If you’re a fan of Dave Ramsey you often hear people call into his radio show, telling Dave their stories of paying stupid tax. It’s basically just money that people have essentially thrown away because they didn’t know any better. Some examples of stupid tax are:

* Someone leased a car only to end up owing a balloon payment at the end of the lease terms.
* Someone signed up for a service only to realize they couldn’t get out of it without paying way too much money.
* Someone used their credit cards and racked up big amounts of debt.
* Someone didn’t pay their taxes or a parking fine and ended up owing way more than they would have if they just paid right away.
* Someone gets stuck in a cycle of needing payday advance loans and ends up paying high interest rates because of it.
* Someone consistently pays lots of money to the bank in overdraft fees each month because they can’t get a handle on their finances.

Just about all of us have paid stupid tax at some point (or several times) in our lives. My biggest payment of stupid tax happened because I decided to dabble in the stock market. I had some extra cash and thought it would be a good investment. I put about $3000 into one single stock which tanked. I paid what I would call a hefty stupid tax to learn that someone who doesn’t follow stocks closely and doesn’t know much at all about the stock market should not invest thousands into a single stock on a whim. It’s pretty much like playing the lottery, only the ticket costs a lot more than $1.

Have you paid stupid tax?

One of my favorite places to go and get financial advice is Joe Sangl’s web site. He is the Pastor of Financial Planning at my church and travels around the country teaching seminars on money.

He recently wrote about maximizing your tax refund and I wanted to share it with you.

Before You Spend It, Plan It

We all start dreaming about how we’ll spend our new wad of cash that we receive over the next few months. Some say they’ll take a vacation, make home improvements, pay student loans, etc. Joe suggests that before you spend your refund, plan it out first.

Fill Your Emergency Buffer Fund

You need at least $1,000 for your Emergency Buffer Fund, says Joe. If you have a house or children, you really need $2,500. Use your refund and fill it up!

Fund Your Known, Upcoming Non-Monthly Expenses

These non-monthly expenses include: Christmas, vacations, taxes, insurance premiums, health club membership fees or homeowner’s association dues. If you haven’t saved for these already, when they show up it can really throw you for a loop.

Eliminate Debt

First, make sure you take care of the two items above and then you can work on paying off your debt!

Fulfill Some Dreams

If you already have an emergency fund, you have saved for non-monthly expenses and are debt-free, you can use your refund for your dreams, says Joe. Give to others, invest in an IRA and/or treat yourself to something fabulous. Just make sure you get a great deal.

Should You Even Receive A Refund?

If you can abide by your budget every month, you could consider increasing your W-4 exemptions so you come close to breaking even at tax time, he suggests. But if you haven’t proven to yourself that you can follow a budget, Joe recommends leaving your exemptions alone. Focus on money management first.

We’re in the heart of tax season. Tax preparation companies are probably popping up in strip malls all over your town. While many of them offer a useful service and do their job well, some may be spreading lies just to get your business. Do these sound familiar?

You can get your tax refund immediately. Is this true? Not really. You’re actually getting a Refund Anticipation Loan, or RAL. They’re giving you a short-term loan based on what you expect to get back from Uncle Sam. The problem is that loan typically comes with hefty interest, which really doesn’t make sense because if you file your taxes electronically often you’ll get your money in a matter of days.

I can get you a bigger refund. Theoretically every tax preparer should be getting you the same amount of money. If a tax preparer promises to get your more money, beware. They may be falsifying your tax returns which is dangerous since no matter who prepares your tax documents– you are ultimately responsible for what they say.

There are some steps you can take before hiring a tax preparer in order to ensure you’re getting a good one.
* Ask for credentials or references. Talk to people who have used them before and see what they have to say.
* Do some digging with the Better Business Bureau. Check for any complaints that have been issued against this tax preparer.
* Find out if they’re a certified public accountant. You’ll want someone who knows exactly what they’re doing to handle your paperwork.
* Make sure you can contact them year-around. If there is a problem after tax season, you don’t want to be stuck with a tax preparer who only has an office a few months out of the year. Make sure you get their contact information.

In today’s tough economy it can be difficult to put away some cash and keep it there. According to the U.S. Department of Commerce’s Bureau of Economic Analysis, the personal saving rate in December was 4.8 percent, up from 4.5 percent in November. The personal saving rate is calculated by subtracting what Americans spend from what they make. A recent article in Florida Today newspaper discussed the importance of saving.

Motivation:

Emergencies are one of the most important reasons to save some cash. The next reason should be retirement and then saving up for something you really want like a new car or television. Here’s a rule of thumb: have enough money to live on for six to 12 months. And it’s important to consistently put money into it, says the article.

Teaching Kids:

I remember getting my first piggy bank and I was so excited when I was able to drop a few dimes or quarters into it. Encouraging our kids to start saving early is important for their future. Here’s a tip: teach them to divide any money they earn or get into two piles. put half in the bank and keep the other half or spend it. Also, teaching kids how credit cards work is important as well. According to a 2008 Sally-Mae credit card study, college seniors graduated with an average of more than $4,100 in credit card debt.

Stick to a Plan:

Keep to a budget no matter how difficult things may seem. Continue contributing to your 401(k) and continue stashing away some cash. When it comes to retirement, start saving NOW, says the article. First, you can analyze your spending and expenses. Try cutting back and look for free entertainment or cook more at home. One thing my husband and I do is keep loose change in jars. When they fill up, you can take them to the bank.

Easy Ways to Save:

$15: Amount you can save each month if you stash 50 cents a day in loose change.

$6: You can save this amount per month if you cut back on soda by 1 liter per week.

$40: Monthly amount you can save if you switch from cappuccino to regular coffee.

$25: Your monthly savings if you pa your credit card bill on time.

Check out America Saves for some more tips and help.

My friends and I are working on starting a business. While I am excited about this new opportunity, I am also nervous about the fact that it could put stress on our friendship. I certainly don’t want to lose any friendships because of a business deal, but at the same time I’m excited about the thought of working with people I love on a project I’m passionate about.

The Basics

We are five friends, spread throughout the country. We each have completely different jobs and bring many different skills to the table. Our idea is to launch an online business, selling a limited number of products that focus around a tradition that we have had for nearly a decade. (I know I’m being vague, but I have to be at this point!)

The Pros:

Because there are five of us, the workload should be lighter. We can each handle different business tasks and we are able to juggle it with our other jobs. It also means less risk because each of us only has to bring about $500 to the table. Our business will have no debt. The business will give us each something to dream about, get excited about and ultimately will allow us to help other groups of women.

The Cons:

We are friends first, business partners second. While I may be more entrepreneurial, other members of the group are afraid of the risk and seem to be dwelling on it. Some members of the group have skills that really benefit the business, while others do not. This could be magnified down the road while some of the women feel they’re taking on a larger share of the workload while getting the same return.

Have you ever started a business with friends? Would you ever own a business with friends?

We often hear about people who don’t pay their taxes, but what about the people who pay too much? According to statistics, 2.2 million taxpayers over-payed their taxes by $1 billion! Could that be you? If you’ve ever opted to take standard deductions rather than itemized deductions it could be. Or perhaps you learned about deductions you’re eligible for that you didn’t know about in years past. Lots of homeowners miss eligible deductions and charitable contributions account for 27% of missed deductions. Either way– it may not be too late. Here are the steps to take to get the money back that you deserve:

1. Consider the time. You have three years to amend a tax return. That means if you want to adjust your 2006 return you have until April 15, 2010.

2. Talk to a pro. If you’re going to the trouble of amending your tax return, you may want to hire a professional. They’ll be able to help you through the process and make sure there aren’t more deductions you missed.

2. File your change. If you want to make a change to a past tax return, you need to fill out form 1040x and submit it to the IRS. You’ll have to explain your reason for making the change.

It’s the last Friday of February. Spring is around the corner so why not celebrate the arrival of new life and warmer weather with some freebies? We’ve even got some freebies that will help you with spring cleaning!

Free Swiffer Starter Kit: Have a business? Register as a Proctor and Gamble Professional and you can receive a free Swiffer Starter Kit. It should arrive within six to eight weeks.

Free Pizza and Mozzarella: There’s a new freebie at Earth Fare. Just print off this coupon and you’ll receive free pizza dough and mozzarella with any purchase.

Free True Lemon Sample: Like adding a little flavor to your water? Try out the new True Lemon, True Lime or True Orange from Citrus Made Simple for free. Just register for your free sample.

Free Tide: Get a freebie to help you with some spring cleaning. Sign up for this free sample of Tide with Febreeze from Wal-Mart. You’ll also get a $1 off coupon if you decide to purchase the product. Plus you’ll get access to other free samples including free diapers and exclusive pet food coupons.

Sick of winter yet? For many this winter has seemed like that pesky cough you can’t get rid of. It just keeps coming back. Since March is approaching and that means Easter, sunshine and daffodils, many of us are starting to get antsy for spring. While the weather outside may be all winter, try bringing some spring into your home with these five quick cures for spring home updates.

Spray Paint

Spray paint is an awesome invention. It’s easy-to-use, relatively mess-free, and pretty cheap. Today I’m spray painting a chandelier yellow. The small pop of color will brighten up my home in a big way– and all for less than $5.

Grocery Store Flowers

Just about every other week I pick up a small $3 bouquet of purple mums at my grocery store. They last a long time and offer a lot of bloom for my buck. Try bringing the outdoors in to update your home for spring.

Framed Photos

Consider swapping out framed photos with bright shots of flowers, greenery or the beach. Today only you can get a free 8×10 print from Walgreens.com when you use code FREEPHOTO at checkout. Pick up a frame at a local thrift store and you’ve got cheap and cheery instant art.

Open Curtains

Sounds simple, but opening up your curtains will let in some sunlight. You’ve likely had them closed during the winter, but now it’s time to let in some light.

Throw Pillows

Throw pillows are a great way to add in splashes of bold color to your home. Check out easy step-by-step instructions like the ones at allfreecrafts.com. With some affordable fabric and a little time you’ll be well on your way to updating your home with throw pillows for spring.

About a year ago Cinda Baxter wrote a blog post about the importance of supporting local businesses. Soon that idea blossomed into what is now The 3/50 Project. Here’s the lowdown:

3: Think of three local businesses that you love. What would happen if they shut down? Make a commitment to stop into those stores this month.

50: If half the employed population spent $50 a month in those businesses that would generate more than $42.6 billion in revenue.

Wondering what’s the big deal with shopping locally compared to shopping in chain stores? Well much more of your money sticks around your community when you shop in locally owned stores. According to the 3/50 project, for every $100 you spend in local shops, $68 returns to the community through taxes, payroll and other ways. If you spend that same $100 in a chain store, only $43 stays local.

Here’s how you can support local businesses through the 3/50 Project:

1. Find out who’s involved in your community. The 3/50 Project has a list of local businesses who are supporting this movement according to each state. Search for those in your area and do your part to get behind them.

2. Become a supporter. Even if you don’t own a local brick and mortar shop, you can still be a supporter. Print out the free flyers, hand them out and spread the word.

3. Promote the movement. There are also ways you can promote the movement through social media. If you have a blog, consider putting a badge promoting The 3/50 Project on your website. You can even promote the movement on your Facebook page.

Still feel like you need more information about the benefits of shopping local? Check out the frequently asked questions page of The 3/50 Project.

A recent article on Yahoo! Hot Jobs listed job sectors that aren’t so hot. In fact, these ten industries are experiencing significant declines and many of these jobs are expected to disappear over the next eight years.

1. Department stores: Projected to drop 10.2 percent of the 1.56 million jobs they had in 2008.

2. Semiconductor manufacturing: Estimated to lose 33.7 percent of the 432,000 jobs it had in 2008.

3. Motor vehicle parts manufacturing: Projected to reduce its force by 18.6 percent of its 544,000 jobs.

4. Postal service: Expected to drop 13 percent of the 748,000 jobs it had in 2008.

5. Printing and related jobs: Projected to reduce 16 percent of its 594,000 jobs.

6. Cut-and-sew apparel manufacturing: Anticipated to lose 57 percent of its 155,000 jobs.

7. Newspaper publishers: Projected a 24.8 percent reduction of its 326,000 jobs.

8. Mining support jobs: Expected to lose 23.2 percent of its 328,000 jobs.

9. Gas stations: Estimated to reduce employment by 8.9 percent of its 843,000 jobs.

10. Wired telecom: Projected to drop 11 percent of its 666,000 jobs.

So what do you do if your industry is on this top-ten list?

1. Don’t Panic: Just because you’re in an industry that’s experiencing a decline in demand or scaling back doesn’t mean you need to panic right now. Try to focus on the present– you have a job when many workers do not! Just because your industry is cutting back its workforce doesn’t necessarily mean you will lose your job.

2. Prepare: There are plenty of employees who are laid off unexpectedly. But using this knowledge of industry trends, you can prepare for the future. Think about beefing up your resume with volunteer work, additional education or another part-time job. You may want to discuss options with a career counselor and find ways to make yourself more marketable just in case you do lose your job.

3. Set Yourself Apart: Because your industry may be looking to lay off employees, start thinking of ways to set yourself apart from others that work in your company. Are there additional responsibilities you can take on? Do you have ideas to share? Make yourself even more valuable to the company.

4. Get Ready for Change: Someone once said the only constant in life is change. Once you realize that you can embrace it more easily. And just remember to put your faith in Jesus Christ because he is a steady rock you can always depend on.