The Damage The Fiscal Cliff Tax Changes Will Do To Your Wallet – You’ll Lose Thousands

fiscal cliff tax changesWhat is going to happen on the 1st of January 2013 if the fiscal cliff is not resolved by Congress? How is the average taxpayer going to be affected by the fiscal cliff tax changes? The truth of the matter is that the middle class citizens of America are going to see their federal tax bills increase by thousands of dollars. There is also one critical mistake that we are all making that will make the fiscal cliff even worse for every person if we do not change our ways. I’m not talking about the things that are going on in Washington. There is a problem on Main Street in every city with the fiscal cliff as well.

The fiscal cliff refers to the President Bush era tax cuts were enacted in the early 2000s that are expected to expire this year. We have been kicking the can down the street for years and extending the expiration, but this year they are coming due unless Congress acts. Having these tax cuts expire will have a tremendous impact on every working American.

The Obama Administration has proposed eliminating $150 billion worth of tax breaks over the next ten years as part of his administration’s negotiations as a way to avert the dangerous fiscal cliff that the country faces at the first of the year. The tax cuts include deductions and tax breaks that are currently in place for fossil fuel companies, the valuation of company’s inventory levels, and changes in the tax rates on low capital-gains for some types of investments and real estate.

Here are some of the ways that you will be affected and what you can expect. There is also one critical mistake that we are all ignoring too that will have a very devastating impact on your wallet if not addressed.

Kicking The Can Down The Road

In December 2010, the United States Congress passed the Job Creation Act of 2010 which also addressed tax relief and unemployment insurance. The law also extended the Bush era tax cuts for an extra two years. It only applied patchwork solutions and exemptions to the Alternative Minimum Tax (AMT). So, can we expect Congress to continue to kick the can down the road and not pass substantial legislation to fix the problem? It is indeed a very real possibility. We could see them only fixing the fiscal cliff problem partially and passing new laws that address the problem for the next few years ago. Now is the time with the lull in the election cycle to tackle this and other hard problems that need bipartisan support.

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How To Save Money When Buying A Purebred Dog

How to save money buying a purebred dog

I have come to realize that there are a lot of things that you must consider before buying a purebred dog. Meet the newest member of the Coleman family, Winston, in the picture to the right. After much consternation and nail biting, my family and I finally decided to get a dog. This was a long, hard fought battle of when and what breed to get. When is the right time to buy a dog? I don’t think there is one. I’m really not sure what we were waiting for actually. I joked with a friend the other day that it was a little akin to waiting for the right time to have children. If you wait for the perfect … Read more

Three Ways To Get Out Of A Bad Financial Decision

We have all made mistakes in both our lives and with our finances. A bad financial decision does not have to completely cripple you financially though. There are a few things that you can do to try and get out of a bad financial decision. Here are a few tips that you may want to try instead of simply abandoning your debt which should almost never be your course of action. Look For Secondary Markets To Sell Your Mistake There are many secondary markets where you can sell your bad financial decision to someone else who might be able to afford it. If you are upside down on your car, you can try to sell it on Craigslist or to … Read more

Factors Why You Should Consider Buying A House

There are many benefits of buying a house.Buying a house is still part of the American Dream. There are several great benefits of buying a house that you should be aware of. While today’s housing market and the significant lack of available credit makes owning a home more difficult, it is not impossible to purchase a home. With good credit and a down payment, you can find a mortgage to purchase a new home. Get up to 4 offers at LendingTree.comThere are many benefits of buying a house.Renting should not be your default option when there are so many great benefits of buying a house.

Four Great Benefits Of Buying A House

Forced Savings – One of the greatest benefits of buying a house is that it forces you into a set savings plan. Every payment that you make on your mortgage builds equity in your home.

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Three Financial Mistakes College Students Make – Radio Interview

If you could go back to your former self and give advice, what would you tell yourself? Have you ever wished that you could go back to yourself as a college freshman and change your ways or tell you how to behave differently? I sometimes think back to what I would have told myself about the financial mistakes college students when I was in college. I should have cooled it with credit cards. I should have had a budget. I would definitely have done a few things differently.

Find out about the best financial tips that college students need to know and financial mistakes college students make when I discussed the issue with Heather Moore and Ben Brashen on the Brashenomics Radio Show this past week.

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Why Your Stay At Home Spouse Needs Life Insurance

Do I Need Life Insurance For My Stay At Home Spouse

Do I Need Life Insurance For A Stay At Home SpouseDo I need life insurance for a stay at home spouse? Too many families forget to purchase life insurance for a spouse that stays at home and takes care of the children.

This can be a tragic mistake should the stay at home spouse die unexpectedly. There are many things that he or she does that would need to be replaced right away such as caring for the children, cleaning the house, and other items.

Not having life insurance for a stay at home spouse could make a dramatic impact on your family’s budget and put you in a financial hurt. This is of course on top of your loss.

Do I Need Life Insurance For A Stay At Home Spouse

Do I need life insurance for a stay at home spouse? Here are a few thing to think about when you are considering purchasing either term life insurance or cash value life insurance for a stay at home spouse.

It’s Tough To Replace A Stay At Home Spouse

If you stop and think about it, a stay at home spouse provides a lot of services to the family. Should your spouse die unexpectedly, then you would need to hire someone to come in and fulfill those roles in your home. For example, think of all the cleaning that your spouse probably does on a daily bases.

Your stay at home spouse also most likely cares for your preschool aged children. If he or she should die, you would need to pay someone to do those things. The same could be true for meal preparation. Not having insurance to cover the cost of these items could leave you in a financial bind.

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