Wise Bread (Kate Luther)

Forgiven Debt Isn't Really Forgiven At All

Kate Luther — Tue, 22 Sep 2009 13:00:09 +0000

If you've been struggling with the rest of the economy, chances are you've been forced to rethink your financial priorities. And as a result, credit cards are often the first thing to go.

The good news is that once you get behind, many credit card companies will offer to "settle" your account, some for as much as just 40% of your original balance. And if you're looking at a large chunk of credit card debt, making it go away for 40% of its value sounds like a pretty good deal.

But before you write that check, there's a little detail you need to know: in many cases, credit card companies can report that unpaid amount to the IRS and – this is the kicker – you'll have to declare it as income.

Wait a minute, you're saying. We made a deal. I settled that account and I even have a letter from my credit card company saying it was "settled in full." I shouldn't have to pay anything else.

And to that extent, you're right... you don't have to pay anything else... at least not to the credit card company.

But using the same laws that allow the IRS to tax you on gifts and prizes, if the unpaid portion is more than $600, the IRS considers it to be income and that income is reported on a Cancellation of Debt Form 1099-C.

That means that while your debt with the credit card company has been satisfied, you may stil have to pay Uncle Sam for getting such a great deal.

For example, let's say you had a $2,000 debt that you settled for 40% or $800. Your unpaid balance – the amount the credit card company agreed to "forgive" – would then be $1200.

At the end of the year (or whenever they do their reporting), the credit card company would report that amount to the IRS as a "forgiven debt" and send you a 1099-C to file with your individual tax return.

Now, whether or not you'll actually pay taxes on that amount will of course, depend upon your individual situation and the amount of debt being forgiven.

For most, a $600 increase in income isn't going to make a big difference in your taxable income but a bump of several thousand dollars just might. And if you consider that the average household has just under $10,000 in credit card debt and access to almost $20,000, it's not hard to see where a generous "settlement" offer might be considered during hard times.

Fail to report this amount and you could set yourself up for an audit.

This rule does not apply to certain types of debts such as those resulting from VA benefits, qualified farm debt, debts canceled in bankruptcy. It also is not applicable to debts that have been charged off so if your credit card company has sold the debt to a collector and written it off as a "bad debt," they cannot report the debt as "forgiven" on a 1099-C.

So, what can you do?

While it's tempting to cut a deal with credit card companies, you may end up paying more than you bargained for. In addition, even though the credit card company notes that the account was "settled in full," that is not the same thing as "paid in full" and the difference will be noted on your credit report.

There are however, some alternatives. Most credit card companies would desperately prefer for you to get back on your feet and pay your bills so many are offering various payment programs to help you manage your debt while times are tough.

Also remember that a credit card company will hold your account for at least six months before writing it off so if you're only a few months behind, you may still be able to avoid the collection agencies.

Another option is to enlist the help of a consumer credit counseling agency. However, before you sign up, make sure the agency is reputable and be sure you understand how participating in the program will affect your credit.

It might take a little extra work on your part to get out from under your debt, but at least you won't have to pay Uncle Sam any more at the end of the year.

Permalink | 11 comments | Kate Luther's blog | Channel: Credit Cards, Taxes

Similar entries:

This article is from Wise Bread.

The Secret Really Does Have A Secret (or Ten Tenets for Arranging Your Rich - Part 3)

Kate Luther — Tue, 23 Jun 2009 06:47:05 +0000

By Kate Luther

There's been a ton of debate over whether or not The Secret is worth your time, so let's put it to rest right now: The Secret really does have a "secret", but most of us are missing it.

For those of you that aren't familiar with The Secret, its message isn't really new. In fact, there's some world-renowned self-help gurus that have been preaching about manifestation for years.

And this is where the debate begins: are we really to believe that we can simply manifest things into our lives? That if we "desire" wealth, then wealth we shall have? That everything that happens to us is the result of our own thoughts, whether conscious or otherwise?

Well, yes and no.

See, some people read this and say, "ok, so all I have to do is meditate on money and I'll get rich".

Um..no.

And yet others read this and say, "oh, please... I didn't ask for the flat tire. I didn't ask to have the flu and I certainly didn't ask to work a crappy job for minimum wage."

And I see your point. I wouldn't ask for those things either.

But the secret to manifesting money (or anything else for that matter) isn't some magic mojo that makes good things just "appear" in your lap.

Quite the contrary, the idea behind positive thought is that it motivates you into positive action. And with positive actions, you're much more likely to see some positive results.

Years ago, my husband and I went to the West End in downtown Dallas to enjoy a leisurely lunch and just walk around. If you've never been to the West End, it was a little self-contained area full of retail shops, bars, restaurants and even a movie theater. The roads were brick and cars weren't allowed on the main street so you could just walk up and down without worrying about getting ran over by some guy trying to make the light.

Anyway, as we were coming out of the restaurant, we noticed a large group of people standing in the street cheering and clapping. Curious, we ventured over to see what was going on.

At one end of the crowd was a stack of cardboard boxes and I mean, they were stacked - maybe 8 foot high. At the other end of the crowd was this guy - shorter than me (I'm 5'6"), hunched down like a runner might be while waiting for the race to start.

Everyone's yelling and we're standing there trying to figure out why. And then it hits me:

He's going to try and jump those boxes.

No way, I'm thinking. There's just no way.

The guy jumps up and down a few times then takes off running. About halfway, he launches into a couple of flip-flops (head over feet over head), hits the ground hard with his feet and jumps into the air, somersaulting over the boxes.

The boxes never moved.

My point? Well, besides the fact that it makes for a really good story, the only difference between me and that guy was that I looked at the boxes and said "no way". But he looked at them and said, "yeah, I can do that."

Yes, he probably had quite a bit of practice but he had to have that positive perspective in order to even attempt it. I've wanted to do an aerial (cartwheel with no hands) since I was in grade school yet I never really put any effort into making that little wish a reality for me. Obviously, visualizing myself doing such an impressive feat is nice but if I really want to add this little trick to my resume, I'll need to go outside and physical practice until I get it right.

And the same is true here.

Manifesting wealth doesn't stop with a little meditation or a money-oriented mantra. The idea of "drawing wealth to you" doesn't necessarily mean that a million bucks will just magically appear in your bank account. And if it does, you might wait on spending it... I hear the banks are pretty good about finding those kinds of errors lickity split.

What it does mean however, is that maybe you begin to attract new opportunities to increase your income and thereby grow your overall wealth. Maybe you get a new job offer. Maybe you make the leap and launch that online store you've been talking about. Or maybe you just get really committed to saving and paying off your debts. In any case, you're going to see some positive results.

Yes, to manifest wealth or anything else for that matter, you must first believe that you deserve it. Why? Because if you don't stop that nagging little voice in your head that can't stop whining about how bad everything is, you're never going to be able to approach life with a fresh perspective. This is where the meditation and positive thinking comes in. You are literally "opening" yourself up to new possibilities. You are saying to yourself and the Universe that you're ready to start living again instead of just going through the motions.

But this is where most people stop.

They've meditated. They've practiced some positive self-talk and then they wait. Anyday now... money is just going to start falling out of the sky. It will... I visualized it so it will happen.

Unfortunately, when it doesn't rain money, they get discouraged and one of two things happens: either they meditate harder (I'm just not doing it right) or they throw in the towel and come away with an even poorer outlook than they had going in (see? even the Universe is screwing me over!)

What they should do instead is start looking for ways to turn those visualizations into real actions.

This is what our greatest mentors have meant when they said "I make my own luck".

You make things happen. You look for new ways of doing things and new ideas that could put you a little further along on your metaphorical path. You open yourself up to the notion that "anything is possible" and at some point you realize that anything is.

And that is when things will start to happen.

Not because you visualized them in your head but because you put yourself in a position to take advantage of new things when they come along.

So, what does all this have to do with "living large on a small budget"?

Well, maybe the budget doesn't have to be so small after all. Maybe "living large" also includes getting the most out of life which would certainly be achieved by taking new risks and opening yourself up to new opportunities.

Or maybe, just maybe, it really is an essential step in arranging your rich. After all, how many millionaires do you know who got that way by thinking "I can't"?

Permalink | 10 comments | Kate Luther's blog | Channel: Career and Income, Life Hacks, Lifestyle, Making Extra Cash

Similar entries:

This article is from Wise Bread.

Diva On A Budget - Living The Good Life When Your Fortune Isn't So Great

Kate Luther — Sun, 29 Mar 2009 00:16:01 +0000

By Kate Luther

I am a firm believer that a little self-indulgence makes for a happier, healthier you. This is especially true for women (no offense, guys), who are at a much higher risk of 'self-sacrifice' during stressful situations than men.

How so, Kate?

I'm glad you asked.

When stress strikes, both men and women produce three hormones - cortisol, epinephrine and oxytocin. The first two are produced in relatively equal amounts between genders. These hormones raise blood pressure and blood sugar levels, triggering the 'fight or flight' response. But it's that third hormone - oxytocin - where women have cornered the market.

Oxytocin essentially negates the effects of cortisol and epinephrine by stimulating emotions and promoting a woman's need to nurture. This is why most women react to stress by reaching out to others and nurturing their social circle, a phenomenon researchers are beginning to refer to as 'tend and befriend'.

Yet, while this might seem to be a much healthier way to deal with stress, the problem is that women often place the needs of those 'others' - be it family, children or friends - above their own, a result of our equating self-esteem with our ability to care for and protect the ones we love. The result is that self-sacrificing behavior I mentioned earlier and if left unchecked, it can be very detrimental.

This is I'm guessing, how the 'super woman' mentality was born and why as ridiculous as it might be, is still very alive today. We cook, we clean, raise kids and work a full-time job. We'll handle the carpooling, the soccer practices and the PTA. Of course we want some help. But don't you dare suggest that we need help or imply we can't do it ourselves.

So, with our biology lesson now out of the way, you can see why a little self-indulgence is so important for the sanity of the female population... we need to treat ourselves once in a while, no matter how small those 'treats' might be.

But alas... money's tight and your calendar is way overbooked. What's a super woman to do?

Fortunately, there are a number of ways to treat yourself like the diva you are without breaking your budget:

Make your own spa.

For me, self indulgence often meant a $25 pedicure twice a month and if you haven't painted your toes recently, then stop reading right now and get to painting... go ahead... we'll wait until you get back. See there's absolutely no better ego booster than pretty toes - seriously. And the foot massage that came with the pedi wasn't too shabby either. Unfortunately, there's typically 10 other things that I need to spend that $25 on and so the pedicure gets put on the backburner. But there's no need to pay money to a pro to get the pampering you deserve. In addition to painting those tootsies, you can make lavish and luscious spa treatments right in your own kitchen.

You can refresh dull, tired skin for example by combining 2 tablespoons avocado with 4 teaspoons of honey and 1 egg. Mix well, apply to your face and leave on for 20 to 30 minutes.

Or for a delicious skin smorgashbord, try this moisture and anti-oxidant rich recipe:

Mix the following (a food processor is probably your best bet):

1/2 honey dew melon (no rind)
2 slices of pineapple (no rind)
12 green grapes
1 peeled banana
1 peeled kiwi

This can be applied to your face and/or your body and is great for removing dead skin, moisturizing, soothing and protecting. Its literally an all-in-one mask for your skin.

Like a good body scrub? Here's one of the best:

2 cups of ground coffee
1/2 cup sugar or sea salt
3 teaspoons of scented massage oil

Mix together and scrub onto your skin using a circular motion to help improve circulation while removing those dead skin cells. The result is silky soft skin that smells delightful.

What about your locks?

To give hair a big shine boost, try a concoction of mashed banana, 3 drops of almond oil and the juice from two lemons diluted in a liter of water. Apply to dry hair and leave for 15 minutes before shampooing out.

If your hair is dull and dry, apply a mixture of 1/4 cup olive oil with 1 egg to dry hair. Cover with a shower cap and a warm towel (in that order). Then sit back and relax for an hour or so while your hair soaks up some moisture.

For these and more good-for-you spa recipes, check out these websites:

SpaIndex.com

MommySavers.com

SpaLivingForHealth.com

Save Up To Splurge

There's no reason that a diva can't throw a little money around without blowing her budget and fortunately... there's an easy way to do that. Follow the age-old advice of paying yourself first by setting aside even 10 bucks a paycheck - whatever you can afford will do and it doesn't even have to be the same amount each time.

Then when you've saved up enough, you can schedule that day at the salon, buy those $80 shoes or whatever it is that strikes your fancy.

Buy Smart

My sister-in-law is a fashionista when it comes to purses. And I'm not talking just any run-of-the-mill handbag... no, no, no. She likes the quality stuff - Coach, Gucci, you get the idea. Unfortunately, she - like the rest of our beloved family - have champagne taste and a coca-cola pocket book.

Ah, but that didn't stop sis - she's found some amazing purse bargains by shopping ebay and other discount outlets that carry those classy bags but at a fraction of the price. Some good sites to try? Besides ebay, check out ModaBell.com and IndulgenceHandbags.com.

Pull out your library card.

Or, if you don't have one, there's no time like the present. How does a library card give you diva status? Well, think about it... where else can you read the newest novels and bestsellers without paying a dime? But don't stop at the fiction section... your public library has books on just about every topic you can imagine so if you want to learn a foreign language, talk intelligently to your car mechanic or question your stock broker on their choice of mutual funds for your portfolio, you'll find plenty of resources to help you do it.

And let's face it... there's nothing sexier, nothing more diva-ish than knowing your stuff.

Permalink | 12 comments | Kate Luther's blog | Channel: Personal Finance, Frugal Living, Art and Leisure, Budgeting, Deals, Health and Beauty, Lifestyle, Shopping

Similar entries:

This article is from Wise Bread.

Bouncing Back When There's No "Bounce" Left

Kate Luther — Wed, 07 Jan 2009 05:17:48 +0000

By Kate Luther

We all have our ups and downs. We've all faced some pretty depressing odds and come out on top.

But sometimes, it feels like you just can't get ahead, no matter how hard you try. So what do you do?

Here's how to bounce back when the "bounce" is all gone.

Breathe. When stress rears its ugly head, we tend to hold our breath, figuratively if not literally. We tense up, we dig in, and our body kicks into survival mode while our mind races in sheer panic. What will we do? How will we survive? When will we see the light at the end of the tunnel? But what you need to do, above all else, is breathe. Just breathe.

Breathing allows you to think, it allows you to focus and it helps combat anxiety, something that more and more of us are claiming as an affliction. So, when you feel that "holy #&@*%" starting to set in, stop. And then breathe.

Count your blessings. A very old friend of mine used to say "so what... they can't take away my birthday." I've come to live by this motto. Before you try to analyze your situation, count your blessings, be it your good health, your loving family or your close network of friends. Do you still have a job? Do you have a roof over your head? If the entire world went to pot, could you go home again or join forces with a friend?

Seriously... what's the worst that could happen? Would you survive if it did? Its much easier to face your impending disaster when you've got all your "good stuff" backing you up.

Get Real. We all know the serenity prayer - change what you can, accept what you cannot, and be able to know the difference between the two - and its good advice to live by. Life is what it is. Yes, that's one of those "easy to say" statements but make it your mantra and you'll find it much easier to face problems with a clear head and a calm heart.

Figure out what options are available and then focus on those that will actually "better" your situation. We can all rant and rave for example, but will that really bring us closer to a solution. Anger, fear and doubt will never serve you. Instead, keep your head and look for viable options to turn things around.

Play Offense. If you watch football then you know that the offense's primary objective - besides actually scoring - is to dominate the ball and there's a reason for this strategy. One of course is that if we have the ball, the other team's offense doesn't but more importantly is that running around chasing offensive players makes a defense very, very tired.

Why?

Because the offense knows what play they're about to run - the defense on the other hand is simply "waiting to see what happens" and then reacting as the play unfolds. This can get exhausting very quickly and its equally tiring when its your approach to life.

Instead of reacting as events unfold around you, try taking the offensive approach. There is nothing more motivating than coming up with a new idea or plan that will make things better. If money is the issue - and isn't it always - then perhaps now is the time to start putting that new business idea of yours into action or take that second job that you've been tossing around. The point is, take control. Get the ball back and start driving down the field.

Formulate a plan. There is nothing more supportive than having a plan of action that you believe in. Pool your resources. Get back to basics. Implement a new budget or start sending out resumes. Whatever it is that you need to do, write it down and start putting things into action. When you have a gameplan, then you have a much better idea of what to expect.

Yes, the collection calls may still come or the layoff might still happen but you'll be "expecting it" instead of cringing in that "wait and see what happens" mentality.

And last but not least, remember to hang in there and look on the bright side. This isn't after all the first time you've hit a roadblock and I'm willing to bet that it won't be the last. Did you know for example, that we've had around nine recessions (including our current one) plus the Great Depression and that's just in the last one hundred years? And what do you know... somehow, we managed to pull through. I'm not saying its always easy and I'm not saying we shouldn't be concerned, but the reality is that everything works in cycles... And if you're "down" now, then there's no where to go but up.

Permalink | 11 comments | Kate Luther's blog | Channel: Personal Finance, Frugal Living, Life Hacks, General Tips, Lifestyle

Similar entries:

This article is from Wise Bread.

Looking On The Bright Side: How to Find A Silver Lining In The Current Financial Crisis

Kate Luther — Sun, 19 Oct 2008 19:20:50 +0000

By Kate Luther

There was a standard mantra in my house when I was growing up: "make the best of what you've got". If we were between paydays, that might mean eating grilled cheese sandwiches or eggs and biscuits for dinner, taking our lunch to school or foregoing that new outfit at the mall. To my Dad, it meant finding a way to make due in order to avoid even the smallest expenses. And my Dad lived what he preached, tying knots in his broken shoelaces and sewing up holes in his socks.

Were we poor? Actually, no. We weren't rich by any means but as middle class families go, we were doing pretty good. My Dad just had a different perception of what qualified as a legitimate need for spending money and had no qualms about foregoing material luxuries in order to keep a few extra dollars in his bank account.

Now that I'm grown and have a family of my own, I've realized that maybe Dad wasn't so far off the mark after all - don't tell him I said that, of course - he'd never let me live it down.

Granted, he went to the extremes to avoid spending money but his basic idea was right on. And the reason it worked is that he wasn't worried about wearing the "right" clothes or driving the "right" kind of car. He would have never spent $100 bucks on a pair of sneakers - not when he could get shoes that worked just fine at PayLess or WalMart for a mere ten-spot.

Which brings me to the point of this article: as bad as the economy is, maybe there's a bright side after all.

Now, before you start typing out angry comments to this post, hear me out. I'm not saying that losing your job or your house is a good thing, although I've known lots of people who lost their job and then later discovered it was the best thing that could have ever happened. But that's another blog.

Nor am I saying that we don't all deserve to live the "good life", because we most certainly do. But what exactly defines the "good life"? Is that really measured by our net worth or isn't it more based on the amount of happiness that we derive from our existence on any given day? And as we all know (and as we've seen), if there's one thing money can't buy, its happiness.

What I am saying is that this dismal economy has forced many of us to come back down from the clouds and start being realistic about the way we look at money.

And maybe that's not such a bad thing.

Our society has become a people of convenience. Our food is processed and microwaved so that we don't have to waste time cooking it. No-one carries money anymore - instead we just charge our purchases on that magical credit card because it allows us to worry about how to pay for the item later. That same mentality is a big contributor to the mortgage crisis we're now seeing as millions of borrowers bought houses they really couldn't afford because greedy lenders gave them a way to "bump" the higher prices to a future date through creative financing called adjustable rate mortgages and balloon notes.

As a result, we not only stopped seeing the "big picture" but we became oblivious to its existence at all. We have been focused on the "here and now", with the idea that the "here and now" was intended only to appease our flights of fancy without regard to the price we might have to pay later. Don't believe me? Just look at the environment. If that's not arrogance, I don't know what is.

We distorted the proverbial "American Dream" to become something that represented an obnoxious amount of wealth that was free of any scruples or morality. And as long as Corporate America was willing to let us charge and extend our financial obligations, that skewed American Dream stayed in tact.

But we should have known better.

It doesn't matter who you are or how rich you are, reality will always come crashing in. Its just a matter of time.

And that's what happened here.

Our main export is actually debt - yes, debt... about $700 billion per year in financial securities that until recently were backed by a seemingly booming economy. But now that our economy is struggling, those financial securities aren't as appealing to foriegn investors which makes our economy worse, which makes our securities less attractive and so on and so on. But what's really sad is that we didn't diversify our incomes like we did our portfolios. America doesn't really "make" a ton of other things so when selling debt stopped generating cashflow, we had nothing else to take up the slack.

The trickle down effect of the Wall Street fiasco is that your average Joe and Jane are suddenly faced with limited incomes and rising prices. Ridiculously rising prices I might add - I saw a guy bringing back a roll of foil at the grocery store the other day - it seems the store had failed to give him the sale price of $7.95 and instead charged him the full price of $9.59. $10 for a roll of aluminum foil? It better do the cooking for me.

My point is, now everyone's feeling pinched and not just in the "two more days to payday" kind of way, but more of the "what the hell are we going to do now?" kind of dilemma.

And that's a scary place to be.

But before you throw your hands up in the air, take a deep breath and relax. While its doubtful that the big conglomerates have learned their lesson from this experience (visit AIG), you and I can actually come away from this with a new and enlightened perspective while managing to keep the shirt on our back. Its just going to require a little shift in perspective.

For starters, while I don't want to encourage not paying your bills, the truth is that creditors are much more likely to work with you if you're falling behind. Stay current on your obligations and you aren't as likely to see that accomodation. So if you're staring at thousands of dollars in credit card bills, you need to make some decisions about your priorities.

Your mortgage, your utilities and your grocery bill all come first. If you can pay something on the credit cards, great. If not, then you need to come to that realization and accept it. Yes, your credit score might tank before this is all over but take it from someone who knows, you can rebuild that credit. Its a long and winding road, but trust me when I say it can be done.

Once you've got your priorities in place, you need to learn, as my father did to make the best of what you've got. Its okay if we can't buy all the latest gadgets on the market. Its okay if we need to keep driving the same car beyond two or three years. In fact, pay that puppy off and discover what its like not to have a car payment at all.

Downsize where you can and believe it or not, start saving. Seriously... even if its only $10 a payday. That little emergency fund could definitely come in handy some day and if nothing else, it will give you a sense of security and accomplishment, something we could all use right now.

Stop putting in so many hours at the office and start looking at the millions of other ways to make money. The truth is, there's still money out there. Its not as free-flowing but I can tell you as a freelancer, that this month may well be one of the best I've had this year.

The reason is that I diversified my skills and branched out into areas I don't normally tackle. And I'm being rewarded for those efforts with enough funds to cover all my obligations. Did I strike it rich? No, but I do have a little breathing room which is really something considering where I might have been instead.

You can do the same. Maybe start your own virtual assistant business. Clean out that garage and start selling on eBay. Go sling drinks at your local bar on the weekends. The point is, take action. Don't just sit there biting your nails wondering where the money will come from. The opportunities are there - you just have to act on them.

And if you think now is not the time to start a new business, think again. Many small businesses are pulling in the reigns and downsizing. They're cutting services and products because they want to control costs. But you don't have any overhead and if you play it smart, you can keep it that way making any money you earn pure profit.

Cancel your gym membership and start running or walking in your neighborhood instead. If you've got the space, grow your own vegetables - lettuce, cabbage and broccoli are a few good winter varieties to start with. You can even plant a tomato plant in front of a sunny window in your house and enjoy fresh tomatoes all winter long. Don't think that will make a difference? Oh yes it will. At about $2 per pound where I live, tomatoes can do some damage to a grocery bill.

If possible, wash and iron your own clothes instead of taking them to the cleaners. Learn to cook again instead of dining out and discover the beauty of a PB&J sandwich and a glass of milk. Examine your lifestyle - can you rent DVD's instead of going to movies? Can you spend a Friday night playing cards with friends instead of going out on the town? There's is no shame in saying "I can't afford that right now" and certainly not in saying "I don't need that right now".

Look around, take stock and re-evaluate how you approach your money. You don't have to tie knots in broken shoelaces but you can start making changes in what qualifies as a necessary expense. You'll likely find that while your "cuts" aren't always pleasant, they are usually doable and make a noticeable contribution in your quest to survive our economic catastrophe.

And then when the economy does finally bounce back (and it will) we'll have adopted an entirely new way of living. One that doesn't depend upon the greediness of others but relies solely on our own creative energies and practical state of mind.

And then perhaps, we can start teaching that lesson to the powers that be.

Permalink | 12 comments | Kate Luther's blog | Channel: Personal Finance, Frugal Living, Credit Cards, General Tips, Lifestyle, Making Extra Cash, Real Estate and Housing, Shopping

Similar entries:

This article is from Wise Bread.

Book Review: Personal Development for Smart People: The Conscious Pursuit of Personal Growth

Kate Luther — Sun, 12 Oct 2008 03:28:55 +0000

By Kate Luther

Some books draw you in with mystery and suspense. Others keep you hooked with drama or intrigue. And then there are some that just manage to really hit home and make you say "Ah-ha!"

Such is the case with Personal Development for Smart People by Steve Pavlina. Using what Steve calls "personal growth from high-level concepts to practical actions", Personal Development for Smart People goes beyond just setting goals and takes us much deeper into the human psyche.

Now, for those of you who may not be a fan of concepts such as the Law of Attraction, keep reading because this isn't your everyday "think it and you'll receive it" kind of book.

Instead, Steve approaches some of the tougher questions that deal not only with our own individual satisfaction but also how we connect to the Universe around us. And interestingly, this approach takes away our ability for self-denial and puts us back into the driver's seat of our own lives.

Using seven fundamental principles - truth, love, power, oneness, authority, courage and intelligence - Steve encourages us to approach life by asking the question "where is the path with a heart?". This enables us to stay focused on the things that really matter and steer clear of mindless preoccupation for the sake of avoiding the things we're not ready to deal with yet.

And perhaps that's one of the reasons I liked this book so much.

Its not that you have to change everything in your life right now. In fact, its quite okay if you aren't yet ready or equipped to change those things that aren't in-line with your dreams and ideals. But you do at least, need to acknowledge that the conflict exists and more importantly, that you'd like the changes to occur.

"Whenever you're faced with a part of reality you don't like, and you feel powerless to change it, the first step is to accept the truth of your situation. Say to yourself: This situation is wrong for me, yet I lack the strength to change it right now."

And in case you're wondering, this was just the first of many "Ah-ha!" moments for me. How many times do we continue going through the motions, knowing somewhere deep down inside that it isn't really what we want but because we feel unable to change it, we just pretend it doesn't exist?

Does acknowledging this kind of "Truth" make things better? Oddly enough, I think it does. I think when we stop lying to ourselves about who we are versus who we'd really like to be, it makes it much easier to see where we need to adjust our course.

Its so easy to fall into the many traps of our modern-day society. There's peer pressure to keep up with those darned Joneses all the time and we're constantly being told by our political and religious leaders what's right and what's wrong without any real thought being given to whether or not those opinions mesh with our own. Instead, we often follow along, trying to fit in with a particular party, clique or class.

But in doing so, we've agreed to let someone else do the driving on our behalf and then when things don't turn out the way we like, we feel surprised and certainly betrayed that our driver didn't get us to the destination that we wanted.

But Personal Development for Smart People puts all of this right back at our own doorstep which, I'll admit, can be a scary concept but its definitely one worth examining.

The book is divided into two parts, the first dealing with the seven principles and what they mean. The second part delves into actual application and gives you ideas for applying these universal principles to all areas of your life, whether its bad habits you'd like to break, health you'd like to improve or money you'd like to make.

When I finished reading, I felt a little less stressed and certainly much more focused and "in control" of where I'd like to go next. My problems and concerns hadn't magically disappeared but I felt like I was much more equipped to tackle them head on.

And that's really the whole point.

In the introduction, Steve says that the

"goal of this book is to teach you how to bring all areas of your life into alignment with these universal principles [the seven mentioned above]. This requires injecting truth into your relationships, aligning your career with love, and bringing power to your spiritual practice. This is what it means to live as a conscious, intelligent human being."

After reading Personal Development for Smart People, I'd say he met that goal and then some.

Permalink | 5 comments | Kate Luther's blog | Channel: Life Hacks, Productivity

Similar entries:

This article is from Wise Bread.

Too many online accounts? You need an aggregator.

Kate Luther — Thu, 07 Aug 2008 02:15:07 +0000

By Kate Luther

From Twitter to Digg, emails to IM and let's not forget all those social networking sites, its easy to get bogged down just by logging on.

Fortunately, you can keep your online socialite status without sacrificing productivity in the process. If you've got too many online accounts, there's just one thing to do: aggregate them, baby!

Fuser

The first thing we want to do is pull all of our various lines of communication together in one simple place. Fortunately, Fuser allows you to do just that. You can link a whole range of email addresses, including Gmail, Yahoo!, Hotmail, AOL and even POP3 accounts to Fuser so that when you log in, you see all of your emails in one inbox. Fuser indicates which email came from what account and you can respond or file them away in custom folders you create.

Fuser will also aggregate your MySpace and Facebook accounts so that you can receive your messages and comments from the Fuser interface. And as if that weren't enough, you can also link your Twitter account to keep up with what fellow Twitterers are doing and send new tweets as you like.

Pidgin

It used to be that ICQ and MSN IM were the top ways to chat real-time online. Now there's a whole host of IM providers and if you're like me, you probably have an ID with every single one.

To avoid having upteen different IM windows open on your desktop, you need something that will allow you to manage them all at once.

Enter Pidgin, a downloadable application that works with sixteen - count em, sixteen - IM applications, including AIM, Google Talk, ICQ, IRC, MSN, MySpaceIM, Yahoo! and Zephyr to name a few.

Just download the application, create your account - yes, its free! - and start linking your various IM apps to Pidgin to manage.

ProfileFly

For those of you who want to promote your online profile, there's ProfileFly. This web-based service allows you to link to a variety of online profiles, including MySpace, Hi5 and Facebook, along with Twitter, Last.FM, Flickr, your multitude of social bookmarking sites and of course, your blogs, your IM accounts and even various email addresses.

You can add as many or as few as you like and when you're finished, you've got something that resembles a MySpace profile only it ties in all your various social efforts around the web.

The profile is searchable and if you include your email or IM accounts, the public can see them and can use them to contact you.

Definitely not for the shy or anonymous-oriented but if you really want to be the social butterfly, then hey... ProfileFly can certainly help.

Profilactic

Profilatic is another social networking aggregator/promoter but with a lot more flexibility and it works with a whopping 186 social sites plus you can add as many custom sites as you want. It also works with WordPress so you can add a "lifestream" (which is another way of saying profile) to your blog. Profilatic features feeds from your various sources - blogs, twitter, MySpace, etc - and it provides link so that friends and stalkers know where to find you on the web. You can see mine here .

Permalink | 16 comments | Kate Luther's blog | Channel: Life Hacks, Freebies, Productivity, Technology

Similar entries:

This article is from Wise Bread.

5 Ways to Cut Your Grocery Bill

Kate Luther — Wed, 06 Aug 2008 01:08:22 +0000

By Kate Luther

If you're like me, a trip to the store for a loaf of bread or a gallon of milk can easily run $30 to $40 bucks. Has inflation just really gone up in my neck of the woods? No... I just always seem to find other things I need.

But now that we've moved to the country - and I mean, really out in the country - running to the store is more than just a quick jaunt around the corner. In fact, going to the grocery store means "going into town" and that's somewhat of an event all by itself.

So, to save on gas and to avoid multiple trips to the store, I decided to rethink the way I shopped. Here's five easy ways to cut your grocery bill and get the most from your shopping trip:

1. Make a list. Okay, you've probably heard this one before but I'm going to expand on this idea a bit. Before you start listing items, sit down and plan your meals for the upcoming week, even if you're just planning to have sandwiches one night. Now go through your fridge and cabinets and determine what items you need to make those meals. Next, you'll want to add any staples that you're out of - i.e., flour, sugar, bread, milk, etc. - and anything else you want to include. While you don't have to be obsessively organized to make this work, it does make the process easier if your cabinets have some sort of order to them.

2. Know what you can spend. Before you place one thing in your shopping cart, you should know exactly what you plan to spend. And as you put an item in the cart, write down its price beside the item on your list (it's easier if you round up). When you're through shopping, add it up and see how you did. You'll be surprised at how much you spent, especially if you didn't implement Rule #4 (see below).

3. Not on the list? Don't buy. There are two ways you can work this one: either you agree that you won't buy anything if it's not on your list or you allow yourself, say, three extra items in case you forgot to add something. You can also note the item so you can add it to your list next time, although you'll often find that by your next shopping trip, you don't want the item as badly.

4. Eat before you go. There's nothing worse than shopping on an empty stomach, especially when so many grocery stores now include gourmet delis with delicious aromas wafting through the air. Make sure you only shop on a full stomach to avoid spending more because you're hungry.

5. And last but not least...pay attention. This is perhaps the most important tip you can use to save on your grocery bill. Because believe it or not, grocery stores have a motive for every aisle, every endcap and even the overall design of the store.

For example, the deli, the produce aisle, and the flowers and gifts are typically placed near the front of the store so that you have to pass them to get to the rest of the aisles. These placements are there for three reasons: 1) if the fruit and vegetables look good, then we can assume the rest of the store must be the same high quality, right?; 2) regardless of what we really plan to eat, the majority of us have intentions of eating "better". So, if we buy some apples or bananas that weren't on our list, it's okay because we're doing something good for our bodies; and 3) If you're in a hurry, you're less likely to buy extra goodies. Providing a tempting deli and some eye-catching, colorful produce is an easy way to slow you down and get you into a "shopping mood".

You'll also find that endcaps often feature sale items but also include similar or related items that aren't on sale. Charcoal, for example, might be the heart of the sale but then that makes you think of hamburgers, hot dogs and oooh... how about some steaks?!

Front store displays entice you to buy things you might not have looked at otherwise, including everything from a gigantic bag of Cheetos to a cheap t-shirt with a fish and "Kiss My Bass" on the front.

Checkout aisles have magazines, candy, batteries and a whole slew of other random things in one last attempt to get you to fork over more cash. And if you're not buying, you can bet that the candy and big bag of balloons catches the attention of your kids.

The bottom line?

Even the best budgeter often finds that groceries fall into a gray area and that's because we have such a hard time tracking and estimating what we'll spend from month to month. But with a little planning and a little willpower, you can get everything you need at the store without spending a penny more than you planned.

Permalink | 23 comments | Kate Luther's blog | Channel: Frugal Living, Budgeting, Food and Drink, Shopping

Similar entries:

This article is from Wise Bread.

3 Ways to Travel Free (Or At Least Really Darned Cheap!)

Kate Luther — Wed, 18 Jun 2008 17:52:18 +0000

By Kate Luther

How would you like to get out and "see the world"? Visit the Carthage Ruins or spend a week just hiking across Europe. Paris, Italy or maybe the Bahamas... there's really just no end to the places you can go.

Now, I know what you're saying - those places cost money and technically you'd be right. While traveling is certainly one of the more exciting ways to spend your time, airfare and hotel rooms can add up quickly and with the economy the way it is... well, it looks like Aunt Tessie's farm is about all the traveling you'll be doing anytime soon.

But there are ways to get around those big travel expenses without sacrificing your fun. In fact, with these tips you might just find that your trips become all the more adventurous!

House Swap - Seriously. Swap your house with someone else for a week, a month or how ever long the two of you agree to do so. House swapping is actually a pretty popular way to travel and it has quite a few advantages to staying in a hotel. For starters, most house swappers make their various amenities available to you so you'll have a functional kitchen which means you can save money by buying a few groceries and eating in and you won't go home with a big bag of dirty laundry because you can wash your clothes before you go. Those "amenities" also often include a car, jet skis, boats and other cool things that you'd have to rent otherwise. Another advantage is that while you're manning the ship in their house, they'll be watching over yours as well which means that your property isn't left vacant and theives are less likely to try to venture in. No more packing up your valuables when you leave and no more vacating the room so that the cleaning staff can change your sheets. And instead of those goofy connecting rooms for the kids, you can keep your family under one roof for the entire trip. To learn more about house swapping, check out InterVac or The International Home Exchange Network.
Cruise For Free. Yes, free! Those big cruise liners take pride in providing a variety of entertainment and activities for their paying guests. Provide some of that entertainment or activity and you could sail the seas for free. Traditional entertainment includes singing, dancing and of course acrobatics but don't think for a minute that the list stops there. Magicians are very popular on cruises as well as comedians and jugglers. But again, the list doesn't stop there. Don't let a lack of artistic talent keep you off that boat - cruise lines are also looking for a variety of "enrichment" instructors, meaning those who can teach something fun and/or enriching such as arts and crafts, painting, yoga or even how to trace a family tree. The idea is to come up with something that's inexpensive for you (you'll have to provide any necessary supplies) while giving the passengers a unique opportunity to learn something new. Teach them to mambo or jitterbug. Give them a crash course in Spanish or French. Show them how to write a best-selling novel or how to meditate properly to gain eternal peace. Whatever your niche, think about how you could share your knowledge and turn it into a class for others. Then market that course to the cruise lines. You can also check out Cruise Ship Jobs to help you get the most from your efforts.
Study For Free, Live Abroad. Universities tend to believe that an education obtained abroad is one of the most enlightening ways to learn and our government tends to agree. As a result, there are a number of grants and scholarships available for students that want to study in a foreign country. If you want to tap into government funding, you'll have to find a school that has a domestic branch in the States as any credits you obtain must be able to count here at home as well. That said, there are also work-study programs that don't come with those restrictions so if you don't need the government funding, you're pretty much free to go anywhere you like. Check out American Institute for Foreign Study for more information.

And there you have it. Three creative ways to seriously cut your travel expenses and tap into the vast opportunities that await you when you see the world. Granted, these ideas aren't as conventional as just booking your own hotel room but then let's be honest... life without a little adventure isn't really "life" at all, now is it?

Permalink | 6 comments | Kate Luther's blog | Channel: Personal Finance, Frugal Living, Life Hacks, Cars and Transportation, Lifestyle

Similar entries:

This article is from Wise Bread.

To Tax or Not To Tax: That Is The Money Market Question

Kate Luther — Sat, 03 May 2008 17:09:42 +0000

By Kate Luther

As America’s love affair with self-investing continues to grow, so does our fascination with tax-free accounts. Don’t believe me? See for yourself. The next time you’re in a conversation, try working the words “tax free” into your conversation and watch the ears perk up. Admit it. We despise taxes. We loathe them. So much so in fact, that Uncle Sam made not paying those taxes a crime. So the idea that we can legally earn a buck without sharing it with our dear old uncle is well, deliciously criminal.

But as WiseBread investors know, what’s good and tax-free for one investor isn’t always the right choice for another and this holds true with all your investing venues, right down to choosing a money market fund.

Most money market funds are taxable and invest in things like Treasury Bonds and CD’s but there’s also a decent selection of tax-free funds that invest in the short-term obligations of tax-exempt entities such as your local government. While the yield from these tax-free investments are a bit lower than their taxable counterparts, any return you receive is typically exempt from our friendly Uncle Sam.

So which is better?

To determine the right investment for you, you need to take the tax issue out of the equation. Your taxable versus your tax-free as it were and luckily, there’s a pretty easy formula to help you make your decision.

Tax-free yield / (1.0 – your tax bracket) = Tax-free equivalent

So, let’s say we’re considering two funds: a taxable fund that pays 2.5% and a tax-free fund that pays 2.0%. If your tax bracket is 20%, your equation is going to look like this:

2.0 / (1.0-.20) = 2.5

In this instance, the tax-free equivalent is 2.5%, the same yield as your taxable fund. But lower the tax bracket to 15% and the results work out a little differently:

2.0 / (1.0 - .15) = 2.36%

That’s a .14% less return than the taxable fund. But what if you increase your tax bracket to 25%?

2.0 / (1.0-.25) = 2.67%

Now the tax-free fund is clearly the better choice, all other things (like expense ratios and investment selections) being equal.

Of course, neither of these investments will be your key to retiring early and realistically, a one-year CD is currently offering a higher return than MMF's. But that's not always the case and as we know, a good portfolio is one with some diversification.

The bottom line? Know how to get the most from your investing dollars which, after all is what smart investing is all about.

Permalink | 2 comments | Kate Luther's blog | Channel: Personal Finance, Investment, Taxes

Similar entries:

This article is from Wise Bread.