Sale!

You may have heard advice to stay in stocks during a recession. Obviously if the stocks have temporarily fallen in price, you don't want to get out right now. That's called buy high and sell low. Bad idea. Now is the time to invest more (assuming you're not close to retirement) while stocks are undervalued. I read an article recently saying to look at it this way: The stock market is on sale!!

Who can't pass up a good bargain sale?

Free Tax Answers

Yep, I'm still excited about taxes. I am stalking the mail truck waiting for my W2's to get here.

In the meantime, the analysts at Kiplinger's are providing some free tax advice. You can call in or join the discussion online on January 30th from 9 a.m. to 6 p.m. EST. They hosted one of these on the 13th, and you can read the transcript here.

Pear Budget

I'm trying a new paradigm in budgeting this year. I'm using someone else's spreadsheet. (gasp)

I know. But I came across the Pear Budget on the Get Rich Slowly finance blog a couple months ago. You can enter data online for a fee or download the spreadsheet. I was reluctant to abandon my 12-worksheet monstrosity, but the Pear spreadsheet was so pretty, I knew it was the work of someone who loves spreadsheets as much as I.

When I began designing my own masterpiece, I was working in the finance department of the local newspaper and had no children. I had all kinds of time for detailed records, trending charts, and analysis reports. 6 years and 3 children later, I've been finding it ever harder to find time for updating.

When I'm feverishly entering receipts twice a month, it gets difficult to keep details like 'light bulbs, batteries, new sippy cup' in the Housewares budget. And despite telling myself that I would need these details for analysis, I have yet to go back and do a breakout comparison of restaurants vs. babysitters in my Entertainment budget. As a matter of fact, the only details I have gone back for are tax deductible expenses (donations, tax preparation software, business expenses). Everything else just comes down to a final 'over budget/under budget' number.

So it is with trepidation that I leave behind my comforting minutiae and test drive a new spreadsheet. I can always go back...

It's the Most Wonderful Time of the Year

No, not that time. I'm not that far behind on my blogging posts. It's Tax Time. Laaaaaaa!

This is the time of year when spreadsheet aficionados everywhere fill in the last numbers for the year and prepare to count the returns. Just the thought of those lovely tax credits warm my cold little accounting heart.

Here are a few tax tricks for anyone who may be a little less thrilled when they see those beautiful white envelopes bearing W2 forms.

• The TurboTax people are offering free answers to tax questions in January. The questions have to be related to the 1040 tax form or a few business forms. They only answer federal - not state - tax questions. And you can only submit one question per customer. Enter your question at www.freetaxquestion.com and a tax expert will call you back with an answer!
• You can still make tax-deductible contributions for 2008 to your Traditional IRA up to April 15th. The annual limit for 2008 was $5000. If you were good little bunnies in 2008, you can start putting in your contribution for 2009! The 2009 limit is still $5000 for the year or $416.66 per month.
• The IRS has some help for those affected by economic downturn. Check out the site for some What If scenarios.
• Start gathering your records now.
  
• Double check your forms (The IRS says that mistakes on Social Security numbers and math errors are the most common mistakes taxpayers make).
  
• Efile your return - the online forms will alert you to those math errors.
• Get refunds by direct deposit in your bank account. Much faster than waiting for a check in the mail!
• File early. Don't wait until April. If you have someone else prepare your taxes, they'll be swamped the whole month. If you file for yourself, it will take much longer to get your return.
• Try not to rub it in too much to those around you that you're already done. In February. And already counting your money.

I can't wait!!