10 Ways to Save More Water

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

Water is a precious resource. Of course, I’ve always known this, but when I lived in the Midwest where water and rain are both abundant, I didn’t think much about it.

Last year, we moved to the middle of the desert in Tucson, Arizona, and my feelings about water have changed dramatically. Water here is literally liquid gold.

While the drought rages on in California, the news in Tucson is constantly about how we’ll be affected since California and much of Arizona share the same water supply—the Colorado River—which is shrinking rapidly.

However, Tucson is very good at finding ways to save water. Here are just some of the ways we’ve learned and are now utilizing to do our part in the water conservation battle:

1. Pick landscaping that is not water dependent

Our home, and almost all of the homes around us, have colorful stones on the yard instead of grass. Some people stop landscaping there (which is quite a boring look, I must say), but many others plant native cacti or trees that require very little water.   I have seen only a handful of homes with grass, and by midsummer, after weeks and weeks of no rain and 100+ degree temperatures, the grass turns brown and patchy.

By planting landscaping that is not rain dependent, you’ll save a significant amount of water. According to Realty Times, “Water-efficient landscapes can help you save almost 10,000 gallons of water per year.”

2. Catch rain water

When we get rain here, which isn’t often, we usually get a quick deluge. My husband and I set out all of the empty buckets we have to catch the water and use it later in our garden or on our lawn vegetation. (You may not want to do this if you have very young children due to the risk of drowning.) If you wanted to carry this further, you can install a rain barrel that will hold more of the rainwater for a longer period of time.

We also put a bucket under the drip spout for our air conditioning condensation. During hot summer days, that bucket fills up twice a day and can be used on outdoor vegetation.

3. Conserve what would be wasted water indoors

The average family wastes a lot of water without thinking about it. If you have vegetables to rinse, for instance, you likely leave the water running while you scrub. All that precious water goes down the drain. The same is true when you turn on the water in the shower and let it run while it warms up to the appropriate temperature.

A simple change can save all that water. Some people have a clean 5 gallon bucket in the shower. They have the water spray into it until it is the right temperature. Then the water can be reused. When we wash vegetables, we now do so in a bowl full of water so later we can use the water to water our vegetation.

4. Turn off the water when you brush your teeth

Before I moved to Tucson, I was guilty of letting the water run while I brushed my teeth. What a waste! If you brush your teeth for the recommended two minutes, that’s over 8 gallons going straight down the drain. To put it in perspective, EPA Water Sense Kids states, “Just by turning off the tap while you brush your teeth in the morning and before bedtime, you can save up to 8 gallons of water! That adds up to more than 200 gallons a month, enough for a huge fish tank that holds 6 small sharks!” And that is just for one person. If you have more people in your household, imagine how much you are saving!

5. Turn off the water when you soap up and shampoo in the shower

My uncle, who served on a submarine, called these Navy showers. You rinse yourself completely, then turn off the water while you soap up and shampoo. Turn the water back on to rinse off completely. According to Tree Hugger, “A typical shower takes as much as 60 US gallons of water, while taking a navy shower can use as little as 3 US gallons; one person can save 15,000 US gallons per year!”

6. Take a five minute shower

If turning off the shower while soaping up doesn’t feel like a true shower or isn’t relaxing enough, try the five minute shower. Since most people shower for 10 minutes, the savings can be significant. Consider, “the average 5-minute shower takes 15-25 gallons of water—around 40 gallons are used in 10 minutes” (Glen Canyon Institute).

7. Install a low flow toilet

If you have a regular toilet, you may want to replace it with a low flow toilet. According to Bell Home Solutions, “If you have a slightly newer toilet from after 1980, it could use as much as 3.5 gallons per flush. You will save between 11,000 and 35,000 gallons of water per year just by upgrading your toilet. That’s a savings of between 55% and 77% of your water consumption from one simple upgrade.”

An even more efficient option is a dual flush toilet. These toilets use half the amount of water when flushing liquid waste and the regular amount when flushing solids. We have a dual flush toilet in our home and have found that the option that uses half the amount of water is sufficient in almost all cases. A manufacturer of dual flush toilets, Caroma, “estimates that you can reduce your toilet’s annual water usage by 80%. The average American uses more than 18 gallons of water for toilet flushing. With an 80% reduction, this amount is reduced to about 3.5 gallons, saving about 15 gallons per day, a dramatic decrease in water use and improvement in efficiency” (North Carolina Museum of Natural Sciences).

8. Run your dishwasher only when it’s full

If you wait until you’ve saved every space in your dishwasher, you could save yourself 1000 gallons a month (Squeeze Every Drop). If you’re single, you may have to wait a few days before running your dishwasher.

9. Wash towels every other use

If you have a family, you could run loads of towels several times a week if you wash them after every use. We’re a family of 5, and once the heat climbs above 100 degrees, we all take showers every day. However, I only wash our towels after every other use. That saves us half the amount of towel loads we would normally use.

10. Wash clothes on an as-needed basis

We don’t automatically wash our clothes every single day. My girls are 5 and 6 and don’t yet have body odor issues as adults do. If we have a low key day where we stay home, and their clothes are still clean at the end of the day, I have them wear them again the next day. This doesn’t always happen, but I’m guessing I reduce our laundry by about 1/3 by using this strategy.

Saving water just requires some simple changes. If you do so, not only will you help conserve water, but you will significantly reduce your water bill. How much depends on the rate your town charges, but remember, water rates are usually based on levels, so the more you use, the higher the average rate you have to pay.

How about you all? What strategies do you use to reduce your water consumption? How often do you wash your towels and clothing?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/zaheerm/5392447566/

Buying A Car With Cash

The following post is by MPFJ staff writer Travis, who blogs at Enemy of Debt where he candidly shares his family’s financial struggles, failures and successes. As a father and husband, he provides a unique perspective on balancing debt, finances, and family.

My son recently started his first part-time job at a grocery store. We told him that he could have this first two paychecks to buy whatever he wanted, after that we would talk about   how much of each paycheck he would save towards his own car as him using one of ours is inconvenient at times.

I want him to have the right perspective when it comes to buying a car, so he’ll be required to have cash in hand to purchase his first car. I also wanted to set his expectations correctly as to what kind of car he would be able to purchase, so we sat down together and ran some numbers.

He’s currently working about 20 hours a week, or 40 hours a pay period. Making $9.75 an hour, after taxes his paychecks are about $330. We agreed that he would save half his paycheck. Thus each paycheck will inject $165 into his savings account or $330 per month.

We discussed when he thought he would like to buy his own car, and together we targed September of 2016, which is the beginning of his senior year of high school. Saving $330 a month for 15 months would give him $4950 to go car shopping.

I knew exactly what question he would be asking next; What kind of car could he buy for about $5000? I searched some of the car dealerships in my area, and found some cars available that he could theoretically afford:

• 2003 Silver Ford Focus with 124K Miles
• 2005 White Pontiac G6 with 167K Miles
• 2007 Blue Kia Electra with 87K Miles
• 2008 Silver Chevy Cobalt with 191K Miles
• 2005 Maroon Pontiac Grand Am with 95K Miles

Next, I wanted to show him what kind of car he could buy if he upped his savings just $50 a paycheck, or $100 a month. By doing so, he would raise his car budget to $6450 and significantly upgrade the type of vehicle he could afford. Here are some examples I found that fit within the recalculated budget:

• 2007 Metalic Honda Civic 167K Miles
• 2008 Silver Chevy Impala with 132K Miles
• 2007 Black Ford Fusion with 128K Miles
• 2005 Black Volkswagon Jetta with 134K Miles
• 2009 Yellow Pontiac G3 with 102K Miles

The hardest thing about paying cash for a car is finding a way to save up enough to pay cash for a vehicle. For my son it’s fairly easy because he doesn’t have many expenses, and he can just use one of our vehicles until he can afford his own. But for the rest of us it’s difficult to save a significant amount of money each month in addition to all the other financial commitments of every day life. But by following a few steps, it can be done.

Dump The Car Payment

If you currently have a car payment, consider selling the car if you can get at least as much as you owe on it. By getting rid of the car payment, you instantly have extra income to save.

Buy A Car

If there are proceeds from selling your existing car, buy one using only that cash. A friend of mine did exactly that, driving the completely paid for car as they saved up to buy a new vehicle with the time was right.

Buy a Clunker

Another friend of mine bought a $300 car that he drove around for 4 years before it finally died on him. It gives you transportation, and doesn’t cost a lot. If it requires major repair, junk it and find another.

Utilize Public Transportation

I was surprised to find out that the city bus goes right by my home that I could use to get to work, or virtually anywhere in town.

I want my son to start off right financially with his first vehicle. I wanted him to follow the same methodology that anyone would do that wants to get in the groove of paying cash for their vehicles.

• Eliminate any current car payments
• Find an alternative mode of transportation whether it be buying an older vehicle with cash, or using public transportation
• Determine how much to save each month and stick to it
• Determine how long you want to save before you buy a vehicle
• Be realistic about what kind of vehicle you will be able to afford

Even if some of these steps don’t apply to my son right now, we discussed them as well as the advantages of saving for your next car as opposed driving something technically owned by the bank, and paying interest on it.

How about you all? Do you finance your vehicles or have you taken the steps to pay cash?   Have you ever thought about what it would feel like to pay cash for your next ride?

Share your experiences by commenting below!

4 Things You Need to Know About Your Fiancé Before You Tie the Knot

The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.

My first marriage failed about three years ago. Since then, I have met an amazing woman and have proposed yet again. Our big date is coming up in July, and to be completely honest, I’m starting to shake in my boots a little. Am I making a better decision this time? What about those certain areas that we don’t agree on? Can we stay together forever? These thoughts are racing through my head as I think about our past and our future together. Thankfully I have some comfort in knowing that we align on the four biggies in marriage:

1. Money
2. Children
3. Religious Beliefs
4. In-laws

Let’s take a moment and dive into each one of these categories to get a clearer picture on whether or not you are in alignment with your future spouse.

Money

For starters, how much money do you have, and how much does your fiancé have? Do you have $100,000 in debt and he/she has absolutely no debt? Are do you have a huge net worth and he/she is dirt poor? Without some early communication, these areas could become very stressful for both of you, especially if one of you feels that your debt is your debt, and they have no responsibility for it. Figure this out early or it will turn into a huge problem later.

Are you both savers? Are you both spenders? Or is one of you a spender and the other a saver?

If you are both savers, awesome, life will probably be pretty easy in the money department. If you’re both spenders, life can start out fun, but when retirement time approaches, one of you will likely freak out and want to save something, while the other wants to keep spending, so this naturally will present a future problem. If you two are opposites (one saver and one spender), life can really be trying and might result in constant bickering and stress.

As an overarching rule, you should have a common money goal with your spouse. Do you both want to retire with millions of dollars and move to Arizona? Or, maybe you both want to be self-employed and live simply. Whatever the case may be, make certain that you are both heading toward a common future goal in the money department. With this goal, both of your paths should at least be heading toward the same general area.

Children

Do both you and your fiancé want to have children? If so, when and how many? Are you open to adopting or is this your preferred method of becoming parents? If so, where will you adopt from and how much are you willing to spend? With children, will one of you become a stay-at-home parent, or will you both work and put your child in daycare?

There are a ton of questions surrounding children, but if one of you wants no children and the other wants three, this is a huge red flag! Between my fiancé and I, she would like to have two, where I would rather have three. Thankfully, our numbers aren’t too far off and one of us can adjust when the time comes to decide on the third or to stick with two.

Religious Beliefs

If you plan to have kids, the issue of different religions is quite serious and can often divide your family. If you are Catholic and your partner is an atheist, how will your kids be raised? Do you present them with all of the beliefs and let them choose? Does the more dominant parent just take control and teach them their religious beliefs? What if all the kids choose one parent’s belief system and then leave the other parent as the outsider?

The absolute best way to succeed in marriage (even if you don’t have kids) is to marry someone that has similar religious beliefs. Do not marry someone with the expectation that they will conform to your beliefs. This is not fair to them and it probably won’t work out for you.

In-Laws

Oh the in-laws… Without a doubt, your fiancé’s parents are different than yours. They might be more outgoing, they might be habitual liars, and they might be more prone to argue with one another. But, no matter the differences, you must be okay with who they are when you are going into the marriage.

While you might not see them all the time, they will definitely have an impact on your life between you and your spouse. Plus, with children (yes, again with the kids), you must be okay with letting your in-laws take the kids once in a while. If, at this point, you are uncomfortable with how your in-laws treat you, then chances are that things are not going to go over so well when they start talking to your children.

When you marry your fiancé, you aren’t just marrying him/her, you’re marrying into their family. Is that exciting or terrifying? Hopefully it’s the former and not the latter.

How about you all? How do you and your fiancé align within these four categories? What other factors to consider before getting married?

Share your experiences by commenting below.

***Photo courtesy https://www.flickr.com/photos/kumon/43128198/

Well-Known Franchises That Are Cheap to Start

The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.

Have you ever thought about going into business for yourself, but didn’t necessarily want to start from scratch? A franchise may just be what you need in your life. In its basic form, a franchise is a business that has already been formed and has a proven system that anyone can replicate.

One of the first successful franchises in the United States dates back to the 1960s when Ray Kroc (then a multi-mixer salesman) bought the rights to the restaurant, “McDonald’s” and sold the franchise over and over again to willing entrepreneurs. All Ray asked for was a portion of their sales volume. Many succeeded and the popularity of the franchise was born.

If you want to sign up as a McDonald’s franchisee today, you’re a little late to the party. Not only do you need millions of dollars to start one, you need to already be an owner of an existing franchise. So, since this obviously isn’t going to happen, what are your other options? There must be some well-known franchises that are cheap to start. Indeed there are. Take a look at the five successful franchises below that still have a reasonable price tag.

1) Chick-Fil-A

Chick-Fil-A is a fantastic franchise – so much so that there are over 20,000 applicants a year to become the next franchisee. Since the company cares more about the success of their business and their franchisees, they obviously do not allow every applicant to become an owner. Instead, they select between 75-80 new operators per year. Of those selected, 95% of them are a success and stick with the business for the long term.

The initial cost to the new owner-operator is $10,000 plus 15% of sales for the rent of the building, and then another 50% of the pre-tax profits. It sounds like a lot, and it is, but the start-up costs are next to nothing so almost anyone can become an owner of their very own franchise!

2) Subway

Subway has been a hot franchise ever since Jared shed hundreds of pounds on his “Subway diet”. In certain areas, there are almost too many Subway franchises and the market is becoming saturated, but if you can find a location that doesn’t have a Subway, then it could certainly become a great opportunity for you!

The franchise fee of a Subway is $15,000 and you have to foot the cost of the building (often $250k or more). They require you to pay royalties of 8% of gross sales and an advertising fee of 4.5%. The prices seem a little bit steep initially, but if you decide to call it quits, you will likely have equity in the building when you sell.

3) Cold Stone Creamery

Cold Stone Creamery opened their first store in 1988. The slow-churned ice cream became a hit quite quickly and the franchise was born.

If you want to start a Cold Stone Creamery today, you’ll need to have a net worth of $250,000. If you’re clear here, then you’ll have to come up with just $27,000 for the franchise fee, which is pretty meager compared to the costs of a full-fledged start-up. Of course, you’ll need a down-payment on the building (as is the case with most franchises), and you’ll have to pay 6% of your sales for royalties and 3% for national advertising.

4) Quiznos

The main rival to Subway, Quiznos offers subs that are considered less of a “fast-food” taste and more of a sandwich that would make your mouth water. Overall, the franchise is doing pretty well and offers its franchisees a pretty good deal to get started.

The initial cost of a Quiznos is $25,000 for the franchise fee and then they charge you 7% of sales for the royalty costs. And, as is typical, the cost of the building is yours too. But, even with that, the rates are quite cheap for an almost guaranteed business start-up!

5) Dairy Queen

Dairy Queen has been around for 75 years and is still a favorite today. The name is obviously recognizable, so if you want to start a franchise that is instantly known, then this is a strong possibility for you.

To start a Dairy Queen franchise, you’ll need to have $35,000 for the initial franchise fee and a down payment for the building. Once you open the doors and start earning all that cash, you’ll have to dish out 4% of gross sales for royalties and 6% for marketing expenses.

Summary

Each one of these options is feasible, but the absolute cheapest option is obviously the Chick-Fil-A franchise. Plus, notice where the royalty fees are pulled from: profits, not sales. That is a huge difference. With all other franchises, you could be losing money, but you would still owe money to the franchise because they take a percentage of your overall sales.

Chick-Fil-A on the other hand, wants to be sure that you earn money first and foremost, and then will accept half of your profits. If you want to put up very little money initially and have a very high success opportunity, then Chick-Fil-A would be the opportunity for you.

How about you all? Are you considering a franchise opportunity? What steps have you taken so far to move forward?

Share your experiences by commenting below!

***Photo courtesy: https://www.flickr.com/photos/informant/32974814/

Which Do You Prefer: Experiences or Things?

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

Growing up, my family didn’t have much money. Many of my clothes came from my three older cousins as hand-me-downs. One time, I hit the mother lode—a pair of Gloria Vanderbilt jeans was in the bag of clothes.

Woo hoo!

I finally had a pair of designer jeans. I wore them almost every day and felt like a million bucks. Once, my best friend asked to wear them, and I let her.

When they came back to me, they were covered with big white splotches. My friend had “accidentally” washed them when there was bleach in the washer. My jeans were ruined, and I was devastated.

Back to my unbranded jeans and my hand-me-down fashion.

In that instant, I learned how quickly the joy from material items can fade.

I’ve always been too cheap to buy designer anything. Why waste the money when the clothes will only last a little while? After my Gloria Vanderbilt jeans debacle, I never worried much about designer clothes.

In fact, I have decidedly not kept up with the Jones’ for much of my life. I drove a Toyota Tercel until it had 150,000 miles on it. Our current Toyota Sienna has 152,500 miles on it, and I have no plan to replace it any time soon.

I now regularly buy my clothes second hand, and in the world of big screen TVs, we make do with our 24 inch screen. Oh, we only have one television in our house.

My kids don’t have or play video games, and they have a very limited number of toys.

My husband and I have cheap flip cell phones with pay as you go minutes. No smart phones here.

We live a simple life, free of much materialism.

Sure, we’re on a tight budget, but mostly, my husband and I agree that we’d like to spend money on experiences rather than things.

I often feel alone in this thought process because many of the families around me have nice things—designer clothes, iPhones, new cars, etc. Yet, one researcher argues that my family and I are on to something:

“There’s a very logical assumption that most people make when spending their money: that because a physical object will lasts longer, it will make us happier for a longer time than a one-off experience like a concert or vacation. According to recent research, it turns out that assumption is completely wrong.

“‘One of the enemies of happiness is adaption,’ says Dr. Thomas Gilovich, a psychology professor at Cornell University who has been studying the question of money and happiness for over two decades. ‘We buy things to make us happy, and we succeed. But only for a while. New things are exciting to us at first, but then we adapt to them’” (FastCoExist.com).

This phenomenon explains why some people are always chasing the latest technology. You know the type. (Maybe you are one of them.) Even though your electronic gizmo, whether it be a phone, computer, video game, etc., is working just fine, you’ll put down your hard earned money to buy the next version. It’s a never ending quest to have the latest and greatest. I once worked with a man who had to get a part-time job on the side just to feed his technology habit.

However, Gilovich suggests, “Rather than buying the latest iPhone or a new BMW, you’ll get more happiness spending money on experiences like going to art exhibits, doing outdoor activities, learning a new skill, or traveling” (FastCoExist.com).

Even better, you won’t have a lot of clutter in your home because you’re not buying stuff.

Travel Experiences

In the year in between my undergraduate and graduate education, I had the opportunity to go to Switzerland to become a nanny for six weeks. I had never been outside the United States before. While being a nanny was pretty much a disaster (that could be an entirely different post!), I LOVED everything about traveling.

I can still remember my flight to Switzerland. I sat next to a man from Croatia who was a ship captain, and we talked almost the entire flight.

I had the chance to walk through downtown Zurich multiple times with the children, and I also took a trip by myself to the border of Italy. The journey was amazing.

Two years later, my cousin and I had the chance to go to China with one of my friends. We got to climb the Great Wall of China and visit Harbin for the annual ice sculpture exhibit. We rode a train for 20+ hours to get there. It was an experience I’ll never forget. To this day, my cousin and I can talk about that trip and instantly feel like we’re right back there again.

Dr. Thomas Gilovich acknowledges, “Shared experiences connect us more to other people than shared consumption. You’re much more likely to feel connected to someone you took a vacation with in Bogota than someone who also happens to have bought a $4,000 TV” (FastCoExist.com).

Two years after my trip to China, my husband and I traveled to Japan to visit his family before we became engaged. I’ll never forget walking out of the train station in Osaka and being fascinated by the busy traffic and all the different hair and fashion styles. I saw beautiful mountains and golden temples. It was definitely a trip to remember.

Family Experiences

Now that I’m older and have a family, worldwide travel isn’t as easy or as practical as it used to be. Instead, we try to travel locally and spend time showing the kids places rather than buying them things.

Since we moved to Tucson last summer, we’ve taken the kids to many different sites such as local missions, Old Tucson, and Tombstone. These trips weren’t always cheap, but they created memories that bond us as a family.

Why Are Experiences So Much Better than Things?

Think about your things. How many do you truly value? I can think of sentimental things that I love like a few of my late grandma’s possessions that I have or the ring I bought in Ireland, but honestly, there are not many material things that I’m attached to.

By contrast, I think fondly on all of my vacations, even a trip to Ireland where we stayed in a dank, damp cottage and found, in our beds that were so old that they sunk in the middle, many spiders. It wasn’t a good time while I was there, but now, all of us who went look back on the trip fondly and with laughter.

The Atlantic supports this idea, arguing, “Looking back on purchase made, experiences make people happier than do possessions. It’s kind of counter to the logic that if you pay for an experience, like a vacation, it will be over and gone; but if you buy a tangible thing, a couch, at least you’ll have it for a long time. Actually most of us have a pretty intense capacity for tolerance, or hedonic adaptation, where we stop appreciating things to which we’re constantly exposed. iPhones, clothes, couches, et cetera, just become background. They deteriorate or become obsolete. It’s the fleetingness of experiential purchases that endears us to them. Either they’re not around long enough to become imperfect, or they are imperfect, but our memories and stories of them get sweet with time. Even a bad experience becomes a good story.”

How about you all? What do you prefer? Possessions or experiences? Did you prefer one previously and now you prefer the other?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/brianauer/2112309566/

Nine Things To Make Next Year’s Taxes Easier

The following post is by MPFJ staff writer Travis, who blogs at Enemy of Debt where he candidly shares his family’s financial struggles, failures and successes. As a father and husband, he provides a unique perspective on balancing debt, finances, and family.

This year’s tax deadline has passed, and unless you’ve got some extenuating circumstances your taxes are filed and either a refund has been deposited in your account, or you’ve written a check out to the IRS. Each year I do exactly the same thing after completing my tax return as required by the government.

First I breath a sigh of relief, then I start getting ready for next year’s tax return.

There’s no time to waste. Here’s nine things that should be done immediately to help make filing next year’s tax return as stress free as possible.

Change Your Withholdings

The first thing to be done is to analyze the results of this year’s return. If you underpaid or overpaid your taxes during the year, you may want to consider changing your tax withholdings with your employer to prevent the same outcome.   Some people like getting a sizable tax return because it forces them to save money. That may seem like an interest free loan to the government, but it may actually be a great idea for people that have a hard time forcing themselves to save. The interest rate of a savings account these days is a fraction of a percent, so you’re not losing out on much interest accumulation. If you want a different outcome next year, change your withholdings now.

Label A Manilla Envelope

I keep all my important tax documents in a manilla envelope labeled with the tax year they pertain to.   Right after filing my taxes for the previous year, I get a new envelope and write the next year in big numbers on the front. I then make a checklist of everything I need to prepare my tax return such as W2s, 1099s, charitable contribution statements, property tax statements and more.

Print a Physical Copy Of This Year’s Return

A physical copy of my tax return (federal and state) along with all the worksheets is printed and placed in the current year’s manilla envelope. I have an electronic version stored on my computer, and backed up to a USB drive as well. But I like to have a physical copy printed out and filed with all my other tax documentation. Electronic data loss happens, and your tax returns would be invaluable if you were ever audited.

Find Your Property Tax Statement

How a county handles property taxes may differ across the country, but in my area we have our property tax payment coupons for the year already at this point. I don’t actually need them since my mortgage holder takes care of payment, so I put the entire statement in the manilla envelope. Otherwise, it may end up hiding at the bottom of some drawer, or even accidentally thrown away. I can then check that item off on the front of the envelope.

Copy Your Vehicle Registration Receipt

In some states part or all of the yearly vehicle registration fee is tax deductible. My family has two vehicles, one of which we’ve already paid this year’s registration fee. I make a copy of the receipt, since the original should be kept in the vehicle, and put the copy in the envelope. Another item checked off the list!

Get Ready For Medical Receipts

I label a normal mailing envelope with the words, “Medical Receipts,” and put that into the larger manilla envelope. Receipts for each medical expense incurred throughout the year will be put into the envelope for possible use while doing our taxes next year.

Business Documentation

I label another envelope with the word, “Business” Since I’m a freelance writer, I have business expenses during the year that may be tax deductible. I also will put a copy of my monthly invoices into the envelope. Having a place to store them all together ensures I don’t have to hunt for them when tax season rolls around at the beginning of next year.

Additional Items

The Manilla envelope will serve as your central repository for tax documentation. If anything happens during the year that may affect my taxes, the documentation goes in this envelope. For example, if I sell, buy, or refinance a home, or liquidate some investments, the documentation goes immediately into this envelope, and it gets listed on the front.

File It

Take the envelopes from both this year and next year and file them away in your filing cabinet, your fire-proof safe,or wherever you store your important documents. Put them to place so you know where they’re at when you need to find them again.

You may not feel like worrying about next year’s taxes now, but it’s the perfect time to start when the items needed are fresh in your memory. These activities will take very little time, and will get you started on the road to a successful tax filing next year.

Happy Tax Season 2016, now you’re ready!

How about you all? Do you have any other tips or tricks that you use to help make your next years taxes easier?

Share your experiences by commenting below!

***Photo courtesy Robert Cochrane at FreeDigitalPhotos.net

Getting Calls from Debt Collectors at Work or Home at All Hours of the Day or Night? You Do Have Options to Make Them Stop

The following is a guest post by Paul Smith.  He is an attorney with an interest in personal finance.  He blogs at insideconsumerfinance.blogspot.com.

The Fair Debt Collection Practices Act (FDCPA) is a federal statute that protects consumers from abusive debt collection practices. It was passed by Congress to “eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.”

What can debt collectors not do under the FDCPA?

The FDCPA sets forth strict guidelines concerning the methods that debt collectors can use against consumers in an effort to collect on debts.

For instance, the debt collectors cannot contact a consumer by telephone before 8:00 a.m. or after 9:00 local time. The debt collector also cannot contact the consumer at their place of employment if the debt collector knows that the employer knows (or has reason to know) the employer prohibits the consumer from receiving those communications. (In plain English this means that the debt collector cannot contact you at work if they know your employer says you can’t receive those types of communications at work).

Debt collectors also cannot harass or abuse consumers. Forms of harassment or abuse that are specifically prohibited under the Fair Debt Collection Practices Act include threatening to arrest someone, beat them up, curse the consumer, or repeatedly calling someone without identifying that the person calling is a debt collector in an effort to get the person to pay the debt.

What can you do if a debt collector is violating these rules?

Let’s say you keep getting calls at 10:00 p.m., well after your children are asleep. Well, you have options.

One of the best and least known options a consumer has under the Fair Debt Collection Practices Act permits a consumer to request that a debt collector cease ALL communication with the consumer, a request the debt collector MUST honor or else they are in violation of the law.

Under this provision, a debt collector cannot contact a consumer by any means: phone, letter, electronic communications, etc. once the consumer has given the debt collector written notice that either (i) the consumer refuses to pay the debt or (ii) the consumer wants the debt collector to cease all communication with him or her.

The key here MUST give written notice he or she wishes to receive no further communication from the debt collector. If you don’t then, the debt collector can keep calling you (between the hours of 8:00 a.m. and 9:00 p.m.) or emailing you, sending you letters, etc.

Once the written notice has been given, the debt collector can only communicate with the consumer to confirm that the debt collector will stop communicating with him or her or to notify the consumer that the debt collector is going to sue for non-payment of the debt.

And, once a lawsuit is filed, the debt collector cannot contact a consumer directly except through his or her attorney once the lawsuit has been filed (by either side).

Does this actually work?

Unfortunately many times debt collectors simply ignore this provision of the law and will continue to harass people even if they receive these notices. However, they do so at their peril-any communications after the written notice has been sent are continuing violations of the Fair Debt Collections Practices Act, each of which would entitle the consumer to sue the debt collector for money damages and attorney’s fees.

Having seen these kinds of cases while working in the court system, many debt collectors act in really outrageous ways that violate just about every provision in the FDCPA. However, this is almost better for a consumer who decides to challenge the debt collector in court, because they debt collection will have a very hard time winning the case if they’re engaging in that type of behavior.

What’s the bottom line?

If you’re being harassed by a debt collector, and no matter whether they are doing so within the bounds of the FDCPA, you do have options. I recognize that filing a lawsuit is a big investment of time, energy and money, but sending written notice is easy, painless and will only cost you the price of a stamp.

If you decide to take that route, then the written notice doesn’t need to be lengthy or very formal; just say your name, your account number (if applicable) and that you no longer wish to receive any communications from the debt collector. (I personally don’t recommend sending a letter saying you refuse to pay the debt because that will just encourage to get really aggressive and file a lawsuit).

If you feel like it, you could also say that if they continue to communicate with you after having received the notice, then you will consider that a violation of the Fair Debt Collection Practices Act and you will file a lawsuit against the debt collector if they continue to contact you in an attempt to collect the debt.

How about you all? Do you have any experience getting debt collectors to stop calling or know someone that has? Have you tried a strategy not discussed here that worked for you?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/meddygarnet/3186273338

How To Save Money on Gas

The following is a post by MPFJ staff writer, Jeff.  Jeff writes about reducing waste, saving money and building freedom at his website, Sustainable Life Blog.

I remember when I got my first car, I ended up with a cheap, used, gas guzzling SUV. It was around 2002, and gas was cheap (under $2) and I didn’t really care how bad my MPG was. Not long later, gas prices began to march up, and I started feeling the pinch. Instead of drive less, I just complained about the price and it didn’t really force any habit changes.

Not long after that I moved to go to school, and didn’t take car with me, I started to ride the bus or my bike everywhere. While I watched gas prices go up from the sidelines, it made me pretty happy that I didn’t have to pay them and I was left out of all the complaining about prices going up. Unfortunately, after I got my first job it was quite a ways away from where I lived, and I was once again bowing to the mercy of the gas prices. I was driving 100+ miles per day, so even small fluctuations could have a deep impact on what I was able to pay down in debt that month.

During that time, I figured out quite a few different ways to save money on gas, so here they are.

Drive Less

This is probably the most obvious, but no one ever takes it seriously. Think about how many trips you make that are less than a mile or 2 – those can easily be walked (if the environments are right) or they can be combined with other errands into one trip instead of multiple trips. If the distance is over 2 miles but less than 5 or so, look into hopping on your bike and running your errands. Most things that you head out to get can probably be put in a backpack for the trip home.

I’ve started doing this, and have really enjoyed it so far. In 2014, I bought approximately 7 tanks of gas, and 3 of those were purchased (and used) specifically so I could travel to the airport.

Driving less may seem odd at first, but it’s easy to get used to and it’s a great money saver. It will insulate you from price shocks when gas goes back up – and it will at some point.

Use the Cruise

When you’re driving at highway speeds, it can be tempting to sit and keep your foot on the gas and constantly adjust your speed. This is bad for gas consumption as it makes the engine work harder and use more fuel. Set the cruise control to a reasonable speed (at or near the speed limit) and enjoy the fuel savings from a consistent engine RPM.

Watch your In Town Driving

When I’m biking to work in the morning, I have about a mile commute, and since I’m traveling from a neighborhood to the CBD in my town, I go to a lot of the same places cars are going. You’d think that over that distance they would get there much quicker than I do, but I can beat them or get there at the same time because I don’t stop nearly as much as they do. Many cars floor it after the light turns green, only to advance a block or two and then come to a complete stop and wait, while I’m slowly pedaling towards them.

I time it perfectly so that when I get to the light the signal changes from red to green and I don’t have to stop on my bike at all. It takes a lot of power to get a vehicle moving again, and if you just drive a bit slower from one signal to the next and make sure you didn’t have to stop between them, you’ll save a bit of gas every time.

These are the three things that I’ve found are the most worth watching if you’re looking to save money on gas. They helped me during the times I was commuting long distances to work (I bike now) and were able to give me the cash to keep my debt repayment on track.

How about you all? What are your favorite gas saving tips? How much have you been able to save by implementing your own gas saving tips?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/dok1/13229214115/

Consider These Factors Before You Leave Your Job for a New One

The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.

Have you ever considered leaving the company you’re currently with to venture off into an exciting new career? I think we all have at some point. In the past couple of years, I have probably thought about working elsewhere four or five times. But, when I review the pros and cons, I ultimately end up sticking it out with my current employer.

When considering a new job, what are some of the most important factors to consider? In my mind, I have six important areas that I consult and that have ultimately kept me in my current job.

1) Salary

This is honestly the first thing everyone looks at – probably because it’s an easy comparison and it makes up the bulk of your work benefits. If the new job pays $150k compared to your current $50k salary, then an extra 401k contribution in your old job probably isn’t going to matter that much. But, if the new job promises to pay $55,000 compared to your current salary of $50,000, then you might want to take your comparison a bit further.

2) 401k Contributions

The 401k contribution is a wonderful perk that’s offered by many companies. Often, if you agree to contribute 3% of your salary into your company sponsored 401k, then they will likely match 100% of your contribution. So, by putting in $100 a month and getting a full match on that money, $200 is actually going into your account. Obviously, the higher the match, the better. If the new company does not offer a match on your investment contributions, then you might need to figure out how much this impacts your overall “pay” for the year.

3) Bonuses

As a means to incentivize their employees to work hard, some employers offer a performance-based bonus each quarter or year. If your company very regularly hits their bonus targets and pays out extra money because of it, be sure to factor this into your overall yearly pay. The same is true for the new company where you’re thinking about working. Toward the latter stages of the interview process, it would be an excellent idea to ask about the possibility of a bonus payout to see if that would alter your thoughts about taking on this new role.

4) Medical Benefits

Over the past few years, the costs of healthcare have soared – sometimes showing cost increases of 40% or more year-over-year. As these costs have continued to rise, the importance of checking into the medical benefits of the new company sometimes ranks right up there with salary. After all, if you’re left paying out $200 per paycheck compared to your last job where you only owed $20, that’s going to impact your life severely! Before you sign that contract, be sure to ask for the medical options and the amount that it would cost you per paycheck in premiums.

5) Atmosphere/Culture

During your interview process with that new company, do your best to scope out what the culture is like. It can be difficult, but ask anyone you can about how they like working the job they do, or better yet, ask them what the best aspect of their job is. If they stand there with a blank look on their face, then the culture is probably terrible.

Culture can mean a wide variety of things. It could mean flexibility, it could mean the number of hours that your boss expects you to work, it could even mean the mood of the place of employment. An excellent culture is hard to find, so if you sense that a place of employment has a good one, jump on it.

6) Location

I didn’t realize how important the location of my work was until I started interviewing with a company that was 45 minutes away (compared to my current 10 minute commute). The pay was about $20,000 better, but the drive-time would add more than an hour to every single working day! At 5 hours per week, and 52 weeks a year, this equates to over 250 extra hours “worked”. It just wasn’t worth it to me. I absolutely love living close to work. It clears up my mornings and my evening to do whatever it is that I want to do.

Before you hop into a new career with a new company, be sure to consider all of the factors above.

How about you all?  Have you ever taken a new job without considering all the factors? What other factors should you consider before taking a new job that aren’t listed in this post?

Share your experiences by commenting below!

***Photo courtesy http://commons.wikimedia.org/wiki/File:Embl%C3%A8me_de_la_Justice.jpg

The Hidden Cost of Hybrids

The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.

Hybrids first went mainstream with the introduction of the Toyota Prius that boasted an impressive fuel efficiency of 42 miles per gallon in the city and 41 mpgs on the highway. Compared to the typical average of well below 30mpgs, this car was simply amazing. It was quiet, high tech, surprisingly spacious, and had some decent power considering its efficiency. Obviously, this car would save money in gas, but were there additional costs associated with the hybrid that few car-buyers would notice before the purchase? As with most purchases, unfortunately yes, there are costs that may hurt your ability to save money in the long run.

1) The Higher Initial Costs

When purchasing a newer model, many dealers like to talk in term of payments, rather than the actual total that the car is selling for. Often, this is because they do not want their customers to experience sticker shock. It’s much easier to wrap your head around a $300 a month payment than it is to spend a total of $28,000. Also, to make the costs between gasoline-powered vehicles and hybrids seem negligible, they can extend the time frame of payments on the hybrid so that the per-month price is basically the same.

In reality though, the sticker price on the hybrid model is often much more expensive than the non-hybrid – typically $2,500-$5,000 more expensive. So immediately you are starting in the hole by purchasing a hybrid vehicle, just hoping that you can make up the difference in fuel savings.

2) Variable Fuel Prices

One of the biggest selling factors for hybrid vehicles in 2013 and much of 2014 was the steep cost of gas. If you typically spent $2,000 a year at the pump, purchasing a hybrid could immediately save you $750 a year, which would cover the initial purchase costs in just five years!

However, at the surprise to many, gas prices actually started going down in the fall of 2014 and they still remain relatively low today. With these reduced running costs, the break-even time frame extends beyond the five-year mark and is now more like eight or nine years! It becomes a little more difficult to justify a purchase when it won’t start saving you money until a decade after the purchase.

Source: GasBuddy.com

3) Highway Trips

The people that are typically the most interested in hybrid vehicles are the ones that travel great distances to work. It certainly makes sense that they would be looking for better fuel efficiency with the miles that they’re racking up each year, but the only problem is that the hybrid vehicle isn’t really built to save as much fuel with long highway trips. In actuality, the hybrid actually gets better fuel efficiency with more starts and stops in the city (which is why they often boast a higher city efficiency rating). And on the flip side, gasoline-powered vehicles often get better gas mileage on the highway, so the divide between the gas mileage of the hybrid vs. the gasoline model isn’t that great.

As an example, let’s compare my 2001 Honda Civic to the 2000 Toyota Prius. My Honda gets 27mpg city, and 34 mpg highway. As we stated before, the Prius gets 42mpg city and 41mpg highway. If I drive mostly long distances, then I’m likely taking the highway almost everywhere I go, and the fuel efficiency is only a slight amount better than my non-hybrid vehicle, so the savings is even less than you might initially think.

4) The Cost of the Battery

Hybrid vehicles have a specially made battery that is powerful enough to power the entire car for periods of time. This amount of power is impressive, but it doesn’t come without a hefty price tag. If a hybrid car needs a battery replacement, it can often cost between $1,000 and $6,000 dollars. Yikes! If your car is eight years old at this point, then it might not even be worth the amount of the replacement!

Because people are scared of this cost, used hybrid vehicles can often be more difficult to sell. So, even if your battery doesn’t fail, you will still be eating some of the cost because you’ll have to sell the car for cheaper than a run-of-the-mill gas-powered model.

Before your next car purchase, be sure to review the hidden costs!

How about you all?  What hidden costs did you encounter when purchasing your last car (regardless of what kind it was)?

Share your experiences by commenting below!