Archive for the ‘Money Stories’ Category
Thursday, June 19th, 2008 |
We just recently returned from our fun vacation to the Dominican Republic. We stayed at the Sunscape Casa del Mar La Romana, an “all-inclusive” resort, and celebrated our second anniversary.
(Our feet, on vacation)
This was our first time trying the “all-inclusive” (meaning drinks, dining, and activities included) type of resort. We’ve avoided them mainly because (1) we haven’t been to that many resorts; and (2) when we do go to a resort, it’s usually to a place that has a surrounding city, where food and activities are more available. We like to venture out most of the time and take our chances in the “free market”, so to speak.
(more…)
Posted in Money Stories | 7 Comments »
Thursday, May 29th, 2008 |
Economic Stimulus Payment Direct Deposit Schedule
Since May 9th, I’ve been wondering why we have yet to receive our tax rebate/economic stimulus payment by direct deposit. According to my SSN and the payment schedule, we were supposed to get the deposit on May 9th.
What I Know About the Economic Stimulus Payment
I know this is somewhat old news, so forgive me…but I’ve been wanting to post about this for a few weeks now and haven’t found the time. I previously posted about the tax rebate or economic stimulus payment, and how you could get your money quicker if you put your direct deposit information on your tax return (even if you were paying taxes), which I did.
I also posted about the revised tax rebate or economic stimulus payment schedule (which I assumed applied to me), and some vishing scams associated with the stimulus payments (which I think I’ve avoided).
I’ve since visited the Economic Stimulus Payment Calculator and determined that we should be receiving $1,200. I’ve even blogged about how you can use the stimulus money to get you free groceries and gas.
Could I be one of the unlucky 1,500? Doubt it. Wouldn’t I know by now?
You see where I’m going with this, right? WHERE IS OUR PAYMENT!!! I don’t get it. I’m pretty thick headed when it comes to tax regulation and rules, so help me figure this one out.
How I Filed Our Taxes
Let’s review my set of circumstances and let’s see if you can help me figure out why we haven’t received the payment via direct deposit.
- We recieved the original (and wasteful) ”you will be getting a Stimulus payment” letter from the IRS
- I completed our 1040, along with a Schedule C (for this blog), and a Form 8606 (to report previous non-deductible contributions to my IRA)
- I used TurboTax purchased off the retail shelf
- TurboTax calculated our stimulus payment to be $1,200
- I put our banking information on the 1040 (which TurboTax advised me to do)
- I physically mailed these to the IRS on April 11th, 2008 (thus, I didn’t incur any tax prep or filing fees)
- We owed money this year (so much we had a minor penalty), so I sent a check for the payment
- The IRS cashed the check on April 16th, 2008
What Others Are Saying
It seems that by now everyone should have already (a) received their stimulus payment via direct deposit, or (b) found out when they’ll be getting their check. Some people have already recieved their paper check. Others are in my boat and haven’t recieved their payment either.
Economic Stimulus Payment Paper Check Schedule
Initially, I’ll say that I’ve resided to the fact that we’ll be getting a paper check, so I guess I’ll refer to the paper check payment schedule:
If I’m getting a paper check, it will be mailed no later than (and received a few days after) June 20, 2008.
The IRS FAQ About The Economic Stimulus Payment
But wait…I just went to the IRS website and skimmed through their Economic Stimulus Payment FAQ and found this which seems to apply to our situation:
Q. I filed my return on time, but I haven’t received my stimulus payment, even though the payment date listed for my Social Security number has passed. Why?
A. In general, the payment schedule only applies if your return was received and the IRS finished processing it before April 15. If you filed your return on time, but close to the April 15 deadline, the IRS may not have finished processing it before April 15. Processing times for tax returns and stimulus payments vary. If you are getting a regular income-tax refund, the IRS will send you that refund first. Normally, your stimulus payment will follow one to two weeks later. If you are not expecting a regular tax refund, your stimulus payment generally should arrive a minimum of six weeks after you file.
The Answer?
Okay, now we’re getting somewhere. Because I filed our return on the 11th and they most likely didn’t process it until the 16th or later, the earliest we’ll be receiving the payment “should” have been yesterday, May 28th, 2008 (exactly 6 weeks from April 16th). I just checked our account…the deposit still hasn’t made it. Hmmm…. I guess I’ll have to wait a few days to determine if it’s something else.
So, my next question is…will we get it by paper check or direct deposit? I guess it doesn’t matter, but since the direct deposit schedule is now over, are they only processing checks going forward?
Posted in Money Stories, Tax | 25 Comments »
Tuesday, May 27th, 2008 |
Our Bad Debt: May 2008
Change of Debt Reduction Strategy
On your way to becoming bad debt free, don’t be afraid to change your strategy every now and again. Life changes all the time, so be ready and flexible to adjust your strategy for getting rid of your debt, based on the most current set of circumstances.
Take our debt for example…If you’ve noticed lately, I removed the debt reduction single bar graph in the side bar and replaced it with two bar graphs. We didn’t go out and buy a second car, we just decided to change the debt that we are aggressively paying down and I’m now listing both debts.
Instead of paying off the SUV loan faster than the terms require, we’ve begun paying off our car loan faster. We already made our first huge payment. I’ve just waited a bit to you update you.
Why The Change?
You might be saying, “Wait, PT, I thought the SUV had the highest interest rate?” Yes, it does (by 1%). But there’s more to life than interest rates, right? The reason we’re switching to paying off the car faster:
1. This Car’s The One. We now know we’re going to use the car for at least 2 more years. Mrs. PT is going to Graduate School and will be tripling her commute everyday. This smaller car will come in handy for the commute. Since we know this is the car we’re definitely keeping for a while, we’re opting to pay it off first.
2. Bigger Payment, Less Income. This car payment is the biggest and will free up extra money in our budget. Since Mrs. PT is going to school next year, we won’t be making the same income. It will be nice to have an extra $350+ in the budget.
3. The SUV is a Gas Guzzler. With gas prices continuing to rise, I just don’t know if it’s worth it to keep this beast. For me to really enjoy it, I’d need to put another $2,000 into fixing it up. It’s a ‘99 but has only 60,000 miles on it. With this SUV, my heart is saying “yes”, but my head has always said “no”. Until I can decide on what to do with this thing, I’m shifting my big payments to the car note.
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As always, thanks for putting up with these personal updates. It’s great motivation for me. Hopefully you’re able to find a little inspiration as well. Have you changed your debt reduction strategy lately based on changing circumstances? Share your story below in the comments.
Posted in Debt Reduction, Money Stories | 6 Comments »
Friday, May 23rd, 2008 |
A reader informed me today that CNN Money has rolled out a couple of new Millionaire in the Making profiles. I’ve updated my complete list of Millionaire in the Making series profiles to include these two new couples. I’ve also subscribed to CNN Money’s Personal Finance Feed so I wouldn’t miss another new profile. I read the profiles and want to share some of the highlights with you and get your thoughts.
The Wisneskis: Future Millionaires (x3)
One couple, Nate and Nicki Wisneski, are 27 and have been together since seventh grade. They have a six year-old and live in Oneida, WI. They’re doing an excellent job with their combined incomes and are set to retire at 65 with more than 3 Million. See more of their profile.
Meet The Shifrins: Future Millionaires
The Shifrins are both U.S. Army Captains at the age of 27. They (Matthew and Kristen) met a few years back while based at the same location. They got married a year and a half later. They’ve served in Iraq and plan on retiring with the Army.
Not great savers on their own, since married they’ve been on a tear. Being deployed in Iraq for a while, along with their newly found passion for saving their money, helped them to be way ahead when they returned. Here are their current stats according to the CNN profile.
Since their return from Iraq, the Shifrins now save one of their paychecks and spend the other. This is similar to the automatic savings strategy that Mrs. PT and I are now using.
The Shifrins are definitely in excellent shape for a married couple their age. I’m impressed. They’ve been very wise with their decisions. The question now is what to do with that $20,000 in credit card debt?
Considering they will be buying a house within a year, what should be their strategy with the debt? Leave your suggestion in the comment section below…
Posted in Money Stories | 7 Comments »
Thursday, May 22nd, 2008 |
The “10 Things” Series Is Complete
I’ve finally completed my series of post (for beginners) that listed the 10 things that we’ve done that I believe has brought success with our personal finances. Just last week I posted #10. This series is essentially my story with money:
What’s This Series About?
I say it’s for beginners, but really there’s enough in there for everyone to learn something. I started this series about one year ago. I know. I know. A series is probably supposed to finish a bit earlier than that (lol). It’s not that I wasn’t aware of the ten things before I started (…well, sort of). Mainly, I just wasn’t a consistent blogger, and I went in hiding for a few months. That’s a blessing in disguise though. Because it took me so long to finish, you can see the progression of my knowledge of personal finance and writing skills.
What Should You Get From It?
In each of the posts, I’ve tried to add a little back story about how I’ve done things, as well as some application for you to take away. Forgive me if my tone in some of the articles comes across a bit pompous. Not my intent at all…just trying to motivate. I’ve made mistakes along the way, and I’m by no means completely successful. However, I feel like I’m on track to be successful because of these 10 Things. If you haven’t already, give one a try.
If the “10 Things” have assisted/motivated you in anyway, please let me hear about it in either the comments or by contacting me. I’d love to hear YOUR story.
Posted in 10 Things, Money Stories | 6 Comments »
Friday, May 2nd, 2008 |
Question from a Reader
A few weeks ago I had a Google chat with a friend and reader. He shared his story of a debt that’s been forgiven by the creditor (after bankruptcy), but that is still on his credit report. I tried answering his question the best I could but I’m not an expert. I thought I’d share our chat and see if you, the reader, and provide some suggestions for further resolution.
Chat Transcript - Question
Charles: got time for a money question?
me: sure…whatcha got?
Charles: it’s a long story, you sure?
me: Sure…
Charles: A few years ago, I took chapter 13
I had about $20K in Stafford loans
on the advice of my lawyer, I called all my creditors and told them I wasn’t paying any more bills until the case was heard
student loans were not included in the bankruptcy
but I stopped getting notices from either my Stafford or my Perkins loans holders
I ended up paying the Perkins loans off myself
here’s where it gets wierd
follow me so far?
me: yes
Charles: cool
I’ve called the company that holds the Stafford loans repeatedly, for years, and they’ve always told me they charged off the loan
me: ok
Charles: The gaurantor (sp?) paid it
problem is, I called the company who supposedly paid it, and they say they didn’t
I’ve actually had a problem where everyone refuses to take my money
me: weird for sure
Charles: Now, I look at my credit report, and it’s sown that the original company is still owner of the loans
and they count toward my available credit
I’m told they did this:
One part of the company paid the loan and killed my account, for the purpose of not contacting me while in chap 13
but with the intention of having me resume payments when I emrged
yet, every time I contact them, they tell me the account is paid off
it’s a case of the left hand not knowing what the right hand is doing
and I’m in the middle
me: hmmm
Charles: What do I do?!
Chat Transcript - My Answer
me: have you checked all three credit reports?
Charles:all three, yes
freecreditreport.com
it’s been 4 years
surely there’s a statute of limitations or something
If I can get off without paying, fine, but even if I start paying again, that’d be fine with me
but now, there’s $20K on my credit report taking up space
me: to be honest, I don’t have a quick answer for you.
is the 20K a debt?
Charles: I didn’t think you would
me: or avail?
Charles: considered part of my available credit
in other words, if I could afford $22K in credit, $20K iof it is used
meaning all they could loan me would be $2K
me: ok..so it’s showing up as a debt
Charles: someone else, that is
yes
yet, they won’t take my money
freaky, huh?
me: let me take this transcript and digest it for a moment…my initial response is you need to follow the steps to correct your credit report…get this removed.
Charles: you see, I don’t even know who to ask about this!
No one has an answer
I’ve fallen through the financial cracks!
me: Sounds to me like you need to take the steps to get your report cleaned up.
Charles: ?
me: http://ptmoney.com/2008/03/07/how-to-fix-your-credit-report-and-identity-theft/
me: With a clean report you’d be able to move forward with a clean slate.
Charles: so basically dispute the loans?
me: email the lender
and ask for a letter stating
Charles: part of my problem is I don’t really dispute that I owe the loans
me: well, that’s a conscience thing
Charles: heh, their own company disputes I owe the loans
me: that fact is, the lender doens’t say you owe them
i find quarters on the ground all the time
and i pick them up
take what they are giving you
just get it in writing and then pass that along to the credit agencies
Charles: so, email them and ask them you write me a letter saying my account has been closed and the loans have been paid off?
me: yes
then take that letter and jump through the credit reporting agencies hoops
Charles: okay
another thing is that it shows up as several loans
but I do the same dispute for all of them, right?
me: one for each year?
Charles: I dunno
me: yes, each loan should have a unique acct no
use that when you ask fo rthe clean letter
Charles: I can send you my report in PDF if you’d like
I highly doubt you’ll steal my identity
nor want to
me: lol
i’d love to see how it all works out
me: great talking with you Charles
Charles: thanks for letting me bend your ear
Side note: Charles could have gone to http://annualcreditreport.com for free reports.
Question for You
Did I give Charles good advice? Will he be able to get the debt removed from his credit report?
Photo: by Seansie
Posted in Debt Reduction, Money Stories | 3 Comments »
Wednesday, April 23rd, 2008 |
This is a re-print of a guest post I did for Money, Matter, and More Musings.
The Graduate
My brother-in-law is graduating from high school this week. Naturally, I reflected back to my own graduation, how glad I was at the time to be finished with high school, and how excited I was for college and the future. I also thought back at how naive I was in regards to my personal finances. So, I thought I would draft a letter to all the young people graduating from high school this spring and provide some practical advice geared towards their personal finances.
Dear High School Graduate,
Congratulations on your accomplishment! You should be proud. Newton D. Baker once said, “The man who graduates today and stops learning tomorrow is uneducated the day after.” With that, I offer you these words of advice for your finances as you continue on your journey of learning.
Start Saving Now
Save a percentage of every dollar you get, no matter if it’s given or earned. I know. I know. You’ve heard this before, but I promise you, along with getting your advanced degree, this is one of the most important things you can do now to secure your future.
You may not be earning much over the next few years, but very little is needed now in order to have a big impact later. It’s true that there is more time to save later, but your saving will never be as effective as it is right now. So, if you haven’t already, begin saving and make it a part of your normal routine.
Understand the Cost of College
I really want you to understand what it will take to pay for college. Most of you will either get scholarships, student loans, or some combination of the two. You may not stop to think about the true cost or to fully understand that student loan debt. Please, do not take on more student loan debt than you actually need. You’ll only end up blowing the extra money on “stuff” and food.
Lastly, don’t just sign the loan papers and move on. Sit down with someone who can fully explain the debt you are getting into and help you to visualize your future with this debt. Believe me, fully understanding this transaction will do nothing but cause you to apply for just a few more scholarships or grants.
Be Careful with Credit Cards
Now that you’re a responsible member of adult society, the credit card companies will begin soliciting you. Don’t listen to them or their sales pitches. Seek out trusted advice, understand the ramifications, and get a card (for emergencies) on your terms.
When you do use the card, use it with the knowledge that you will pay it off the following month. Never view the card as a way to finance your livelihood, and save the big purchases (car, flat screen TV, etc…) for later in life, when you’ve saved for them.
Find a Mentor
There’s always someone else out there who has been through it. No matter how smart you think you are, you can always learn something from others. Find someone stable and successful that you admire and pick their brain for every financial step you take. You will get ahead much quicker by learning from the mistakes and successes of others than by always trying to do it on your own.
Congratulations again on your success thus far. I wish you the best in your future and finances.
Sincerely,
PT from Prime Time Money
Do you have any other advice for a graduate? Leave it in the comments below.
Photo: by CarbonNYC
Posted in Money Stories, Personal Finance Links | 4 Comments »
