing to do,” said Walter Todd, portfolio manager at Greenwood Capital Associates in South Carolina.”They’re trying to win back political points after losing the Massachusetts election. Obama comes out with something different every day for financial reform. It creates a very uncertain environment for these companies,” he said.

Think about it, what if your job paid you a different salary every week without notice? What if the tax law regarding your salary was adjusted every month — sometimes your employer paid his half of social security, sometimes you pay it all. What if self-employed contractors had no idea what their tax rate would be in any given year? How do they decide what to pay employees or how many to hire?

Uncertainty was a major problem for investors and entrepreneurs during the Great Depression. Our government was constantly tinkering and moving the goal line, but investing, wealth building and planning for the future is based on assumptions about where that goal line is placed. When the benchmarks are certain and constant, there is no guarantee of a return. Your assumptions can turn out to be right, sometimes they turn out to be wrong. Everyone understands there is risk in a stable market.

However, when our government is constantly changing the variables, there is no way to even construct assumptions. You might as well place a list of stocks on the wall and throw darts at them. You will have a better chance at profitability that way — or you can throw all your money toward political lobbyists . . . yikes!

When the government changes regulations on various industries and companies on a regular basis, they are creating uncertainty that does not benefit investors. If Washington D.C. is picking winners and losers, there is no way that the rest of us can be expected to do it.

Tags: new legislation, free market economies, massachusetts election, volatility, administrative policy, policy proposals, uncertainty, accountability

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This post was written by Joshua Caucutt (Staff Writer)

Do you have a financial question? Ask it now at Moolanomy Answers!

Copyright © 2007 – 2009 Pinyo B. This feed is provided for the convenience of Moolanomy’s subscribers. You are not allowed to reproduce the content within this feed in any manner.

Please visit Moolanomy Personal Finance Blog, Moolanomy Finance Directory, and Moolanomy Answers for more great content.

Source: Moolanomy Personal Finance

No matter the industry, providers of products and services are always saying something to the effect of: “You are blind as to who is going to walk in the front door for their first meeting with you. As you work with the client a bit you have a greater collection of knowledge but still not the whole picture. It can still take 10 years or more to really know who you are dealing with”. Do you truly know the life and financial motivations of your clients? Their deepest desires? Do you know their risk tolerance? Do you know what types of products and services they want?

Source: Financial DNA – Discovering Your Unique Financial Personality for a Quality Life!

The other day a friend called and asked me for some advice on personal finance. I was pretty flattered because it has only been a year since I first began reading and studying personal finance. In only one year I have already seen the positive effects that studying personal finance has had on my life. Looking back, I realize that what was most beneficial to me was automating my payments, measuring my current expenses, and cutting back on large expenses.

This post is about how I was able to cut back on eyewear, which had been a large expense for me.

Normally my vision insurance covers my purchase of glasses, but this year I broke my glasses and when I went to the store I was told that I wouldn’t be covered by my insurance. When I was told the glasses would cost me over $250, I didn’t know what to do. As I am in school, I am sure you can understand that I did not have that type of money to spend.

After looking at less expensive glasses, which were not much lower in price, I decided to look online for help.  When I looked online I found out that I could have bought the exact same pair of eyeglasses online that I had been looking at for less than half the price. I read online that a frame that costs less than $25 to make in Europe can retail for at least $150 in the United States.

As I continued to look online, I found the answers to all of the questions I had about purchasing eyewear online. For one, all I needed in order to buy glasses online was a prescription and a PD measurement from my eye doctor. Also, if I needed to have my frames adjusted, I could just go to a local optical shop and they would do it for a very small fee.

I decided to purchase a pair of glasses online and I couldn’t be happier with how they turned out. Now I also purchase contacts and sunglasses online. I am able to save $10 for every contact box I buy online.

You can purchase sunglasses online too. It is kind of silly for me to watch people purchase sunglasses at retail stores now because I realize how much they are overpaying for sunglasses.

Purchasing eyewear online not only lowered my costs, but it also saved me a lot of time. If you are looking to cut your large expenses this year, seriously consider looking at shopping online for your eyewear. If you want to know where to start, here are some popular websites to purchase glasses:

• Eyeglasses.com — Website that sells glasses; received an A+ rating from the Better Business Bureau (BBB)
• EyeBuyDirect.com — Popular website for glasses

Here are some websites to look for sunglasses:

• FramesDirect.com — Large sunglasses website online
• Zappos.com — They now sell sunglasses!

Lastly, here are some popular websites to purchase contacts:

• 1800contacts.com — Very well known website; you can see some their commercials on television.
• Lens.com — Another popular website

Tags: vision insurance, Insurance, retail stores, glasses, eyeglasses, sunglasses, eye doctor, eyewear, optical shop

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This post was written by Terry Cutter

Do you have a financial question? Ask it now at Moolanomy Answers!

Copyright © 2007 – 2009 Pinyo B. This feed is provided for the convenience of Moolanomy’s subscribers. You are not allowed to reproduce the content within this feed in any manner.

Please visit Moolanomy Personal Finance Blog, Moolanomy Finance Directory, and Moolanomy Answers for more great content.

Source: Moolanomy Personal Finance

On January 18^th of this year, I finally decided I was ready to make some New Year’s resolutions. I’ve never really done the resolution thing in the past, and so I wasn’t compelled to do it come December 31 or January 1. But I recognize that goals are good — and so I came up with some. If you’re already frustrated with your original resolutions, or are still looking to make some, read on.

Resolution or a Goal?

Unlike some people, I don’t really see resolutions and goals as being the same thing. To me, a goal is what you want to achieve, while a resolution is how you plan to do it. After all, you can resolve to get out of credit card debt — but if you don’t stop using credit cards and increase your payments, it probably won’t happen. Instead, your goal should be to reduce credit card debt by X dollars. Matching resolutions could be to stop using credit cards and increase your payments by 20% (or $100/month, or whatever you can afford).

Make Resolutions to Meet your Goals

You should set both resolutions and goals that are attainable without being too easy — you want to stretch yourself to really see results. At the same time, overreaching often leads to failure, so be realistic. You will know you were successful at meeting your resolutions if you reach your goal. Make sure both are quantifiable so that you can truly measure success — “lose weight” is not a quantifiable goal, while “lose 10 lbs is.” “Decrease my student loan balance” is not. “Make more money” is not quantifiable, but “bring in $250 per month” is. Here are some examples of measurable goals and related resolutions:

Goal: Contribute additional $250/month to savings or debt payments

Resolutions:

• Decrease coffee purchases from 5x/week to 2x/week
• Sell at least $25 worth of items on Craigslist or Ebay each month
• Divert $50 each month from restaurant spending to student loan payments
• Contribute $10/week to Roth IRA
• Bring lunch at least 4 days/wk

Goal: Lose 10 lbs

Resolutions:

• Drink 64 oz of water each day
• Drink no soda
• Attend 2 exercise classes each week
• Run at least 3 miles on the treadmill at least 3 times per week

Stick to your Resolutions – Just for Today

Some people give up on their resolutions easily while others choose not to make resolutions at all. This is usually because they are overwhelmed by the thought of keeping the resolution week in and week out for the rest of the year. I found this Dear Abby post recently that has been helping me accomplish my resolutions. It’s based on the Al-Anon credo, and centers around telling yourself that you can accomplish anything, if “just for today.”

So just for today, cook dinner at home. Contribute $10 to savings, or send $20 towards your smallest or highest-interest debt. Just for today, decide to succeed and stick to your resolutions. A string of one-day successes turns into a week, then a month, then a year — but taken one by one, each day is manageable.

If you have already given up on your resolutions, or never got around to creating any, consider coming up with a new list now. Tell us in the comments what you plan to do — if only just for today!

Tags: resolutions, student loan payments, success, failure, measurable goals, new year, goals, debt payments, using credit cards

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This post was written by Jill (Staff Writer)

Do you have a financial question? Ask it now at Moolanomy Answers!

Copyright © 2007 – 2009 Pinyo B. This feed is provided for the convenience of Moolanomy’s subscribers. You are not allowed to reproduce the content within this feed in any manner.

Please visit Moolanomy Personal Finance Blog, Moolanomy Finance Directory, and Moolanomy Answers for more great content.

Source: Moolanomy Personal Finance

The tax man cometh… Tax season is well underway. I know, I’ve already called my tax professional to set up a time for me to come in and have a little chat about how things are going, taxwise. And, of course, to fill out my tax return. For many, this time of year also means increased worries about the possibility of an audit. While random chance plays its role in tax audits (sometimes there is just no way to avoid some sort of an audit — no matter what you do), there are some red flags that may prompt a closer review of your paperwork.

Photo by blmurch via Flickr

Here are some tips for avoiding a tax audit:

Make less than $100,000 a year

Because people making more than $100,000 a year account for more than 60% of the taxes paid in this country, the IRS is very interested in looking for tax avoiders in this category. As a result, if you make six figures, you are automatically in the running for a tax audit. Of course, the risk of being audited is no reason to avoid making more money; you just need to be careful about your documentation so that you are properly prepared in the event of a tax audit.

Don’t go overboard with itemized deductions

Itemized deductions can be quite helpful in lowering your taxable income and saving you some money. However, it is important not to go overboard. Manny Davis at Back Taxes Help points out that the average total deductions vary according to income. He points out that for those making between $30,000 and $50,000 in gross income each year, the average total of itemized deductions is right around $20,000. For those making between $50,000 and $100,000, the total was around $24,600; and for those making between $100k and $200K, the total amount of deductions is $36,500. If your itemized deductions exceed these amounts, you might be flagged. Keep records of your deductions, including receipts for charitable donations.

Be careful about home office deductions

You can take home office deductions when you telecommute or have a home business. However, it is important to be scrupulous about the sorts of expenses you count, since anything you use for something other than business won’t be allowed. Home office deductions, especially if they are large and numerous, may raise red flags, although just taking them no longer marks you out, since technology has given rise to millions of home businesses and telecommuters.

Don’t fill out your tax return by hand

I’m guilty of this. For years, before I began going to an accountant, I filled out my tax return by hand. I even added in business expenses for what was then a sole proprietorship. Apparently, I should feel very lucky that I wasn’t audited. Tax returns filled out by hand raise red flags about accuracy, and can cause legibility problems. You don’t have to go to the accountant to avoid a handwritten return, though. The IRS has forms you can fill out online, and you can use software that fills out your tax return.

Make sure all income is reported in the proper places

When I first switched to an Limited Liability Company (LLC), my accountant had all sorts of trouble with this. Some of my clients didn’t get the memo that I had a new tax identification number. As a result, all of the income on 1099 forms that showed my Social Security Number still had to be reported on the Schedule C, rather than with the income under my Employer Identification Number.

The IRS matches up what others report on your income with how much your report, so you want to double check to make sure that everything is in the right place. This goes for your spouse’s income (if necessary), income from hobbies and other types of income. And, if you know that you will be receiving a corrected W-2 or a 1099, wait until that comes in before completing your return.

Making sure that your tax return is filled out properly is your responsibility, as is making sure you have all of the proper documentation to back up your claims. While there is no full-proof way to avoid a tax audit, you can significantly reduce your chances of being red-flagged if you are careful about how your tax return is completed, from reporting your income to claiming investment losses.

Tags: Accounting, back taxes, red flags, tax audit, 100k, IRS, gross income, Income Tax, avoid tax audit, random chance

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This post was written by Miranda Marquit (Staff Writer)

Do you have a financial question? Ask it now at Moolanomy Answers!

Copyright © 2007 – 2009 Pinyo B. This feed is provided for the convenience of Moolanomy’s subscribers. You are not allowed to reproduce the content within this feed in any manner.

Please visit Moolanomy Personal Finance Blog, Moolanomy Finance Directory, and Moolanomy Answers for more great content.

Source: Moolanomy Personal Finance

Home equity line of credit rate is a credit facility where you secure repayment of your loan by your equity on your house. This is advantageous for those you who have realized or is about to realize the greatest American dream, ownership of their own dwelling. Various reasons lead consumers into taking advantage of using their dwelling as collateral such as in a home equity line of credit.

Primarily is the fact that as compared to other loans including, credit cards and other unsecured credit, home equity line of credit rate is lower. Additionally, the interest paid in a home equity line of credit is tax deductible. Thus, it helps trim down the tax payables. Another factor for the popularity of home equity line of credit on top of the home equity line of credit rate, which is lower, is the fact that you can take out a loan of up to 85% of your total equity on the house.

This is especially important for repairs and renovation necessary to make the house safe and conducive to living. Additionally, consumers prefer to take out a loan against their equity for purposes of children’s education and in some cases, to settle medical bills. Consolidation of debt is also another advantage of taking out a loan using the house as collateral.

This is because of the convenience that you only owe one institution with all your previous and prevailing loans, the home equity line of credit rate is specifically helpful in this case. You consolidate your debt and you minimize the interest rates payable, on top of the fact that interests are tax deductible. Consumers take advantage of the convenience and flexibility including the lower home equity line of credit rate, however, it should not be forgotten that using your house as collateral entails some risks.

Primarily, you are at risk of loosing your dwelling. If it happens to be your primary dwelling, consider the nightmare of eviction. Financial experts therefore recommend that if you want to take advantage of home equity line of credit and the reasonable home equity line of credit rate, you may need to do your homework. Search for the most reasonable interest rates, because interests in a home equity line of credit may be variable, you may need to find the lowest interest rate and the most flexible payment terms.

If possible, avoid the lure of paying interests only on your credit line; this will avoid being trapped by the balloon payment at the end of the term. If possible, choose to pay the interest and part of the principal on a regular basis. You may also need to check with the lending institution what are the conditions that will make them consider you as in default and what conditions you may need to follow to avoid balloon payments, which you may not be ready for.

It is thus recommended that you scrutinize the application a bit and ask all the pertaining questions in order for you to make sure that you dwelling will not be at risk in the transaction. The internet may be a good place to start even before you contact an agent. It may also be helpful if you can find other sources of information to guide you with the intelligent decision of acquiring loan against your dwelling even with the consideration of home equity line of credit rate.

Source: Personal loan Information : Auto loan, Home loan, Internet bank, Mortgage

Whether planning a vacation, a business trip or a getaway to see family, traveling is a very expensive, yet important part of life. In this article, I’ll share some ideas to help you find ways to save money when booking a flight, hotel, and rental car to make your experience less stressful and lighter on your wallet.

Airfare

There are many websites designed to help you find the “cheapest fare”. Some of them are good at this while others are not. I have been to many of these sites and after much research, I recommend checking out these 4 sites:

• www.expedia.com,
• www.kayak.com,
• www.wego.com, and
• www.vayama.com (for international flights)

For me, these sites seem to consistently have the best deals. For the most part, they get their quotes from the same place but may have a special fare on some airlines so be sure to check them all without relying on just one.

What is more important than the actual site is how you use the site as a tool to comparison shop. When searching for a plane ticket, start at these sites. Assuming your trip is more than one month away, check these sites daily for at least one week to get a feel for whether prices are rising or falling. Write down the names of the airlines offering the cheapest 5 fares from each site.

From there, go directly to the airline websites and see if their own price beats the offering on the comparison site. The airline will generally have a better deal than your comparison site is offering. Why? These sites get paid a commission by the airline for flights they book. If you book directly on the airlines website, they pay no such commission and can therefore offer you a cheaper rate.

Once you have your cheapest rate, call your local travel agent. Share the deal you have with them and ask them if they can beat it. If yes, book with the agent. If not, book your fare online.

Hotel

Shopping for a hotel room will work in much the same way as shopping for airfare. You should check the comparison sites, then call the actual hotel directly, then your travel agent.

Assuming the actual hotel offers the best rate, call them back and try to negotiate even further by asking for an even cheaper rate. If that is not possible, ask for a free night, spa or entertainment credit, or even complimentary mini-bar or dining. You might be able to squeeze the hotel for one or more of these perks.

Once you have completed your stay and are checking out, thank the front desk for a pleasant stay and ask them once more for a discount to intrigue you to return. This may seem to border on desperate but if that doesn’t bother you, it might just work.

Car Rental

When pricing a car rental, apply the same rules listed above for airfare and hotels. Unless your co-travelers and/or luggage will not fit, always order the cheapest car available. Unless you’re travelling on busy travel dates, this will allow you the opportunity to ask for a free upgrade when you arrive to pick up your car. I have done this myself and have many family and friends who have been successful in this as well.

Most travel websites market themselves as a one-stop shop for you booking needs. Although they have all of the offerings, you may not necessarily be offered the best deal you can find in one or all of the categories. It always pays to check these sites first but make sure to follow the guidelines above and comparison shop for the best deals.

Tags: rental car, comparison shop, best deals, ways to save money, getaway, shopping, hotel room, travel agent, airline websites

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This post was written by Josh (Staff Writer)

Do you have a financial question? Ask it now at Moolanomy Answers!

Copyright © 2007 – 2009 Pinyo B. This feed is provided for the convenience of Moolanomy’s subscribers. You are not allowed to reproduce the content within this feed in any manner.

Please visit Moolanomy Personal Finance Blog, Moolanomy Finance Directory, and Moolanomy Answers for more great content.

Source: Moolanomy Personal Finance

In recent weeks we have strongly focused our messaging around “business transformation”. In particular, the need to address the client experience that is being provided in order to transform. So often, leaders regularly talk about getting the right people on board, developing the team and the leadership, having the right product, focusing the business plan, improving execution etc. These are all important dimensions; however, they are not all of it.

Source: Financial DNA – Discovering Your Unique Financial Personality for a Quality Life!

When you hear the term “Security Finance” you might think about collateral. When you go to the bank to secure a loan for a new car or a home, the bank will look at what you already own and they often refer to that as “security”. In days past, that was the definition most recognized with the term, but today it means something a bit different.

Security finance can fit into two categories:

• Debts
• Equities

When considering security finance as it relates to debt the term is often used in reference to things like bonds. Bonds are generally issued to one person by another person who owes them money. Some common types of bonds are the bonds issued by the government. In this type of security finance, the bond is taken out for a specific time with an agreement that once that time has elapsed, the bondholder will be entitled to the face value of the bond along with interest at a pre-determined rate. These types of bonds were extremely popular years ago when people would buy government bonds as a savings technique.

The interest payable is low though and although they do garner a profit, it’s generally modest. The Best Finance Tips are those that help the consumer yield the biggest profit with the least risk. Another type of bond that people think of when they consider security finance is Eurobonds. Eurobonds sound exotic but in essence they are bonds from another country.

The investor places money into a bond in a foreign country. In terms of security finance when you are referring to equity that generally means shares or stock in a company. Stock is the money raised by a company through the sale of company shares. With many popular companies going public and giving anyone the opportunity to purchase shares, it’s not uncommon for a person to hold shares in several well-known corporations. Security finance in this sense is thrilling to the average worker who purchases a share and then follows the stock market carefully wanting to see how his investment is doing.

Many people see this as a beneficial addition to their financial portfolio. Having some understanding of the Best Finance Tips is essential though if you hope to make a profit by investing in shares. A share can hold a modest value one day and then shoot up substantially the next. For many investors this would be the time to sell to see that immediate profit, but those schooled in security finance understand that the stock market can be unpredictable. There are trends in the stock market and if you have an understanding of security finance you’ll know that following the market is crucial to success.

The critical components to success are what to purchase and when to purchase it. Recognizing the Best Finance Tips and following them will help you with knowing how to read the stock market. Security finance is an exciting area for even the modest investor. Regardless if you have five dollars or a million dollars to invest you can make a profit if you keep a level head. Getting the knowledge you need is as easy as taking time to research the area you are interested in.

Source: Personal loan Information : Auto loan, Home loan, Internet bank, Mortgage