Our Favorite Things-October 28th
Brrrr. It is a cold day here in Sunny Philadelphia. Check out these "hot" stories in the world of money and personal finance.
- IRS changes may trim your tax bill - Cost-of-living adjustments push tax-bracket limits and exemptions up lower your tax bill.
- Workers score big paydays in North Dakota - 6 figure jobs without experience or an education as long as you can handle harsh winters.
- Enjoy luxuries while on a budget - Now you too can live like the rich and famous without going broke.
- Last minute Halloween Costumes - Great DIY last minute Halloween Costumes.
- Saving money using student discounts - Helping students to save big on everything from computers to necessities.
$16 Muffins and What We Can Learn From Them
The Department of Justice spent $4000 for 250 muffins. Doesn’t it seem sort of extravagant when you do the math? They also spent $121 million on conferences in a two year period including $600,000 on event planning. Now our cash strapped country has to pay the piper for such lavish spending. So what can you learn from such wasteful spending? Accountability and fiscal responsibility come to mind.
As we headed into a recession the government kept spending and spending. Soon we found ourselves deeper and deeper in debt. Rather than cutting back or at least try to control spending by purchasing cheaper muffins, getting competitive bids or hiring a full time staff member they continued down a path of irresponsibility. Obviously now drastic measures need to be taken to reduce spending, cutting costs and reducing debt; all this while trying to stimulate our troubled economy. Or they will need to come up with more money, aka raising taxes.
So what exactly does this have to do with you? While it is really quite simple, when times are tough it make sense to cut back on the little things to reduce spending rather than continuing on a path of debt and self-destruction. Things like skipping the mani-pedi, brewing your own coffee, bringing a bagged lunch or working a second job are small sacrifices you could easily do to save money and fund your emergency fund. By having such a fund, if something happens like your car breaks down or your roof leaks you will have the money to repair it. You wouldn’t have to incur debt or make drastic financial decisions.
Obviously there will always be the individual who continues to spend $300 on a pair of shoes so people won’t think they are hurting financially. But the truth is that you can only do that for so long before you get in over your head. At some point it isn’t about brewing your own coffee, it becomes about selling your assets such as your annuity, your car or your home just to survive. No one likes bill collectors and being in debt isn’t a picnic either therefore wouldn’t it make sense to live within your means and create a budget you can stick to?
Rescue Capital has a few tools on their website that can help you to reach your goal of financial responsibility. We are also looking into developing other tools too so if you have any suggestions on new tools or ways we can improve the ones we have just email us at rescuecapital@gmail.com
Will the $1 Coin Replace the $1 Bill?
Recently the U.S. Government Accountability Office (GAO) issued a proposal to the Treasury and Federal Reserve indicating that the US could save approximately $5.5 billion during the next 30 years if they eliminate the $1 bill and used $1 coins instead. According to the agency’s report, dollar bills wear out much faster than coins requiring the government to print new bills.
The report was not the first time the GAO has recommended switching to coins, but its past efforts were hindered because the $1 bills had remained in circulation. The United Kingdom and Canada pulled their bills from circulation to hasten public acceptance when they made their switch to coins.
Of course, there will be some upfront transitioning costs associated with the switch. Private companies, who oppose the switch, said altering their current equipment to accept the proposed $1 coin would be an expense. There was no mention if there would be a new $1 coin but currently many new vending machines accept the current $1 coin in circulation.
Do you think the US should switch to coins? Do you think it will actually happen this time? Share your thoughts below.
How to Pay for Your Divorce
I was reading a blog post this morning from a divorce lawyer about the different ways to pay for a divorce when you don't have the money. One way was to get your spouse to pay, which is quite difficult. Another way was to borrow from family and friends. The third way was a divorce funding service that allows you to borrow money for lawyer’s fees in exchange for a "reasonable" percentage of your divorce settlement. But what about the people who won't be receiving a hefty divorce settlement? What are their options?
If you have an illiquid asset such as an annuity, structured settlement, life insurance policy, royalties, inheritance, pensions, cell tower leases, mortgage notes, lottery payouts or other period payments; you have options. You can sell all or part of your future payments in exchange for a cash lump sum. You can use the money any way you want ??make car payments, pay medical bills, attorney's fees. It's your money, your way.
Depending upon your payment structure you can defer selling your payments for a few years. This allows you get your cash immediately but your periodic payments won't be reduced until later.
If you have any questions about selling your future payments for cash, call Rescue Capital for your free no-obligation quote at 866.688.3532.
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