Everyone wants a cleaner environment but who’s willing to pay for it?
A Global Warming Tax?
I heard a blurb on NPR this morning that Americans think the biggest environmental problem we face is global warming. However, when asked if they’d be willing to pay higher taxes to improve the problem the majority of people said no.
The carbon dioxide produced from automobile and power plant emissions is a major contributor to the greenhouse effect. The radio report mentioned potentially taxing electricity and gasoline to help offset the effect of greenhouse gas created from coal burning power plants and gasoline burning automobiles.
What’s a Money Smart Solution?
We work so hard to earn and save money; anytime someone brings up a new tax my first reaction is, no way! I think I understand the reasoning behind the taxes:
- Use tax revenues to offset the negative impacts of greenhouse gases or find alternative energy options
- Raising the price of consumption would change habits & lower usage
These ideas are great in theory but would they really work? Would the government fund more anti-pollution measures and energy innovation? Would we use less gasoline or electricity? Or would the energy and pollution problem just remain the way it is with us consumers just paying more taxes?
The money grubber inside of me says keep your hands off my wallet but the nature lover says we have to try something. Would you be willing to pay “environment” taxes? If not, what’s a better solution?
I’ll never forget April 18th. No, not as the day the IRS extended the tax filing deadline, something much more memorable. I’ll always remember it as the day our little guy took his first crawl around the living room!
I’ve never been so proud of anyone before. I’ve never been so involved in such a huge step in someone’s life. I’m amazed at how much he’s grown and learned in the first ten months in this world. The process has been wonderful to watch and is a reminder that personal growth and success take time and persistence.
Our little boy didn’t start crawling the day he was born. It took him almost ten months to figure it out. He won’t start walking tomorrow and he won’t be running the day after he walks. Everything in life is a process and achievements are built one step at a time, typically on top of a previous success or lesson learned.
Taking the First Step
Your goal may just be to get a solid grip on your finances or it may as lofty as becoming independently wealthy. Whatever it is, the only way to get there is by attempting that first “crawl”.
Start with the basics of learning to budget your money. Once you know how much you have and where you’re spending you money make a plan to pay off any debts you have, especially credit card debt. The Simple Dollar has a great series called 31 Days To Fix Your Finances that can help you get on track.
Dave Ramsey has a multi-stage program he calls the Debt Snowball that people can use to help pay off their debt. He emphasizes that you shouldn’t move on to a new stage until you’ve achieved the goals of the stage you’re in. This applies not only to debt reduction but most financial concepts. Once you’ve learned to “crawl”, you can start learning to walk.
Start learning the basics of how to invest your money. Smart Money magazine provides a great online resource for beginning investors called Smart Money University. You can start off by investing in a mutual fund in your IRA, 401k, or 403b.
You might want work with a fee-only certified financial planner to help you build a financial plan for your future and advise you on what investments to get started with to meet those goals.
Some people never really move onto the running stage. Let’s face it, life is busy and you might not want to spend any more time or energy than you already have on your finances. This is perfectly fine. Once you have a good financial base and plan setup, as long as you are consistent you should do just fine. As they say, slow and steady wins the race.
However, some people want to learn more about finances and become active investors. If you have the urge to run, the first thing I’d advise is reading the Intelligent Investor by Benjamin Graham to learn the difference between an investor and a speculator. Then I’d go through the series, 30 Days to Becoming a Better Investor. Being an active investor can pay off but attempting it without knowledge and discipline could lose you a lot of money.
Our little guy tried night after night to crawl and finally figured it out. Don’t get discouraged when things don’t make sense or don’t go according to plan. Keep learning and using what you’ve learned and you’ll make progress as well.
Don’t expect yourself to start rolling in the dough right away. Even moguls like Warren Buffett had to crawl and walk in the world of finance before they could run with the big dogs. If a few months old baby has the fortitude to keep trying and learning don’t you think we can do the same?
Did it hurt to do your taxes this year? Was it painful to write that check? Was it a hassle to wade through a sea of receipts? Aren’t you glad its over until next year? Well it’s not!
Taxes Year Round
Although we only have to file once a year, we’re paying taxes almost every day of our life. The Tax Foundation actually calculates how many days the average person in the US spends working for the first few months of the year just to pay their taxes. This year Tax Freedom Day is on April 30th. Can you believe if you spent every dollar you earned on paying taxes it would take from January 1st – April 30th to pay the off in 2007? So contrary to the title of this post, the 2007 tax season doesn’t start today, it began on January 1st.
As I dropped my return in the mail last night I heard a man comment, “thank goodness I’m done with taxes for another year.” I used to feel the same way. I didn’t know much about the tax law, I just paid whatever TurboTax said I owed every April.
Over the last year I’ve learned that if you know the tax rules there are many things you can do throughout the year to help ease and manage your tax burden. Unfortunately the tax code is immense and overwhelming. It’s so complicated that companies and individuals pay tax lawyers and accountants big bucks to help them decipher how it best applies to them. Despite this complexity, I’ve decided to take on the task of learning more about the tax rules.
Lower Your Taxes
A common saying states that “knowledge is power”. In the case of taxes, understanding the tax rules can give you the power to reduce the taxes you owe. Tax expert Sandy Botkin phrases it well when he says, “The more you know, the less you owe!”.
I’ve started listening to Sandy’s audio series Tax Strategies for Business Professionals on the drive to and from work and as I pickup tax tidbits I’ll share them with you here. It’s a long term project; it will take me at least a year to see the benefits of what I learn. However, many of the things I learn one year should carry over to following years so using the title of Sandy’s book; eventually I’ll be able to lower my taxes big time!
Everyone makes mistakes. Sometimes the way you handle your mistake can actually turn it into an opportunity.
Due to bad listening on my part, I’ve spent the majority of the last two days at work, fun fun. My boss made a commitment to our Vice President of Technology and asked me to make sure it was carried out. I misunderstood the timeline so when my bosses boss came looking for status on Monday morning it was panic time.
Everyone from my boss on up to the Vice President were expecting a deliverable that could save or cost the company hundreds of thousands of dollars. The bad news is that it wouldn’t be done on time and it was fault. Rather than dodge responsibility for the issue, which seemed tempting at first, I acknowledged my error and set to correcting it. Now after two days of long hours and hard work it appears the project will be a success. Although I was the cause for the delay, my handling of the situation proved my ability and dedication to my boss and his managers.
As we all know, everyone makes mistakes. If you can learn from those mistakes then you’ll be better off. A great illustration of this is the young businessman who blew a $100,000 dollar deal with a client. As they left the meeting the dejected businessman asked his boss, “Sir, are you going to fire me for losing that client?”. His boss gave him a funny look and said “Are you crazy? I just spent $100K training you, why would I fire you now? You’ll nail the next one, if not, then you’re fired.” We all make mistakes, how we handle and learn from them determines how others will reward or punish us for them.
In an ironic twist my boss called me today with some exciting news. I saw his number on my phone and thought it was more bad news about the project. However, when I answered it was a different type of news altogether. The promotion I’d been waiting on had come through!
Hopefully this shows the promotion advice I’ve given has some merit. Unfortunately promotions typically require a good deal of hard work to come by. Turning your mistakes into opportunities can help speed up the process of getting promoted. Just don’t make too many mistakes
I spent most of this weekend organizing the “store” in our garage and realized there is a cost to being disorganized. I ran across some seasonal items I had purchased to resell on eBay but missed the boat because I forgot they were there!
The good news is I’ve made a lot of progress so I shouldn’t run into that problem again. The bad news is I’m still not finished so the garage is a mess and both our cars are still parked outside in the cold. I’ll get it knocked out this week; it sure will be nice to have an organized space to work in. Due to my organizing I haven’t been as up on the personal finance articles as normal but here are the ones that I did notice.
Clever Dude tells us to take advantage of hindsight as he reviews his money mistakes.
Matt @ Binary Dollar reminds us that watching Warren Buffett can give some investing ideas.
Flexo at Consumerism Commentary asks the provoking question whether high schools should require money management classes.
Golbguru assures us there really are smart people that know nothing about personal finance. Sad but true, hopefully his conversations with them will spark their interest in money matters.
JD has a good discussion of how much we should give.
SVB points out that real estate prices are out of control in some parts of the country.
Congratulations to Trent @ The Simple Dollar who is expecting a child in September. He talks about the financial & lifestyle choices that a new child bring.
Lazy asks whether your home is an asset or liability.
Another great post in the series on financial troubles over at Gen X Finance tells us we may be in financial trouble if we’re only making the minimum payment on our credit card.
Wisegeek asks what if we could decide where our tax dollars were spent with personal tax earmarking.
I have someone’s money and they won’t return my emails, what should I do? This is a problem I’ve never experienced before and am looking for ideas on how to handle it.
I sold an item to a lady on eBay back on April 3rd. She paid the $100 for the purchase and postage right away through PayPal. I went to ship the item and the Postal Service informed me she had provided an address with an incorrect zip code. I’ve contacted the woman 4 times through eBay asking for a correct address but she has not responded to any of my inquires.
I talked with eBay today about the problem and they won’t contact a customer on behalf of a seller. They did give me her phone number, however, when I call the number is no longer in service.
What Should I Do?
I have a phone number that doesn’t work, an email address that isn’t responded to, and a postal address that may wrong. The part that makes it more complicated is I also have her money.
1) Wait for a Response
I’m hesitant to just wait this one out. The woman only has a feedback rating of 2 so she’s not an experienced eBay user. If she is waiting on the item and doesn’t receive it, she might think I ripped her off and leave me negative feedback. In case you’re not an eBay user, keeping my 100% positive feedback is key to continuing sales.
2) Ship the Item
I’m also apprehensive about sending the item to an address that may be incorrect. It could get lost in the mail or returned to me. Either way, I’ll be out money by losing the item or having to eat the extra shipping costs.
3) Refund her Money
I had this item for sale for quite some time before it sold so I’m reluctant to refund her money and start over again. I purchased it for $10 and sold it for $90 so it’s a sale that I’d really like to close out. This may be what I have to end up doing but I’d like to avoid it if possible.
Thanks in Advance
Any ideas would be appreciated, Thanks!
Money concepts can be confusing and overwhelming. There are many things I don’t understand about the world of finance; you could say I see it as a big puzzle.
What are Blue Chips?
Every day on the drive home I used to hear newscasters announce the Dow was up or blue chips were down. I knew up was good and down was bad but I had no idea what the Dow was or what kind of company was classified as a “blue chip” stock. Finally I got tired of not knowing what they were talking about and did a few minutes of research on the Web. As I discovered the meaning behind a blue chip stock and the Dow Jones Industrial Average a small piece of the big money puzzle fell into place.
The nice thing about looking at money as a puzzle is that you don’t expect yourself to know it all. If you come across something you don’t understand just realize it’s just a missing piece. You’ll figure it out and over time the “financial picture” will become a little clearer.
The Finished Masterpiece
When you start a puzzle what’s the first thing you do? Put the picture on puzzle box where you can see it so you know what the end result should be. I think the same applies with your money puzzle. If you can visualize what your long term goals are, i.e. the finished masterpiece, then it makes it much easier to put your money puzzle together.
Your Money Puzzle
We all have a different vision of what we want our finished puzzle to look like and we all go about solving the puzzle a different way. If we can visualize the end result and realize that the progress will be gradual rather than immediate, it will motivate us to learn about money and keep us from getting discouraged or overwhelmed. What tricks have helped you overcome frustration and confusiong while putting together your money puzzle?
Have you ever been given money simply for trying something out? I just experienced this last weekend and it’s pretty neat!
New Bank in Town
Marshall & Ilsley Bank opened a new branch in our neighborhood and is looking for new customers. They sent me a flyer in the mail, offering $75 if I’d stop into their bank and open an account.
The whole process took less than an hour and now the bank is going to deposit the money in my account in two weeks. Literally, all I did was sit in a comfy chair for less than 60 minutes and answer a few questions to earn $75. I typically sit in a chair all day long and answer hard questions at work and I’ve never earned $75 an hour! But wait, it gets even better.
Free Credit Report
The bank ran a credit report with TransUnion as part of the new account process. I hadn’t seen mine in quite some time so I asked for a copy of it. The banker said they weren’t allowed to give me the credit report; however, she would let me look it over while I was there. What’s better than a free credit report? Finding out your credit score is sitting pretty sweet at 780.
I’m always skeptical when someone offers something for “free”. However, sometimes it does pay off to investigate a little further. Had I trashed the flyer as I often do for mailers like those, I wouldn’t have made an easy $75 or gotten a free credit report!
Ask six different people for personal finance advice and you’re likely to get six different answers. Sun recently asked several other personal finance writers and his readers their opinion on a reader’s money question and experienced this first hand.
The Good News
A simple question like “what should my mom do with $1100″ received recommendations for investing, creating emergency funds, buying long term care insurance, and paying off a mortgage. The good news is you always have many options on how to use your money.
The Bad News
The bad news is that after hearing everyone else give you options, now you still have to decide what is best for you. Often personal finance questions are answered with words like assumption, phrases like “it depends”, and the closing disclaimer of “consult a financial professional”. Basically every situation is different, so it’s up to you to take their advice tailor it to you personal circumstances. Hence “personal” finance.
The Money Conversation
The inevitable result of one money question is another money question. Typically followed by another, and then another. We see this in action, as Sun posed a follow up money question to the reader for more background on their situation. Sometimes the conversation is between you and a spouse. Sometimes you’re talking with a co-worker or financial planner. Other times, you may simply debate what to do with yourself, playing one scenario against another.
Being Money Smart
These money conversations are why it’s important to understand or learn financial concepts. Being money literate will allow you to evaluate all of your options and make the decision that is best for you. Notice I didn’t say “right for you” because there are so many different factors and unknowns it is hard to ever say what is “right”. In my opinion, all you can do is make the choice that seems best given the information at hand.
Making Financial Decisions
So the good news is we have options but the bad news is that it’s ultimately up to us to decide which road to take. Of course, it’s really not bad news, just a little overwhelming sometimes. After hearing everyone else’s opinion, how do you go about making tough personal finance decisions?
Welcome readers, I hope you are feeling ethical and full of values today! If not, you’re in the right place at the right time. The articles below will hopefully give you some food for thought about money and it’s place in your life.
The first half of the articles deal with the ethics and values of personal finance in one way or another. I’ve included a quote from each post to give you a taste of it’s content. The second half of articles consist of interesting posts, not necessarily having to do with ethics or values in my opinion, that you might want to check out if you have time.
Ethics & Values
Wanda presents Why give? (Or, what if you derive no utility from giving?) posted at Well Heeled.
“If giving DOESN’T make you feel better, if you feel NO sense of obligation to people outside your family or community, if you are financially successful and appreciative of what you have WITHOUT giving, if you don’t have a religious reason for being charitable, why would you give?”
Tracy Coenen presents Investigation of Usana points out the problems with MLM posted at FRAUDfiles.
“However, the vast majority of Usana’s “sales” are achieved only thru the marketing of the “business opportunity.” That is, without the promise of riches, the vast majority of distributors would never purchase any Usana products. “
Tim Abbott presents Berkshares: Local Currency Strengthens Community and the Bottom Line posted at Walking the Berkshires.
“Berkshares represent a community reinvesting in itself, rediscovering its history and revitalizing its economic and social prospects through the use of local script.”
“… we ponder if pay for performance is a child appropriate reward system.”
“Affirmative action is holding back minorities much like wealthy parents who give their adult children financial outpatient care”
Henry presents Investing in Life Insurance Policies: How the Grim Reaper Can Make a Ton of Cash. posted at Binary Dollar!.
“The investor buys the policy and continues to pay the premiums until their old person kicks the bucket.”
“Changing our attitudes toward money can change our lives by making us more open to wealth. Money is not a four-letter word – so use it!”
“Money is the root of all evil, I think a much more accurate statement is that the lack of money is the root of all evil”
“It’s all a matter of perspective – and summoning up the ability to toss aside the guilt and anxiety and simply take one small, successful step after another.”
“Earning a living is hard work; not spending it all is even harder. The root of all evil is not money, but greed.”
Mr Credit Card presents Did Funky Diner Deserve Any Extra Credit Card Tips? posted at Ask Mr Credit Card’s Blog.
“Would you have even gave any extra tip at all?”
“… an increasing likelihood that some lawyers may be practicing in less than ideal conditions for their clients, beyond a reasonable ‘brain age’.”
“In effect, the idea would turn lawyers into auditors. The would have to be independent, sceptical and their first duty would be to investors.”
Samuel Peery presents Applying GTD principles to your personal finances – Part 1 posted at Getting Finances Done.
Steve Faber presents - How to Save Money Everyday – A Different Perspective posted at DebtBlog.
FIRE Getters presents Experiences – Availability of Funds After Cashing a Big Check posted at FIRE Finance.
Thanks for reading! You can submit your article to the next edition of Ethics, Values & Personal Finance using this carnival submission form. Have an ethical day