When Does Bankruptcy Make Sense?

When Does Bankruptcy Make Sense?

by | Mar 23, 2013

Have you ever thought of bankruptcy? It can be confusing and if you have thought of it you may feel embarrassed or afraid to make the call.

Sometimes you need a fresh start, especially after getting a divorce. That legal process can wreak havoc on your financial life.

For a little help in deciding if this is the right move for you take a look at the infographic below. It may give you some clarity.

When Bankruptcy Makes Sense

Created by Doan Law.
10 Surprising Tax Tips to Make Tax Time a Breeze

10 Surprising Tax Tips to Make Tax Time a Breeze

by | Mar 21, 2013

Tax return check

By Vladimir Nardin, Opinion Corp.

With the tax-filing deadline looming, here are ten tips to help make this year’s filing a breeze.

1. Lost your job? Could be good news!  You might quality for the Earned Income Tax Credit.  And since unemployment benefits do not count towards eligibility, only take your regular wages into account.  For a single, childless taxpayer, you need to make less than $13,980, with two children you qualify with less than $41,952.

2. Report it all! If you did receive unemployment benefits, including disability payments or assistance that falls under the Disaster Relief and Emergency Assistance Act, you should have a Form 1099-G to report your income.

3. Last call for the American Opportunity. The American Opportunity Tax Credit, which was introduced in the 2009 stimulus bill, was extended through 2012.  This means a credit of up to $2,500 of the cost of eligible education expenses, and up to $1,000 of this credit could come back to a taxpayer as a refund.

4. Pay attention to form 1099-K. This new form records payments received through third party networks like credit card companies or PayPal.  The form was introduced for 2011 over concerns that small businesses were not reporting all of their income.  Now that the IRS has access to credit card or online payments, this form ensures that parties keep it honest.

5. Gift fiving is good. In 2011 the estate tax was resurrected and the unified gift tax as well.  This means that you can give away $5 million in your lifetime without suffering the 35% gift tax.  Also, giving to charities can help to reduce your annual tax bill.

6. Only hire a pro. If you hire someone to prepare your taxes, ask him or her about their IRS registration status and verify it is in good standing.  Tax return preparers must fine their PTIN (Preparer Tax Identification Number) with each submission, and over time the IRS has made tax preparers more accountable to the numbers and their filings.  It has been proposed that they will need to prepare proposals with their fingerprints, and as of this year, pass competency exams.

7. Accelerate income. The top income tax bracket in 2012 is 35% of annual taxable income.  This could jump to 39.6% in 2013, so if you are in the top tax bracket, you may wish to opt to accelerate income into 2012 and pay taxes at a lower rate.

8. Don’t overpay tax prep. Check out this tax preparation cost comparison on NerdWallet.com and compare the benefits of using Turbotax vs. H&R Block to do your taxes.

9. Choose the right form. The 1040EZ offers only the Earned Income Tax Credit, while the longer 1040 offers education and other credits.

10. Always file an extension. If you simply can’t complete and fine on time, file for that extension to avoid penalties and interest.

How to Cope With it All as a Working Single Mom?

How to Cope With it All as a Working Single Mom?

by | Mar 20, 2013

Busy Single Mom SolutionsMy first word of advice is to stop trying to do it all. Yes it’s easier said than done so here is a more realistic piece of advice.

Delegate.

Maybe that’s not realistic either so here is my final word on how to cope it all as a working single mom.

Let it go.

Delegate Everything to Give Others a Chance to Help You Cope

That’s what I do. I delegate tasks to my kids, my friends, my family, or anyone who I feel can and is willing to help or I simply let it go. The world will not end and I won’t get labeled the worst mom in the world if I don’t do it all.

My kids are older now so I can delegate the task of cleaning their room, the living room, the kitchen, the car; ok basically the entire house. When they were younger I felt like a terrible mom if I didn’t do everything and the house wasn’t spic and span.

I felt guilty and depressed because my house often looked like a hurricane hit it. But I was working and going to school full-time; trying to study and take care of my small children. My mom made me feel guilty whenever she visited and I did my best to try to please her and meet her standard.

Let It go to Save your Sanity

Finally, I let it go and let myself off the hook. I gave up trying to be super mom. I let the dishes and vacuuming go until I had the time (and energy) to do it.

If I had the money at the time I would have hired someone to come in and clean for me. These days if you can catch a good Living Social or Groupon deal, you might find a cleaning service for $25. I say treat yourself to it and relax your mind.

Be Selfish with Your Time and Limit Kid Activities

Another way to cope with it all is to forget about putting your kid in every sports, dance, or art activity. Those things will eat up your time. Decide if you want them in an activity and if so choose one thing per child and alternate seasons. If you have two children choose on activity and rotate every three months or so. This way you only have to get one child to one activity after school or on the weekend. You don’t get overwhelmed and you free up time to re-energize in the evenings and on the weekend.

A Single Mom Sanity Saver Case Study

A single mom friend of mine is in school, working, active in church, taking care of four kids and was burning out. She felt guilty that she wasn’t spending time with the kids and couldn’t help them with homework and get her homework done.

Homework Help Solutions

I encouraged her to do her homework with the kids so she could be available to help them. She would be setting a good example for them by diligently doing her homework. It was also a way to spend time with them too.

To Cook or Not to Cook

I advised her to stop trying to cook full meals each night. It is okay to have quick meals of breakfast for dinner, burgers or hotdogs with chips, or a bowl of cereal occasionally.

Getting a Nap to Energize Your Life

To get extra sleep, I encouraged her to nap on the sofa while the kids watched a movie a couple days a week. She could let them know in advance that she might fall asleep while watching the movie because she needed a little extra rest. This teaches kids respect and compassion as well as how to take care of their bodies. She would be present for the kids while taking care of herself.

Being responsible for doing it all is challenging and even overwhelming. But managing your life by adopting new ways of thinking and doing things can tame your runaway life.

The Most Important Skill You Can Learn Today to Raise Your Income by 50% (or more)

The Most Important Skill You Can Learn Today to Raise Your Income by 50% (or more)

by | Mar 12, 2013

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Learn to code. Learn to read and write code. Learn to use this medium to be creative. Increase your income. Be extraordinary.

I have been in IT or information technology for about 20 years. I started out in high school with a DOS-based computer learning how to type. I learned basic office application software at that time and was hooked on all things computers.

Maybe the reason I excelled is because I was not intimidated by this new technology. I was always the first one to tackle a new software program at my jobs. I created the first database for the county boat registration process where I worked, using a new software program. My manager had it installed and told me to learn it and create the database. It helped that I learned how to do it in college even after I had a C-average in my college classes, so you don’t have to be an A student, just be willing to take what you learned and apply it to a new project.

From those humble days in front of a green or orange on black computer screen to today where I am an IT consultant, my income has steadily increased. I can take care of my family. I can take vacations. I don’t have to rely on child support or be frustrated if it doesn’t arrive on time (or fail to come). I’ve been able to use my skills to earn a great salary and I’ll earn much more in the next two years because I am learning how to code mobile apps.

A Woman Who Can Code Can Write Her Own Paycheck

Show me a woman who can code or at minimum manipulate more advanced computer programs and I’ll show you a woman who can write her own paycheck.

Why am I such a huge advocate for coding and learning about technology? Because it’s the future and the future is now.

The Mistake Single Moms (and Most Financially Struggling Women) Make

I hear single moms talk about struggling to pay bills, buy food and clothes for their kids, desire a better neighborhood to raise their kids in but they don’t know how. They are stuck in low paying jobs, barely reaching lower middle class status. They have to get second jobs and struggle to find child care.

The sad part is most are clueless about how to get to the next level financially. Going back to school to become a nurse or secretary is just jumping from one misery to another unless you truly love taking care of the sick or being someone’s whipping girl.

The Reason Programmers and Computer Professionals Don’t Struggle Financially

Programmers and high tech people don’t struggle like this, because what they do is crucial to the world. If your job is crucial to the world you get paid well.

The Key to Raising Your Salary and Quality of Life

The key to raising your quality of life and salary is to get into some field of information technology. The time in school can be less than 18 months and you can come out with a certification that will command $50k at a minimum.

As a single mom you cannot always find a job you love or follow your bliss. Bliss won’t feed the kids unless you are an extraordinary marketer and can sale your dream.

How to Make Learning a Computer Programming Language or Specialized Software Worthwhile

But you can learn a computer program or become an expert at manipulating advanced computer systems. You can couple your passion for healthcare with health IT. You can marry your love of children and learn how to write software programs for kids. There are hundreds of ways to use programming with the things you love to do.

Start Small and Simple

So what are you waiting for? What is your excuse for not making a decision to learn how to code or learn complex computer software? Think your brain can’t handle it? Think it’s boring? You will never know until you try it!

To get you started visit Code.org to learn how to create a simple, but fun program. It can be a web-based program, a web page, or an app. Start small, read as much as you can, try it out and don’t be afraid to break something. You can’t possibly bring down an entire computer system because you are not a computer genius yet Winking smile.

Single Mom Support Call

Single Mom Support Call

by | Mar 7, 2013

Ask RichSingleMommaLast week there were about ten single moms on a the Ask RichSingle Momma Anything single mom support call. I had a great time talking with all of them and answering their questions.

The thing about being a single mom is there is this sense of isolation and feeling that no one understands. I’ve had many days like this where if I could just talk to someone who understood I would feel so much better. That is why I am doing these calls. We need someone to talk to about the challenges we face everyday.

The call focused mostly on financial issues but it also covered how to get through life successfully. You can check out the RichSingleMomma Facebook Page to find out everything we talked about.

Here is a video clip I did early this week about the call.

Join us this Sunday and every Sunday for the Single Mom Support call at 9pm (EST). Here is the call-in information:

Dial-in – (218) 339-2500
Enter Access Code – 1032131#

If you are unable to join the call a recording will be available later.