P3 Interview - Weathering the Recession!

POWER, PASSION and PURPOSE!

Listen to the Financially Savvy Sista discuss ways to manage your finances with Lisa Thomas.

http://www.thep3group.com/magazine

Enjoy!

What’s your Money Personality?

We all have strengths and weaknesses when it comes to money. A common determining factor that suggests how an individual effectively someone saves and spends is their personality…their approach to money matters!

The Accountant
Money means security to you, so you take it very seriously. Balancing your books to the penny, never spending impulsively, and saving religiously – sometimes even to the point of hoarding.

The Giver
Money transcends into affection for you, and you lavish it on the causes and people you care about. While you might have a “Save the World” t-shirt or “Save the Animals” bumper sticker, you don’t save a dime for yourself.

The Manager
Money = Success. Having the right clothes, car, house, and taking the best vacations are essential, whether you can afford them are not. More often than not you find yourself juggling finds from one account t to another to cover the cost of your new iPhone!

The Entertainer
Your esteem is measured by the amount of money you have. You always host gatherings and pick up the tab for your friends. Being Ms. Bountiful means more to you than being Ms. Practical.

Can you identify with any of the above personalities?

I am sure that we all can. The key is to find a balance between your personality type and practical financial management techniques. This means getting a hold on your budget, spending habits, and debt.

Start by taking into account your monthly expenses.

The Financially Savvy Sista is back!

That’s right; I’m back and sharing financial knowledge like never before. After a very relaxing hiatus from writing, it feels good to be back.

Happy Labor Day!

All labor that uplifts humanity has dignity and importance and should be undertaken with painstaking excellence.

-Martin Luther King Jr.

Happy Labor Day!

How to Organize your Financial Records

The dilemma of deciding which financial records to toss or keep can seem daunting at first, but it is an important step in financial management. As the income tax deadline vastly approaches, cataloging your documents will make it easier when you decide to file your taxes, revise (or develop) you budget, or you need to present them to a financial advisor.

Here are a few tips to help you organize your records:

HOME IMPROVEMENT RECORDS
Keep all receipts, estimates, and appraisal documents for the length of time that you own the property. When you sell your property or attempt to refinance your home, these records can be used to justify the increase of value in your property.

BANK STATEMENTS
Keep your monthly statements for at least three years. If you view your bank statements online, check with you banking institution for the process to request past bank statements.

SMALL BUSINESS RECORDS (including home based businesses)
Keep all financial records for at least seven years. This includes bank statements, tax returns, documentation of asset purchase and sales, company donations (given or received), and company expenses.

TAX RETURNS
Save your tax returns, including supporting documentation, in chronological order for the last six years. Visit www.irs.gov for the Taxpayer Resource Guide which gives more details about how to organize your tax returns.

INVESTMENT STATEMENTS
You must pay taxes on all profits from your investment accounts. This includes retirement accounts, mutual funds, stocks, or bonds. Your investment institution will provide you with monthly/quarterly statements and end-of-year reports. Keep these records for at least three years.

Organizing Tips…

- Scan your financial documentation and file them electronically.

- Use a colored coded system to separate your files. (yellow folders are for taxes, red folders re bank statements, and so on)

- Invest in a safe deposit box

Happy Organizing!

President Obama's Economic Stimulus Plan

Last week I witnessed the most amazing thing - the Inauguration of the 44th President of the United States. This event, inspired by hope and perseverance, was breathtaking and monumental. We walked for miles, talking to any stranger who would listen. With over 2 million people, finding a place to stand was like picking up broken glass out of mud! Nevertheless, we toiled the winter weather and the massive crowd….all to hear President Obama accept his Oath to Office.

Now, a week later, President Obama has pitched and won his first legislative victory. He has crafted an economic stimulus plan that may actually boost the economy. Here’s the skinny on the plan and how this “change will work for you:

Yesterday, the House of Representatives have passed Obama's Stimulus Plan, which will cost approximately $819 billion dollars. These dollars will be (primarily) spent on education reform, boosting the automobile industry by increasing the demand for cars – government cars, and individual tax cuts. According to President Obama, "This recovery plan will save or create more than three million new jobs over the next few years”. His tax cuts call for a $500 break for single workers and $1,000 for couples, including those who don't earn enough to owe federal income taxes.

The House of Representatives have passed this measure, now off to the Senate.

And just think, this is only the first part of Obama’s stimulus package to boost our economy……….ooooh, I am excited!

Get Ready...Set...Go! It’s TAX SEASON!

If you haven’t already received your W2’s, you will soon. Your employer has until the end of January to get them to you, so get ready. Once you have received them, you have until April 15 to get them to the IRS.

Although April seems far away……it’s not! Here are a couple of things to remember when you file your taxes:

Find and organize your records:

Not only will you receive a W2 from your employer, but you may also receive the following forms (abbreviated list of most common forms):

- W2G – Report of Gambling Winnings
- 1099 INT – Report of Interest Income
- 1099 DIV – Report of Dividend Income
- 1099-MISC – Miscellaneous Income
- 1099 C – Cancellation of Debt
- 1099 G – Government Payments

If you're expecting to receive any of the forms mentioned above and have not received them by the end of January, contact your reporting institution because it may be an oversight. Also, remember to read your W2 carefully - Check to make sure that your social security number is correct.

To report your earnings to the IRS you will use either form 1040EZ, 1040A, or the standard 1040.

Decide how you will file:

Will you submit an e-file or a paper file? Will you seek out the services of a tax professional? This decision is based solely on preference. Luckily, the IRS has designed the filing process so that the average person can file a basic tax return with ease.

With the immense amount of foreclosures, lay-offs, and overall financial distress this tax season can be a very stressful time for many people. It can be frustrating trying to understand complex tax codes, deductions and earned income credit. Don’t become intimidated by your taxes….instead, get a head start and seek advice. Ignoring your taxes can be a tempting solution, but it is never the right answer!

Visit www.irs.gov to get your tax forms and instructions.