Save Money | Miss Money Bee

By April Lewis-Parks

After a grueling winter of cold winds and snow, sunshine and the warmth that the summer months bring can’t come quickly enough. For all the fun and excitement that warm weather can bring, however, there is one caveat that no one likes to think about: rising energy costs. Utility bills tend to spike in the summer months as people have their air conditioning on full blast, and this can make it more challenging to stick to your budget, while also paying for all the other summer events you may have planned, such as concerts and vacations. As with any other type of expense, there are ways you can be savvier about your energy usage to keep cool and keep more money in your pocket.

1. Keep curtains closed

When you’re at work all day and your curtains are left wide open, the sun that is shining into your home can cause the temperature to spike dramatically and leave your house feeling like a sauna when you walk in. As a result, you are forced to turn the air conditioning on full blast or run every fan in the house to cool yourself down enough to sleep at night. To avoid this repetitive scenario, remember to close your curtains before you leave for work each day. Doing so can block the sun and leave your home warm, but not baking.

2. Invest in a programmable thermostat

There are some investments worth making, such as a high-quality appliance you’ll use a million times or a great pair of boots that can be worn to any type of occasion. A programmable thermostat should also be added to your list of great investments, because it can prevent you from being forced to run your air conditioning all day. Instead, you can set the thermostat to remain at higher temperatures while you’re at work, and then automatically lower before you return home.

3. Learn your AC unit

It’s time to get your hands dirty and clean out your AC unit to ensure it is maintained and running efficiently. Dirty and clogged air filters make your unit work harder to cool your house, which can leave you with a larger utility bill.

4. Eat more salads and cold foods

Preparing a hot meal during the summer time can not only leave you feeling heavier than usual, but the heat of the oven or stove can also counteract any fans or cooling mechanisms in your home. As a result, you might turn up your AC unit or run more fans, which translates to higher bills. To avoid this, focus less on warm meals during the summer and instead eat more salads, fruits and cold pastas.

By April Lewis-Parks

One of the most common reasons many people cite for failing to save money is that they make too small a salary to devote anything additional to a savings account. While stretching a small income can be challenging, it’s not impossible, and individuals who want to build a stronger financial foundation that gives them more freedom should seek out ways to improve their savings contributions.

An important step in developing a consistent savings account is to realize that it will take time and every little bit – even if it’s a small amount – does make a difference. For example, a recent article from Fox News noted that individuals who put $15 a week in a savings account for 25 years will wind up with $62,183, if the annualized rate is at least 8 percent. These figures should comfort individuals who only have a small amount to spare each pay period.

There are also other ways to build savings beyond the amount that is left over after all the bills have been paid. A common mistake individuals make is budgeting without a specific goal or plan in mind. By building a budget around savings goals, consumers can discipline their spending and determine areas in which they can afford to cut back. For example, individuals should sit down and examine how much they spend on discretionary purchases, such as eating out, dry cleaning, trips to the hair and nail salon and material purchases. They may find that a large portion of their paychecks go to these categories and leave them with little left over for savings. Individuals can take it a step further by switching to more affordable utilities providers and cellphone plans.

Simplify the savings process
Another obstacle to saving money is waiting until all bills have been paid to transfer money from checking to savings. Instead, consumers should also make a habit of paying themselves first. A budget will educate consumers on how much they can feasibly save while still covering their needs. So rather than waiting to transfer money to savings, automating a certain percentage of income to be automatically transferred to a separate account when they get paid can be helpful. This can lower the temptation of spending the money in a checking account on unnecessary items and also allow workers to save consistently.

By April Lewis-Parks

Two spring season common events are weddings and planning for college admission and they can be big budget busters.

“People tend to go overboard and then regret it later,” said Howard Dvorkin, CPA and founder of ConsolidatedCredit.org. Howard said wedding and college planning are much like shopping for Christmas presents – many people buy on impulse, then are in for a huge surprise when the bill comes due. According to surveys, the average afternoon or evening wedding in front of friends and family costs between $19,000 and $25,000. According to a survey by The College Board average price of tuition, fees, room and board, after financial aid and tuition tax credits are deducted, has reached $12,110 at public four-year colleges for in-state students and $23,840 at private nonprofit institutions.

“Parents need to think beyond the basics and prepare for the extras, because that is where people tend of lose track of their expenses,” Dvorkin said. Additional wedding costs usually include travel, a hotel stay near the church, as well as traditional gifts for the bridal party. “Like with everything else, these costs need to be assumed within reason,” Dvorkin said.

The personal finance expert said that unfortunately he has counseled too many families who have gone deeply in debt and came close to filing bankruptcy because they couldn’t bear the thought of telling their children to hold the expenses down.

But it’s not just college costs and weddings that endanger the family budget in the spring. The average family spends over $2,500 a year on summer vacation and another $3,000 or so just getting the children ready for school.

Is there a way to plan sensibly for these life-changing events? Here is some advice:

For wedding planning

· As soon as you decide on marriage, figure out your budget. Set a wedding date that will allow you and your family time to store up funds for wedding-related expenses.

· Do it yourself. Enlist the creative talents of relatives and friends who can help you make your wedding gown, create floral arrangements or even bake your wedding cake for you.

· Keep the wedding guest list down. Set a limit first and then create a list that falls within those guidelines. For example, first cousins may be invited, but second cousins not.

· Choose a morning or afternoon wedding. They’re less expensive than evenings affairs.

· If another wedding is being held within a few hours of yours in the same location, perhaps you may be able to share some of the costs of flowers and decorations.

· Holiday weddings are more expensive because you are competing for catering services, wedding and reception sites, D.J.’s, limousines, photographers and more. During holidays, these type of services tend to raise their prices, especially at Christmas.

· Keep an eye out for sales on items that you might need for your wedding, like decorations and favors.

· Before signing a contract with a photographer, be sure you will receive all the proofs from them. Some photographers keep the proofs and the only way you can get any pictures is by ordering them through the photographer at inflated prices.

For college:

· Tuition and room and board aren’t the only expenses to keep in mind for college bound children. Other major expenses include clothing, electronics, and supplies.

· Consider the cost of transportation for you and your child at college. Hub cities tend to cost less to get to. Smaller out-of-the-way campuses may be quaint, but the transportation costs may be more expensive.

· Many colleges offer widely varying meal plans. Offer to pay for the least expensive and have your child get a part-time job to make up the difference. There is nothing wrong with working to offset expenses as long as it doesn’t interfere with studies.

· Buy school supplies such as pens and paper at major discount supply stores. They tend to be less expensive than campus book stores.

· Try to find out what texts are needed for various courses and order them used when possible.

By April Lewis-Parks

Staying in shape while remaining fiscally healthy can be one of the most frustrating acts to balance when you’re trying to live on a budget. In order to stay healthy, you typically must shell out more money for fruits and veggies, which are notably more expensive than frozen dinners and quick and convenient processed meals. Throw the cost of a gym membership in there and you’re looking at a pretty penny. However, we all know that a healthy body can lower our costs on healthcare and mitigate potential illnesses in the future, so it’s important to focus on health and fitness in the present.

The good news is you don’t have to take a begrudging view of fitness if you know how to shave costs off your routine. In fact, you may not even need to spend hours circuit training at the gym if you’re willing to spend more time outdoors and focusing on creative workout routines. Doing so will allow you to save money, get fit, spend time with friends and meet some new people, so see the below suggestions for getting in shape before the summer begins!

1. Start a running or walking routine with a friend 

Working out with a friend can be a great way to spend quality time and keep each other motivated to push each person to the absolute limits. Make an agreement to jog a running trail three times a week or take a walk around the neighborhood to get in shape. It’s common to slack off or not work as hard when you’re on your own, but having a workout agreement with a friend will hold you accountable to someone other than yourself.

2. Sign up for a 5K

 If there’s one thing that will get you moving, it’s the thought of falling behind or wimping out on a 3.1-mile race. Signing up for a race – especially it it’s for a cause that means something to you – might motivate you to start running outside in preparation for the big day. In many cases, these races may also have a “running group” that you can train with, if you wish. If not, lean on your friends again and encourage them to all sign up. You can train together, push each other and celebrate your successes after the race!

3. Look for free classes 

Many cities offer free fitness courses – such as outdoor yoga, running programs or cycling classes – for residents, which can be a great way to learn a new routine and meet new people. If the classes aren’t free, many are offered at reduced rates, which may be more affordable than joining a gym.

By Tom Vastardis, CPA

Are you one of the millions of Americans who haven’t filed (or even started) your taxes yet? With the April 15th tax filing deadline less than two weeks away, here’s some last minute tax advice for you.

Stop Procrastinating. Resist the temptation to put off your taxes until the very last minute. Our office needs time to prepare your return, and we may need to request certain documents from you, which will take additional time.

Include All Income. If you had a side job in addition to a regular job, you might have received a Form 1099-MISC. Make sure you include that income when you file your tax return because you may owe additional taxes on it. If you forget to include it you may be liable for penalties and interest on the unreported income.

File on Time or Request an Extension. This year’s tax deadline is April 15. If the clock runs out, you can get an automatic six-month extension, bringing the filing date to October 15, 2013. The extension itself does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late-payment penalty if you have not paid at least 90 percent of your total tax by that date.

Don’t Panic If You Can’t Pay. If you can’t immediately pay the taxes you owe, consider some alternatives. You can apply for an IRS installment agreement, suggesting your own monthly payment amount and due date, and getting a reduced late-payment penalty rate. You also have various options for charging your balance on a credit card. There is no IRS fee for credit card payments, but the processing companies charge a convenience fee. Electronic filers with a balance due can file early and authorize the government’s financial agent to take the money directly from their checking or savings account on the April due date, with no fee.

Sign and Double Check Your Return. The IRS will not process tax returns that aren’t signed, so make sure you sign and date your return. You should also double check your social security number, as well as any electronic payment or direct deposit numbers, and make sure that your filing status is correct.