Back to School Shopping on a budget

Posted on July 19, 2025 by FCA Admin

It’s back to school time and we are all on a budget.  How can you still get the clothes and supplies that you need without breaking the bank? Well, keep reading to find out how.

·         Separate wants from needs:  In most cases, your child’s school supplies from last school year can be reused. Review the supplies that your child currently has to see if new school supplies are really needed.

·         Look for back to school promotions: Wal-Mart usually has great promotions on all your back to school needs.  Visit their website for the most recent promotions.

·         Use coupons:  Most major retailers post their coupons in the Sunday paper.  Pick up your Sunday paper before rushing to the department stores.

·         Visit your local dollar store: Dollar Tree usually keeps a good stock of seasonal items.  This also includes school supplies.  Their online website is always up to date with what is in the stores.  Visit their website at www.dollartree.com.

 

How are you getting ready for back to school? Where are you finding your discounts?

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Picking the right Bank Account

Posted on June 10, 2025 by FCA Admin

There are several things to consider when selecting a bank account.  There are also several perks that many banks now offer.  Some of these include interest, free checking, student checking, and free gifts.  But what should you consider when shopping for a new bank account?

 

·         Consider how much money you plan to deposit.  Most banks have free checking but do not pay interest.  The interest paying accounts usually require a larger minimum balance than the non interest paying accounts.

·         Consider the number of checks you plan to write per month.  The no fee accounts typically limit the number of checks you can write per month.

·         Consider the bank services that you would like to utilize.  Some of these include ease of finding ATMs.  Other services include 24 hour customer service and Saturday branch operations.  My favorite bank for customer service would have to be my credit union, Pentagon Federal Credit Union.  They have 24/7 customer service.  Call them anytime and they will be there, excluding holidays. 

·         Lastly, consider the number of different accounts you would like to set up.  The more accounts you have with a bank, the more price breaks you are likely to receive.  For example, you may have a checking account with one bank and then purchase a CD, open an IRA, and have a mortgage. The bank will consider this factor very favorably when you attempt to open another account.

With these helpful things in mind, I hope you will have a better idea of what to consider when shopping around for a new bank or bank account option.  More information on this topic can be found at the bankrate.com website at www.bankrate.com.

 

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Keeping the New Year’s Resolution

Posted on May 28, 2025 by FCA Admin

The first quarter of the year is almost over.  And if you are like me, you haven’t been keeping your New Year’s Resolutions.  Of course we are all human and so far this year has been full of surprises and challenges for the entire country.  These challenges often force us to take our eyes off of our goals.  But in order to be successful in life, it is important to try and refocus even if it means revising our goals.

How do I refocus you might ask?  The first thing I like to do is ask myself why I created the goal in the first place.  Was it that important to me?  Is the goal for myself or is it someone else’s goal.  Let’s say that your goal was to stay within your budget.  This is a personal goal and staying within your budget will be better for you financially.  Therefore this is your own goal. 

Another option is to revise your goal.  Perhaps the goal was too broad.  It can be helpful to revise the goal and break it down into smaller more achievable goals.  If we use the budget example, you can try to break it down into smaller goals by first creating a list of all of your expenses.  Then use an Excel spreadsheet to calculate the expenses and obtain a total.  Another step would be to break out the expenses into categories such as variable and fixed expenses.

Lastly, once you have revised your goal, go ahead and set a new goal. Perhaps you can give yourself a shorter deadline.  Using the budget example again, we revised the goal to stay within my budget for the variable expenses and review my budget quarterly. This is our new goal.

In summary, no matter what your goals were for 2010, do not lose sight of them because the first quarter of the year has been challenging.  Revisit and refocus on your goals because the year is not yet over.  There is always plenty of time to start over and make a fresh start.

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Summer Hiring? Know the Rules

Posted on April 7, 2025 by FCA Admin

Are you planning to hire temporary workers for the summer?  Are you a parent and own 100% of your business?  If so, it is imperative that you know the rules for summer hiring.

 

  • If you’re a parent and you own 100% of your business, your children can work for you regardless of their age or number of hours worked.  However, if children are under the age of 16, they cannot work in hazardous conditions.
  • Owners of 100% of their business who only employ immediate family are not required to pay the minimum wage.
  • Owners of 100% of their business who employ their children who are under 21 years do not have to pay FUTA.
  • If your children are under 18, the wages are exempt from FICA if the parents are the only owners of the business.
  • Other misc. provisions:
    • Paid vacation is not required for part time employees.
    • Providing health insurance is optional.
    • A W4 must be obtained for each employee.
    • Overtime must be paid for any hours worked over the 40 hour work week.

 

More information can be found at http://www.irs.gov/businesses/small/article/0,,id=97748,00.html.

 

 

 

 

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Six Tips for People Who Pay Estimated Taxes

Posted on March 7, 2025 by FCA Admin

Issue Number:    IRS Tax Tip 2012-65

Inside This Issue

You may need to pay estimated taxes to the IRS during the year if you have income that is not subject to withholding. This depends on what you do for a living and the types of income you receive.

These six tips from the IRS explain estimated taxes and how to pay them.

1. If you have income from sources such as self-employment, interest, dividends, alimony, rent, gains from the sales of assets, prizes or awards, then you may have to pay estimated tax.

2. As a general rule, you must pay estimated taxes in 2012 if both of these statements apply: 1) You expect to owe at least $1,000 in tax after subtracting your tax withholding (if you have any) and tax credits, and 2) You expect your withholding and credits to be less than the smaller of 90 percent of your 2012 taxes or 100 percent of the tax on your 2011 return. Special rules apply for farmers, fishermen, certain household employers and certain higher income taxpayers.

3. For Sole Proprietors, Partners and S Corporation shareholders, you generally have to make estimated tax payments if you expect to owe $1,000 or more in tax when you file your return.

4. To figure your estimated tax, include your expected gross income, taxable income, taxes, deductions and credits for the year. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, for this. You want to be as accurate as possible to avoid penalties. Also, consider changes in your situation and recent tax law changes.

5. The year is divided into four payment periods, or due dates, for estimated tax purposes. Those dates generally are April 15, June 15, Sept. 15 and Jan. 15 of the next or following year.

6. Form 1040-ES, Estimated Tax for Individuals, has everything you need to pay estimated taxes. It includes instructions, worksheets, schedules and payment vouchers. However, the easiest way to pay estimated taxes is electronically through the Electronic Federal Tax Payment System, or EFTPS, at www.irs.gov. You can also pay estimated taxes by check or money order using the Estimated Tax Payment Voucher or by credit or debit card.

For more information on estimated taxes, refer to Form 1040-ES and its instructions and Publication 505, Tax Withholding and Estimated Tax. These forms and publications are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Links:

Note. From Issue Number: IRS Tax Tip 2012-65. Copyright 2012 by Copyright Holder. Reprinted with permission.

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Action Items for the New Year

Posted on February 20, 2025 by FCA Admin

I wrote this blog two years ago as a means of encouraging readers to prepare for the New Year.  Well, two years later, this message is still relevant as the times have not changed much from the prior years. Therefore, this message bears repeating. As 2010 draws to a close, many are hopeful for significant changes in 2011.  Among these is a better economic outlook.  But what can you do now to make way for a better economic outlook?

  1. Keep enough cash available.  I can’t stress this enough.  This year has been a record year for layoffs.  Even if you’re not in danger of losing your job, it is still imperative to keep enough cash on hand.  Financial experts recommend having enough cash on hand to cover between 6 and 9 months of living expenses. 
  2. Diversify your investment portfolio. In order to have a well diversified investment portfolio, it is critical that one purchase stock in both U.S. and international companies.   Another way to diversity is to purchase investments in large and small companies or fixed income and stocks.  A financial advisor can show you how to properly diversity your investments.
  3. Continue to live below your means.  This one is self explanatory. At least I hope it is.  Living below your means does not mean depriving yourself of the good things in life.  It basically encompasses making wiser choices about everyday purchases.  It’s about distinguishing between wants and needs.
  4. Pay off expensive debts.  Basically what this means is paying off those high interest rate credit cards.  If you’re having difficulty, your accountant or financial advisor can assist you with coming up with a plan.  Another option is to contact the credit card company directly and ask them to lower your interest rate.
  5. Review your credit report. This is a high priority especially if you are considering refinancing your mortgage.  Mortgage rates are at an all time low.  Even if you are not planning on refinancing, reviewing your credit report on a quarterly or annual basis is a good habit to create.  Check out www.annualcreditreport.com for more information on how to obtain a free copy of your credit report.
  6. Create a budget and stick to it. Even though I listed this topic last, it does not mean that it is the least important.  As I mentioned in a previous blog, budgets build discipline.  I always encourage everyone to create one.  Not only will you see where your money is going, you will also see how much you have left for savings.  If you need help creating and sticking to a budget, be sure to reach out to your accountant or financial professional.

With that being said, I wish you all a Happy Holiday Season and a Prosperous 2011!

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Start Smart in 2025

Posted on January 3, 2025 by FCA Admin

Let’s face it, 2024 had been a very challenging year for everyone regardless of income level.  As we prepare for 2025, let’s start planning now in order to avoid some of the financial pitfalls encountered in 2024. For example, have you put off creating that emergency fund?  Start planning now so that in January 2025, you’ll have a game plan in place.  Other things to think about:

  • Check your withholding allowances on your pay statement.  Don’t give the government an interest free loan.   Use the free calculators on bankrate.com to assist you.
  • Plan to pay more than the minimum on your credit card.  This will help you avoid excessive interest fees.
  • Develop the monthly budget. Start early and do it every month.  Soon it will become a habit.
  • Start using the personal finance software.  A great choice is mint.com.  This free software allows you to track your finances and even provides a weekly summary.
  • Learn and start investing. My personal favorite is sharebuilder.com. This investing site is very user friendly and also has a section on investor education.

These are just a few of suggestions on how to start the New Year on a financially sound basis.  What are some of the other financial techniques that you will employ?

j0442969

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To transfer or not to transfer

Posted on September 10, 2024 by FCA Admin

Credit card balance transfers are very common.  We usually think we are getting a good deal if we are offered a zero percent APR balance transfer.  This is a great offer.  However, too often we fail to think about the long term effects of a credit card balance transfer.

For example, can you avoid incurring new charges on the old card?  For many people this is a difficult task.  Additionally, what do you plan to do with the old card?  It is recommended that you keep the account open.  This helps build up your FICO score.

Other important factors to consider are whether you will get approved for the new card.  Applying is the easy part. However, the challenge is getting the approval in the first place.  Lastly, be sure to consider fees that will be incurred as a result of the balance transfer.  Most if not all major credit card companies charge fees for balance transfers.

For more useful information on credit cards and balance transfers, visit the bankrate.com website and search on credit cards.

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Don’t let credit card debt get you down

Posted on August 10, 2024 by FCA Admin

So you have a lot of credit card debt?  So what now?  Many people find themselves in this situation and feel helpless and hopeless.  The key is to not give up.  There are many resources out there to help you. Among them are:

 

  • Credit counseling: There are several nonprofit agencies out there dedicated to helping you.  Do not fall for those agencies that are asking you to pay up front.  The real agencies will not charge for their services.

 

  • Consolidation loan: This technique has been useful for many people. Consolidation loans can be obtained through many resources.  Check with your local bank or consider peer to peer lending.

 

  • Debt settlement: Consider contacting your credit card company and negotiate to settle your debt for a lower amount.  For example, try to settle half of your debt.  You can accomplish this by calling or writing to your credit card company.  Explain the situation to them and see if they are willing to negotiate and settle a portion of your debt.

 

  • Pay off your high interest cards: Prioritize your debt so that you are paying off your high-interest credit cards first. This will take some practice.  Be sure to take into account all of the debt that you owe so that you can come up with the right strategy.

 

 

For more useful information on credit cards and balance transfers, visit the bankrate.com website and search on credit cards.

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Get it in writing.

Posted on July 31, 2024 by FCA Admin

 

Many people are now borrowing from family and friends due to the current economic crisis.   This new phenomenon known as social lending has increased significantly over the past year. However, many fail to document the loan.  This in turn leads to disputes later on regarding the money borrowed.   Experts now recommend using a third party intermediary that specializes in managing social loans.  One of these companies is Virgin Money USA http://www.virginmoneyus.com/.

The company makes it easy and affordable to facilitate the transaction.  This will save many the heart ache and headache associated with lending money to friends and family.  Here’s how it works:

·         Find someone that you would like to borrow money from and create a proposal.

·         Make contact with Virgin money to manage the loan.

·         Select interest rate and repayment terms.

Another good reason to use a service such as Virgin Money is that the company follows up and takes immediate action if the borrower is delinquent.  

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