Avoiding Impulse Spending

Gregory J Cook, EA, CPA

Gregory J. Cook, EA, CPA+
Accredited Tax Advisor

Past President Alabama Society of Enrolled Agents
Past President Alabama Association of Accountants

   



Answer these questions truthfully:


1. Does your spouse or partner complain that you spend too much money?

2. Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?

3. Do you have more shoes and clothes in your closet than you could ever possibly wear?

4. Do you own every new gadget before it has time to collect dust on a retailer’s shelf?

5. Do you buy things you didn’t know you wanted until you saw them on display in a store?

If you answered “yes” to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.

This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.

Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.

Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.

When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.

If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.

If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.

News and Articles from Bara Business Center

Greg Cook


Greg Cook on the Recovery Act ...


The Recovery Act was passed by Congress and signed into law by President Obama on February 17, 2009. The purpose of the $787 billion Recovery package is to jump-start the economy to create and save jobs. The Act specifies appropriations for a wide range of federal programs, and increases or extends certain benefits under Medicaid, unemployment compensation, and nutrition assistance programs. The legislation also reduces individual and corporate income tax collections (to an extent), and makes a variety of other changes to tax laws.

dollars

This Act will have far reaching consequences and we will be dealing with it for years to come (at least until 2018). Twenty-eight different agencies – such as the Departments of Education; Health and Human Services; and Energy – have been allocated a portion of the $787 billion in Recovery funds. Each agency develops specific plans for how it will spend its Recovery Act funds. The agencies then award grants and contracts to state governments or, in some cases, directly to schools, hospitals, contractors, or other organizations. The agencies are required to file weekly financial reports on how they are spending the money and their specific activities related to Recovery funds.


 Read more about The Recovery Act

Clary Business Machines, Inc.
 

    While Our Government Rolls the Dice with Deficit Spending ...

    dice


    We endeavor to bring information to you that will help you keep taxes and your personal finances in check.
     
button

Have You Refinanced Your Home?

If you are one of thousands who locked into a lower home mortgage interest rate, then you've hit the savings jackpot! Besides getting one of the lowest rates in decades, you may be able to deduct some of the refinancing costs when you file your tax return. The “points” paid to get a home mortgage may be deductible as mortgage interest when you itemize on Form 1040's Schedule A. Points paid to get an original home mortgage may be fully deductible in the year paid. However, points paid solely to refinance a home mortgage usually must be deducted over the life of the loan.  

For a refinanced mortgage, you figure the interest deduction by dividing the points paid by the number of payments you will make over the life of the loan. You may deduct points only for those payments made in the tax year. Say you paid $2,000 in points and you will make 360 payments on a 30-year mortgage. You could deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year. If you used part of the refinanced mortgage money to finance improvements to your home and if you meet certain other requirements, the points associated with the home improvements may be fully deductible in the year the points were paid.

Also, if you are refinancing a mortgage for a second time, the balance of points paid for the first refinanced mortgage may be fully deductible at pay off. Other closing costs – such as appraisal fees and other non-interest fees – generally are not deductible. And the amount of your adjusted gross income could affect the amount of deductions you can take. Any way you look at it, between the lower interest rates and the tax savings, that's money you can take to the bank. For more information on deductions related to refinancing, contact your Cook and Co. Advisor.

 

Financial Services Dept

 


Financial Articles

money

About Online Trading
Back Dated Stock Options
Begin Investing
Business Checkbook
Choosing a Broker
Common Mistakes
Foreign Bank Account
Investing Basics
IRA Beneficiary
Life Insurance
Long Term Care
Long Term Investments
My Financial Info
Oil and Gas
Passive Activities
Retirement Plans
Risk Tolerance
Self Directed IRA
Yield Curves




 
 
Investment Related

stock

Diversification
Dividend Safety
Equipment Leasing
How Much to Invest?
Investing for Retirement
Investing Mistakes
Investing Traps
Investment Strategy
Investment Style
Mutual Fund Averaging
Mutual Funds - The Basics
REITS
Rental Real Estate
Shareholder Rights
Types of Bonds
Types of Investments
Types of Mutual Funds
Types of Stock
Understanding Bonds
Wash Sale Rules
When to Sell
Where to Invest
 
Managing Credit
and Other

credit

Apply For A Credit Card
Bad Credit Mortgage
Before You Invest
Borrow or Cash-Out?
Check Your Credit
Compare Credit Cards
0 APR Credit Cards
Credit Card Relief
Credit Solutions
Debt Consolidation
Debt Consolidation
Early Pay-Off
Free Credit Report
Impulse Spending
Rewards Credit Cards
Spend Wisely
The Budget
Why Budget?


Bank Secrecy Act of 1970


banking

Bank Secrets Act
BSA an Introduction
BSA Compliance
BSA Penalties
BSA Registration
BSA Regulations
BSA SARS
Country Advisories
Currency Transactions
Government Acronyms
Money Laundering
Money Transfers
Suspicious Activity
Unusual Activities
What to look for