Evan Vitale

Evan Vitale – Cut The Fat and Save!

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By Evan Vitale

For some, it’s a daily struggle to survive, while others are able to make it week-to-week. It’s tough out there on a lot of individuals and we should count our blessings daily for what we have.

A personal crisis – such as a health problem; a tooth ache; a flat tire or even replacing the battery in your car – can be extremely tough on finances for many people. Unfortunately, those who are “surviving” never get to live the dream of owning a new car or taking a beach vacation.

This is why having the ability and the means to save a little bit of money will go a long way in overcoming unexpected financial woes.

You can do it, even if you’re living from check-to-check. Here’s how you can put a little more money in your savings account and start a “rainy day” fund or save for a well-deserved family vacation:

  • Stop making purchases at convenient stores. Yes, they are convenient, but the mark-up on all products is cutting into your cash. Don’t start and end your day with a stop at the quickie mart for a soda, coffee or frozen slushy drink.
  • Break bad habits that are costing you a ton of money, especially if you are smoking cigarettes. Depending on where you live, etc., a pack of cigarettes costs between $4 and $8 per pack! A neighbor of a friend of mine smokes two packs a day at $5 per pack. That’s $10 per day x 30 days = $300 a month going up in smoke (not to mention potential long-term health problems).
  • Take your lunch to work. Eating lunch at fast food restaurants costs around $10 per day.
  • Cut back on cable television. Call your local cable TV provider and see if you can get a lower rate or, if necessary, cut your current cable TV package by one level and save $10 to $20 per month. Some have even cut the cord entirely and save over $100 per month. Instead, they rely on their local internet service to stream television programs, watch Netflix, etc.

Living from check-to-check is difficult and stressful. However, by following some of these little tips, you can start saving some money and ease a little financial stress.

Evan Vitale – Did You Miss The Tax Deadline?

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By Evan Vitale

Now that we’ve passed the deadline – Monday, April 18, 2016 – for filing your federal, state and local tax returns, what should you do if you didn’t file or if you asked for an extension?

What are you waiting on?

Not filing your tax returns isn’t going to make the problem going away. The problem is still there and you certain don’t want the Internal Revenue Service to file your tax returns for you, nor do you want to get a letter in the mail from the IRS.

Some avoid filing tax returns because they know they are going to owe taxes and don’t have the financial ability to write a check at the same time. That’s OK. A lot of people owe taxes. You should still file your returns and get them in the mail ASAP. This way, you’ll have an exact amount that you owe and you can start working out a payment play with the IRS (yes, they will work with you on a payment plan that fits within your budget).

Filing an extension doesn’t delay the due date on the amount of taxes owed. Many people believe an extension means they don’t have to file tax forms nor do they have to pay until October 15. That is false. Filing for an extension means your forms are due by that date. The amount of tax you owe is still due on Monday, April 18, 2016.

By filing for an extension, you are still responsible for any non-filing penalties that have accrued to that date.

If you need help in getting your tax returns completed – even after the deadline AND even if you are not financially able to pay your taxes – you can visit one of many local tax filing offices that pop up all over the place this time of year or call an accountant to help you.

Don’t delay. Even though you missed the deadline, you are still required to get your returns completed and in the mail.

Evan Vitale – Filing Your Taxes FAQ

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By Evan Vitale

With tax day just around the corner, sometimes a few questions might come to mind if we’re surprised and find out that we owe taxes instead of receiving a refund. Here are some questions and answers to paying taxes and facing some unexpected financial responsibility.

What happens if I can’t pay my taxes this year?

You still want to sign and send in your tax return and pay as much as you can. The Internal Revenue Service (IRS) has payment options available, depending on how much you owe and your current financial situation. Each option has different requirements and some have fees.

What happens if I file late?

If you file your tax return late – with or without payment – the IRS will likely charge you a penalty. In addition, if you owe taxes, the IRS charges daily interest on unpaid tax bills. Therefore, the longer you wait to file or begin a payment plan, the more interest you will owe.

What happens if I don’t file my taxes?

This isn’t a good idea. The IRS will likely send you reminders to file. If ignored, the IRS may then file a substitute return on your behalf. Granted, while this may sound like a good idea in having the IRS file for you, you’ll probably not receive entitled deductions or credits.

If you are a chronic non-filer, you will be subject to additional penalties and, in some cases, criminal prosecution. Delinquent taxpayers who owe more than $25,000 will eventually receive a personal visit from an IRS agent to collect payment.

Remember:

  • Complete and file your federal, state and local (if required) tax returns on time to avoid penalties.
  • Even if you can’t afford to pay your tax obligations, it is better to file without payment than it is to wait until a later date. If you can, make some time of payment with your returns.
  • Never avoid or ignore filing your tax returns on time.

Evan Vitale – Final Tax Tips

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By Evan Vitale 

As we continue to get closer and closer to the deadline for filing local, county, state and federal tax returns, here are a few final tips for you to take into consideration:

– Remember, federal tax returns need to be filed by Monday, April 18, 2016. This gives you a few extra days than the normal April 15 deadline that you might be used to in previous years.

– Do not wait until the last minute to file. Inevitably, something will go wrong if you do. Your tax return software won’t work; you might have trouble downloading tax forms (because everyone else is doing it at the same time), etc. Plan to start as soon as possible.

– If you’re a small business owner, you should already have a handle on things and are in touch with your accountant/CPA in getting returns filed on time. Now would be a great time to get in touch with them to see if there’s anything else they need for you in order to assist them in getting everything completed on time and returned to you for your review and signatures.

– Make sure you have all of the necessary tax forms you need in order to file your returns on time. You can visit https://www.irs.gov to download federal forms. Note: The U.S. Post Office doesn’t offer tax return forms. You’ll also need to obtain any forms necessary so you can file your local, county and state returns. Again, don’t wait until the last minute as some of these forms may not be available for you to download online.

– Filing an extension does not extend the deadline for you to pay any taxes due. It only means you can file your federal return at a later day. Any taxes that are due need to be paid before or on April 18, 2016.

Good Luck!

 

Evan Vitale – Donating To Charity

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By Evan Vitale

To donate to a charity and how much to donate is always a tough question when it comes to wanting to help a local charity in need, keeping our personal budget in check, paying off debts and saving some money for a rainy day.

Still, the need of local charities is great and constantly pulls at our heartstrings to give something to those who have less than what we enjoy (and take for granted) on a daily basis.

How can you help?

– Many religious faiths ask local members to give 10% of their earnings as tithes. Anything beyond 10% is considered an “offering.” Many choose to give through their church, who then can decide how to use it in local missions, food banks, etc.

– If you want to give a financial donation to a local charity, some will allow you to break up a yearly donation into 12 monthly amounts charged to your credit card making payments easier.

– If you can’t give financially, many charities are more than happy if you give your time to help. This can include running errands, secretarial work, designing or updating a website, painting and other maintenance duties and more.

– Giving extra food such as canned goods or fruit to a local food pantry or church outreach program is always a welcomed option. Food is always in high demand year-round, so you may consider picking up a few extra cans of food or pasta when you’re doing your regular weekly grocery shopping.

– Donate your good, used clothing. There’s probably some clothing items in your closet that no longer fit or you don’t like anymore. As long as they are “gently used” or better, they will always be appreciated.

– Donate your used car. Instead of trading in your car during your next auto purchase, some charities accept used cars as donations. These are then sold at auto auctions with the money from the sale going to the charity.

In all cases, be sure to get a receipt for your donation as they are tax deductible. For more information, contact your local charity and talk to your accountant.

Evan Vitale – Business and Personal Expenses

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By Evan Vitale

If you’re working at home or starting a new business, it’s easy to mix personal and business money and expenses. However, it’s extremely important to keep these two types of “funds” separate for record-keeping and tax purposes.

One of the ways to do this is by using Quickbooks accounting software or by subscribing to an online subscription-based software service. While every program and software may have its own way to create different accounts, the basic principles will be the same in order to help you keep better track of your revenues; expenses and separating personal from business.

By entering (recording) accurate expenses and revenues, you’ll be able to generate proper reports for your accountant to review. Many of these reports will come in handy during tax season and for completing and filing local, state and federal tax returns.

The best way to set up such accounting systems is to talk to your accountant and get his/her advice on which programs they like and recommend for your current business situation. Some accountants prefer Quickbooks, but others are starting to favor online systems in that will allow accountant to login to your account (with proper credentials, of course) and generate reports, etc.

A friend of mine, who has been self-employed for nearly 20 years, tells me his accountant helped him establish accounts and categories within Quickbooks. He also creates business invoices within Quickbooks, so all accounts receivables and payables reports can be easily and quickly generated. Software programs also alert you to “past due” dates on both receivables and payables and trigger reminders for sending regularly monthly invoices; making deposits, etc.

Sometimes, when you’re starting out with a new business, it’s easy to make purchases at a store for personal use and for business use. Some will separate the order and have it totaled separately for easier receipt purposes. Another idea is to make all business purchases with a business credit card, in which the credit card company will generate a monthly “receipt” for you.

Regardless of your system and style, record-keeping will be the most important item on your agenda as you get started with your own business.

Evan Vitale – Save Big on Food Costs

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By Evan Vitale

One of the biggest expenses we face every day is the cost of eating.

Whether we are avid grocery store shoppers or enjoy eating out for meals every week, our consumption of food is one area that you should definitely watch what you spend and look for ways on how to save on your weekly eating expenses.

Of course, we’re not talking about cutting way back to the point of eating saltines and drinking water every day. Instead, let’s look at some reasonable ways in which you can save money, but still enjoy the kinds of foods you like to eat.

Here are some helpful tips:

– Take your lunch to work. We’ve probably heard of this one our entire lives, but it’s true. Taking your lunch to work saves money from eating lunch at local restaurants and fast food joints. It also saves time during your lunch hour of standing in line or waiting for a table during the busy lunch time.

– Use coupons whenever you can. If you like to shop and purchase name brand products, using coupons is the only way to go. Here, you can still enjoy the brands you like to purchase, but save a few dollars at the same time.

– Join the grocery store’s shopper club. Yes, they are going to track your purchases, but they also give you discounts each week on certain products when you use your shopper card. Some grocery store chains even offer fuel points which give you up to $1 per gallon of gasoline based on the fuel points you have earned with your shopper’s card.

– Consider buying the store brand instead of the name brand. You might not notice the difference in taste or quality, but you will notice the savings.

– Keep a grocery list at home; take it with you and follow it. By doing this, you’ll avoid impulse purchases and keep your grocery budget in line.

– Cut the number of times you eat out each week. If you’re eating two or three meals at a restaurant each week, consider cutting it to one or two at the most. Cutting out one meal at a restaurant can save you up to $75 a month (per person) depending on what and where you eat.

These simple tips will indeed help you save on your grocery shopping and food consumption bill. Eat well, but save, too!

Evan Vitale – Saving Money At Home

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By Evan Vitale

We all look for ways to save money, trim budgets and make ends meet when things are getting a little tight in the financial department.

However, there are some easy-to-find money saving ideas that you can find at home. These include:

  • Electricity. Of course, we all know the rule of turning off lights when we leave the room, but you should also consider using low-wattage, energy-efficient light bulbs as well. If you are in a habit of turning on a porch light, consider turning it off sooner (before you go to bed) or switching to a motion light which only turns on when someone approaches your house.
  • Appliances and electronics. While this also goes into the “electricity” category, always consider using energy-saving appliances if you need to buy a new appliance. In addition, your DVD player and other electronics are actually “on” and burning a little bit of power even when you turn them off. Consider plugging them into a surge protector and turning it off (or unplugging it) when your electronics are not in use.
  • Call your electric and/or gas company. Most of these offer free energy inspections to help you save on your electrical and heating and cooling costs.
  • Do you have a home phone service through your Internet provider? Do you also have a cell phone? Is there a need for two phones?
  • Cut back on your cable TV service. Call your cable TV provider to see if you can reduce your cost by dropping down into a lower-priced tier.
  • Take quicker showers or consider saving water by using a low-flow shower head. This will save on your water consumption and it will also save electricity/gas needed for your water heater.
  • Speaking of water heaters, buy a water heater wrap. This will help prevent heat escape from your water heater year round.
  • When possible, use less hot water to wash clothes or with your dishwasher.
  • As temperatures warm up with the upcoming summer months, try to use a fan or a ceiling fan at night to stay cool instead of running an air conditioner.
  • When summer arrives and you rely on the air conditioner more often, you’ll save energy and costs by setting the AC at a specific, comfortable temperature and never change it. Some say 70 degrees is ideal for both day and night temperatures.

This is a simple start. As you look for ways to save money in your home, you’ll be surprised at other opportunities you will find.

Evan Vitale – How Payday Loans Work

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By Evan Vitale

You’ve probably seen them all over town and advertised in local newspapers; radio and televisions stations, but how do payday loan services work and are they an option for you when you need a short-term loan to help get through a bump in the road?

Payday loan services are exactly what their name implies: they offer a short-term loan until your next pay day. These services charge a very high fee or interest rate (based on state laws) for the loan. For example, some may charge only $1 for a $100 loan, but others have been known to charge as much as $20 for a $100 loan. Wow!

Applying for a payday loan is very simple and most services have only a few requirements in order to qualify for a payday loan:

– Borrowers typically need to be age 21 or over.

– Must be submit proof of income (usually a few payroll stubs to prove employment history).

– A valid checking account.

When you get the loan (usually in cash), you will write the payday loan service a check for the loan amount plus the fee. The check is post-dated to your next paid date so the payday loan service won’t deposit the check until the date on the check.

Unfortunately, some individuals get into trouble with payday loans:

– The borrower fails to deposit their paycheck to their bank account in time or doesn’t have sufficient funds in the account in order to cover the post-dated check. Now, the borrow faces additional “bad check” fees and possible criminal charges.

– Some payday loan places offer an extension on the post-dated check. Instead of cashing the check, they will allow the borrower to get an additional loan on the written check. So, now you’re getting a loan on top of the loan making your original $100 loan into a $140 payback.

Payday loans should be treated like any other loan and requires the borrowers’ to maintain financial responsibility to avoid penalties and additional charges. They can be helpful in case of a short-term emergency, but they shouldn’t be relied upon for long-term financial help.

Evan Vitale – Avoiding Bankruptcy

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By Evan Vitale

Before you throw in the towel and move into the mind frame that bankruptcy is your only way out, there are some considerations and options that you should consider in avoiding bankruptcy.

Yes, for some, bankruptcy is the only answer. However, many people choose bankruptcy as the only “fix all” option. Bankruptcy should never be your first choice. It should only be used when you have fully exhausted all other options. Remember, in some cases, bankruptcy could mean loss of your home, automobile(s) and other personal assets along with severe limitations to your credit.

Discuss your options with your attorney. In some cases, your law firm can help you work out a payback plan, reduce penalties and interest and, perhaps, negotiate a settlement so you can pay back your debts quicker.

Debt consolidation; debt settlement and/or agreements with creditors are all in your best interest. In almost all cases, creditors are willing to work out a payment plan rather than force you into bankruptcy. Some individuals have been able to work out a payment plan on their own or with the assistance of a non-profit credit counseling service.

The best way to avoid bankruptcy is by practicing responsible financial management. Live within your means. Cut your expenses, especially in the areas of entertainment (movies, eating out, cable TV, etc.) and eating out (i.e., take your lunch with you to work). You can do it if you really put your mind to it and look for ways to cut your costs. You’ll feel better about paying off your debt and, eventually, you’ll be back on your feet financially. Over time, your credit will improve.

Remember, bankruptcy is a very serious matter and it stays on your credit record for up to 10 years. Be sure you consult with an attorney specializing in bankruptcy before making any quick decisions about bankruptcy.