Organize with Files for Tax Time and Warranty Claims

Organize for 2012 so you'll be prepared for taxes, broken appliances and warranty work. Start a simple filing system with an expandable folder or file drawer. You don't need much to get started and keep your system up-to-date. Manila file folders work with a file drawer. Here's an easy system that works.

Label your file folders for saving receipts and papers you'll need for taxes or reference. Some labels you might use are 

• credit cards

• house

• income

• insurance

• taxes

• miscellaneous

Date each file for the year.

During the year, stick the receipts in the correct file. Any order will do at this point. You don't have to be a fanatic for this system to work -- just don't throw away receipts or information about the things you might need, especially credit cards and insurance.

When it's tax time, pull the files for the year and sort the receipts. They will all be together for easy retrieval. Use the tax file to write down the items you can deduct from your taxes, such as property tax or maybe even your vehicle renewal fees. Calculate your credit card interest paid and other enlightening figures, so you can see where your money goes. Review the files for taxes and for budget resolutions -- improvements you can make to your spending habits.

You'll also need a warranty file for all of your small equipment. An alphabetical expandable file works well for this. When you purchase anything with a warranty such as electronic, electrical or hand equipment, clip the receipt to the warranty and mark the date of purchase. File your warranty information alphabetically by the name of the item for easy retrieval. This file is ongoing, and doesn't need to be started new each year. Include household items such as water heater, microwave and appliance warranties as well as warranties for toaster and small kitchen appliances. If it has a warranty, you need to save the paperwork to make a warranty claim. Be sure to make a warranty claim if you have an issue with any piece of equipment within the warranty period. This notifies the company of a potential problem as well as assists you in the repair or replacement of the item. 

If your mind doesn't like the thought of organizing, this filing system works with little mental agony. Although the tax deadline isn't here yet, it's time to set  up new files for 2012 so you'll have purchases and expenses for the year all in one place.

See you next time!

Linda

cajunC

P.S. The red-bellied woodpecker is in our backyard, and claims the territory in this area of Texas.

Be Charitable -- Buy American this Christmas Season

If you haven't done all of your Christmas shopping yet, maybe you can help your neighbor and your country when you shop.

ABC News published a blog by Ben Forer recently, entitled "Made in America: Creating Jobs For Christmas" about creating jobs by buying American products. The calculations show that if we purchase $64 in American-made products, we would create 200,000 jobs here and now. Why aren't we doing this? Maybe we don't understand the economy, or maybe we have difficulty locating items made in America. Sales are up 6 percent over last year, and this is an opportunity for consumers to make a difference.

When we felt the recession of the 1980s, even WalMart encouraged us to buy American goods, and had a little logo to distinguish those items. I've looked for items in the dollar stores and big box stores and have concluded that there is very little available for the consumer there that is made in America. Maybe some of the grocery store fruits and vegetables and food products are produced in the U.S. Some of the discount stores here in Texas don't even have many items printed in the English language. These are items made for export or maybe for stores catering to Spanish-speaking consumers.

You can locate American-made items online, but you have to make the effort. If it saves jobs for your family or creates a job for you, would you buy American?

If you can't buy American, consider purchasing used items. Purchasing used items is a form of recycling, good for the environment and the economy. Some items available on the Internet aren't really used but are NOS or new old stock. These items may come from a warehouse or store overstock from years ago, or may come from an individual who purchased several and didn't use them. For example, we sell unused sewing and crafts patterns that are new old stock, and the price is much less than a new pattern. The older patterns were made in the U.S., but more recent patterns are made in Mexico.

ABC News reports that the average American spends $700 on Christmas gifts. When you make your final purchases, look for $64 in American-made items or buy more if you can. Support your neighbor and the economy. We can make a difference.

Have a wonderful holiday season!

Linda

Winter Utilities and Frugal Living -- Reduce Heating Bills

For most of the country, winter means an increase in utility bills. Heating in most areas of the United States is more expensive than cooling, although in Texas, cooling usually wins out. Your electric company may have an average billing, allowing you to pay the same amount each month. This can work to your advantage if you don't have the discipline to do this on your own.

If you can average your own electric bill, you can earn a little interest on the money before the electric company takes it. Here's how it works: If your electric bill is $150 in the summer and $250 in the winter, your average bill works out to about $200 a month. Every month that your bill is less than $200, pay yourself the difference in a savings account. If you can't make the total payment when the bill goes over $200, draw the money you need from the savings account. If you do this all year, you are averaging your own electric bill. The advantage is that you do not pay amounts early and you have that money earning interest until you need it.

Save money on your heating bill this year by turning the temperature down two degrees. If you keep the heat on 70 degrees, leave it on 68 degrees this year and save about 10 percent on your utility bill. Wear warmer clothing in the house and use a microwaveable bag to keep your feet warm. These bags are available at the drug store, and are sometimes on sale. One goes by the name of Bed Buddy and looks like a sock with sealed rice inside.

You can make your own microwaveable pal with rice in a bag. You don't even need to know how to sew. Use a fine weave fabric for the inside bag so the fine broken rice can't escape. A cup or two of rice is all you need. Pour it into the bag and tie or sew the bag closed. Place this bag in a cotton sock and sew or tie it closed.

Place this bag in the microwave for a minute to heat the rice and use it whenever you need to get warm. It works well to take to bed on a cold night or to set your feet on it while watching television. You can make one for everyone in the family much cheaper than you can raise the temperature in the house by two degrees. This microwave bag stays warm for an hour or so and can be heated over and over.

Your cat or dog may appreciate the microwaveable bag, too. If your pets stay outside in cold weather, you can cozy up the doghouse or cat bed with a warmer. The whole family gets one!

Make Money Work For You -- Rethink, Reduce Expenses and Save

Watch Your Money Like a Hawk. This is a Red Shouldered Hawk we photographed in our back yard in Texas today.

Learn to save money the same way you spend it -- with pleasure. If you can learn to appreciate money in the bank as much as you enjoy material objects, you can save money with a new attitude.

What money? Many of us are struggling to pay the bills, but it is a rare individual who doesn’t spend a little money on eating out, purchasing items you think you need but really can do without, or buying new when you could buy used items. Frugal doesn’t have to be a necessity; you can be frugal with lots of money on hand. Frugal is a way of living, and many people with money live modestly. Enjoy what you have and appreciate it without the constant thought of what life would be like if you had more.

Studies have shown that materialism does not make a happy marriage, reports ABC news and a survey published by Brigham Young University. Lower relationship satisfaction and less stability in a marriage are tied to a desire for money or material objects.

Rethink your needs. You need automobile insurance. Check to see if you can get a better rate. Consider increasing the deductible if you have comprehensive and collision. Consider dropping the comprehensive and collision if you have no lien on your vehicle. Comprehensive and collision cover only your car and only if you are at fault. If your car is older, your insurer uses Kelley Blue Book (kbb.com) or Edmunds.com figures for payment. If you park under a large tree with dead limbs or have another high-risk issue, you may decide you need to keep comprehensive and collision.

You need homeowner’s or renter’s insurance in case of vandalism, theft or fire. You can increase the deductible on this insurance as well. Your objective is to have coverage for a major loss. Reporting small claims only increases the premium cost of homeowner’s or renter’s insurance.

Save a little money here and there. Establish a savings account that is for windfalls. If you receive a refund or any unexpected income such as overtime pay, add to your windfall savings account. Have another savings account for bills you pay once a year, such as life insurance or homeowner’s insurance. Add one-tenth of the amount you need to this account every month. If you need $1,000 for life insurance, $1,000 for homeowner’s insurance and $1,000 for property taxes, add $100 each month to this savings account for each. That’s $300 a month for the immediate future. This keeps the money out of your checking account, and you’ll be glad to have it at tax time or when insurance is due.

Buy with profit considerations. When you make purchases, consider resale value. When you are purchasing kitchen plastics, you can guess they will be worthless as used products at a garage sale in just a couple of years. Buy items on sale that will increase in value or improve your life. Intangibles such as education at a state university or certification in a specialized field meet that goal. Clothing does not. Gold or silver may increase in value if you purchase it at a bargain price. If you need a book, consider an autographed copy. Autographed copies often increase in value, even in the author’s lifetime, and nearly always upon death of the author. Save flyers, advertising or photographs of the signing to show that the autograph is genuine.

Take little steps to make a better future for yourself. You can't wait until the economy improves, your kids are grown, you no longer have a car payment or whatever excuse you have. Today is the day.

See you soon with more help with the economy. You can do better for yourself, but it takes some work on your part.

Linda
cajunC

Selling Your Gold Jewelry -- Calculate the Value Before You Sell

Scrap gold or old jewelry may help you make it through "back to school." You only have one chance to sell your gold items, so make sure you have the knowledge to make a wise sale.

Do not sell to the companies that take a large advertisement in the local paper and set up in the motel. They won't be there next week when you realize you didn't get a good deal. Don't sell to companies that ask you to mail your gold to them without payment. In fact, don't sell to anyone until you have done your research.

Go to Kitco.com to check the price of gold for the day. The price you see is for a Troy ounce. A Troy ounce is 31.1 grams of gold, and you probably won't have a Troy ounce. A small piece of jewelry usually weighs about 3 grams.

Determine the karat or percentage of your gold. Look on the inside of rings or bracelets with a strong magnifier or a loupe to see the gold marks or markings. Pure gold is 24k, but is too soft for jewelry. 18k gold is .750 and 14k gold is .583. 10k gold is .417. Group your gold items by karat.

If you do not have an accurate gram scale, take your jewelry to a pawn shop and ask them how much they will give you for it. The first thing they do is weigh the items. Write down the weight in grams, and the offer. Try another pawn shop if you want, but do not sell your gold yet.

Calculate the actual value of your items. If you have 3.2 grams of gold that is 24k, and gold is $1,820 an ounce, the actual value is $187.26.

Consider this: 31.1 grams equal an ounce of gold, so at $1,820 an ounce a gram of 24k gold is $58.52, but

58.52 x .583 = 34.12 x 3.2 = 109.17.

If you have 3.2 grams of 14k gold, with the value of gold at $1,820 an ounce, your gold is valued at $109.17.

$58.52 a gram x .417 or 10k = $24.40 x 3.2 grams = $78.08

3.2 grams of 10k gold is $78.08 when gold is $1,820 an ounce.

You will not receive full price for your gold, but you can expect to receive 75 percent of actual value. Multiply the price by .75 to determine what you can expect to receive. $78.08 x .75 is $58.56.

Calculate 3.2 grams of 18k gold at $1,820 an ounce. At this price, a gram of gold is still the same or $58.52 a gram. 18k gold is .750 or $43.89 a gram x 3.2 or $140.45. You should receive about 75 percent of full price or $105.34.

Once you know the value of your gold, shop around and sell it locally if you can. Do not give in to sales tactics, and sell to the shop that pays cash on the spot. If you have jewelry with stones, make certain to find out if the stones are valuable before you sell the jewelry for scrap gold value.

Be a smart consumer by educating yourself about your gold jewelry before you sell it.

Our "Retirement Living Guide for Senior Citizens" can help you handle your money and be a wise consumer. You can read part of it for free at this website:

http://www.smashwords.com/books/view/77302

See you again soon!

Linda
cajunC