WHY YOU SHOULD TITHE - EVEN IF YOU DONT GO TO CHURCH

Tithe (noun) - A tenth part of one's annual income contributed voluntarily or due as a tax, especially for the support of a religious institution.

Tithe (verb) - To contribute or pay a tenth part of (one's annual income).

One of the Biblical references for tithing can be found in Malachi 3:10. Many religions encourage a one tenth donation to the religious institution or to charity, but you don’t have to be religious to tithe. If you think about it, it’s a very small amount. If you donate 10% of a dollar to a good cause, that’s a dime. You still have ninety cents to use for other pursuits. Donating a tenth of your income to a religious or charitable cause is a good idea. Let me tell you why.

Contribution to Your Community
Although we may call it by different names, many of us tithe at our houses of worship. The funds are used for the upkeep of the church, mosque or synagogue, etc. But many religious institutions also double as social service agencies for the community, providing soup kitchens, food pantries, child care, elder care, and educational programs. When the parishioners donate their tithes, they are also contributing directly to the upkeep of their community.

Even if you do not attend services anywhere or subscribe to any religion, you can contribute your dime to a local or national non-profit organization working on an issue you are passionate about. Small regular donations can mean the world to a local non-profit. Do a quick Better Business Bureau and/or Google search to weed out fraudulent groups. Then take your dime and make a difference.

Whether due to religious obligation or social consciousness, your life improves when your community is doing better. And giving actually feels good.

Budgeting

Budgeting is not the second “b” word. When you realize where your money is ACTUALLY going, you can make better decisions about where it SHOULD be going. With the real numbers, you can adjust even the tiniest amount of money to do more of what you think is important.

When you decide to give 10%, it may be your first time. Your money may be as tight as a drum and you may need to reassess and readjust your spending to make everything fit. This is a positive opportunity to take a look at where your money actually goes, as opposed to where you think it went.

When I went to my nutritionist for the first time, she had me write down everything I ate and what time I ate it, for seven days. I wasn’t supposed to change or alter any of my eating habits just yet. We just wanted an accurate look at the calorie count, and the timing of my food intake.

Try doing the same with your money. For a week, keep a running tab of what you spend. Don’t change anything, just observe. Carry a small notebook, or make a list on your handheld device. When you get seven days of spending in black and white (or brown and yellow, on your iPhone) you can see clearly where your money is going. You can see where that lost second sock in the dryer money has gone.

For instance: if you get coffee and a breakfast sandwich from your favorite fast food coffee restaurant every morning, you spend about $5 a day, five days a week. You probably also get one weekend coffee to curtail that caffeine headache. This comes to about $28 a week, approximately $120 a month. Or, you can buy your favorite coffee at the grocery store, and make it at home. You can also cut back on some of the breakfast sandwiches. The remaining funds could be used for a utility bill, gas for your car, or tithing.

Drop a Dime on Yourself

Tithing or donating 10% of your income can help you to view and spend your money in a different way. This can also change how you spend money on yourself. Back in the day, your older relatives may have had a “Vacation Club” or “Christmas Club” savings account where they put a little aside periodically during the year so they could be ready for the holidays or that annual getaway. Nowadays, because of technology our parents and grandparents never dreamed of, transferring money and putting a little aside is easy to do.

When you decide to tithe and review your budget, you can determine how much you can put aside each paycheck for yourself. Remember that $5 a day spent at the coffee shop we talked about earlier? Could you skip a day and put $5 from each paycheck in a savings or money market account at your bank? What if the $5 was direct deposited into your savings account at the time you got paid, so that you wouldn’t even “miss” it? You can adjust your direct deposit at your HR Department, or in some cases, at your bank.

As these funds accumulate, you could use them for a vacation or holiday. You could leave it in the account, to be used for emergencies. Or you could let it grow into seed money for your home business or your new home. Once you take a closer look at where your money is going through tithing and budgeting, you can take control of it. And the sky is the limit.

Bonus: A Word about Banking

Banking is not the third “b” word. I will write more about this issue in a later post. Many of us are afraid of, or distrustful of banks. Because of this, many of us also stand on line for hours at a local bank or check cashing spot every payday, to cash a paper check.

Opening a bank account benefits you in many ways, including:

• the ability to direct deposit your paycheck, social security checks and/or tax return checks,
• faster, safer access to your money,
• the ability to transfer funds between your accounts, or to other people, online, by phone or at the ATM,
• electronic purchases with your debit card in stores and online,
• immediate online bill payments including utilities and your rent without paying an additional fee, but most importantly,
• you can eat lunch on your lunch hour on payday, instead of standing on line to cash your check!

If you don’t have a bank account, consider opening one so you can protect your hard earned cash.

Let’s Be Careful Out There.

WHEN THE PARTY’S OVER

After the holidays, you may have a hangover. However, your hangover may not be alcohol induced. You may open your credit card bills in late January or early February and get a spinning feeling in your head. Here are some black coffee, dry toast and a couple aspirin to help you through the post-holiday, bill opening season.

Open and Review Your Mail

Open all of your mail. Especially the bills. Discounts, rebates, coupons, time-sensitive legal notices and mistakes on your bill, usually come in the mail. If you don’t open and read your mail, you may be missing very important information or deadlines.

For instance, when credit card companies are sued and customers are asked to join the class action lawsuit, or notified of a refund, these must be done in writing. If you don’t open your mail, you could miss the good news right along with the bad.

Prioritize Your Bills

Anything having to do with your essential needs, including housing, food, utilities, car note, childcare must be paid before any other bills. Ask yourself if the bill in question, when unpaid, will leave you and your family in the dark, hungry or on a park bench. Pay those first. Collection agency calls for credit card bills can come daily. However, legal notices about foreclosure and housing court only come in the mail a few times before you lose your home. Small dogs bark incessantly. But the big dog only has to bark once.

Credit Card Bills

After the essentials are taken care of, move on to the credit card bills. If you are the average American household, you have four or more credit card accounts open. When you make a late payment, you may receive a late fee on your bill. However, a late payment can also cause your interest rate to go up on that card and your other cards. With the merger and buyout of many major banks and major department stores, many credit cards that were owned by two or three different banks are now owned by the same bank. Prioritize these payments, as well.

Highest Interest Rate Goes First

Pay off the one with the highest interest rates (“APR”) first. This is the most expensive credit you are using, so you want to pay it off first. Because of changes in the banking law over the past four years (the Credit Card Accountability, Responsibility and Disclosure Act of 2009 “CARD”), your interest rates are prominently displayed on your bills in big tall numbers. The higher interest rate cards are usually the department store or affinity cards. When you signed up, they gave you an incentive gift like some free miles or a teddy bear. However, you can use a major credit card at the same store, usually at a lower interest rate. Consider paying off the higher interest rate cards and closing them. Use your major cards instead. The interest rate is lower and the money is cheaper.

A Word on Transferring Balances

Some cards may offer to absorb the balance of another credit card at a lower interest rate. Please read the fine print on any such deal. The lower interest rate may be an introductory rate. Find out when it ends. Your interest rate may increase if you miss a payment or make a late payment. Everyone makes mistakes. Make sure you find out what the penalty rate is. You don’t want to get caught with the larger balance on a card with an increased or penalty rate. From the frying pan into the fire.

Second Mortgage/ Equity Loan
Some credit card holders opt to take a loan against their homes to pay their credit card debt. Up Side: The interest rate on such a loan will almost certainly be lower than the original credit card interest rate. Down Side: The home is now encumbered by additional debt. This is not the best option for paying credit card debt. However, this would be a decent choice for a family who is committed to making a serious change in their spending habits and need a fresh start.

When You Need Help

Don’t let shame or fear stop you from getting the help you need if things go horribly wrong with your bills. Scam artists posing as “credit repair” companies play on shame and fear to scam people out of whatever money they have left. You are not alone in your debt, many of your family members, neighbors and coworkers are struggling financially. Hold your head up, do your research and get the help you need. You can do a Google search on any credit counseling organization you decide to use. But it’s a good idea to make sure the organization is certified by the National Foundation for Credit Counseling (NFCC), a non-profit organization that monitors and certifies credit counseling organizations.

The Seven Year Itch

Your credit report, much like fine wine, gets better with time. Due to contract law, most bad debt “ages off of” (stops appearing on) your credit report in seven years. Some debt does not age off. Child support, back taxes and student loans don’t go anywhere. You must make arrangements to pay these off. Also bankruptcies and debt where the creditor has gotten a “judgment” against the cardholder, can stay on a credit report much longer.

Order and review your credit reports at least once a year. Its like an annual checkup for your money. If you've had a rough patch in your financial life in the past and you’ve steadily improved since then, that will appear on your credit report. This progress, ie., late payments followed by a series of regular and on time payments, can help prove to potential new creditors that you are back on your feet.

Let’s Be Careful Out There.

DROP THAT ZERO

A Short Primer on Personal Income Taxes

Most of us are taxed on a percentage of our income. When we “do our taxes.” we adjust the amount of income and pre-pay some of the taxes. When we take deductions, we are reducing the amount of income that will be taxed. Some examples of deductions are medical expenses, educational expenses and gifts to charities. When we take a credit, we pay part of the taxes we owe ahead of time. Some examples of tax credits are the Earned Income Credit, dependent child credit, tuition credit and disaster relief credit. Make sure to read the instruction booklet carefully. New deductions and credits are available every year.  Also look for new deductions and credits are when a new President is sworn in or re-elected.

After taking care of the deductions and credits, the income amount left over is used to determine how much tax we have to pay. There is usually a chart in the instruction booklet where you can use this “new” income amount to determine how much tax you have to pay. If you’ve paid more than the chart says you owe, they have to give you your money back, a refund. If you’ve paid less, you owe the money to the government.

Why You Shouldn’t File Zero on Your W-4
The W-4 is the form you fill out with your employer when you start working at that job. Many people claim “0” allowances so that they can get a large tax return check in February when they file their taxes.

What happens when you file “0” is that the government has no idea how many dependents you actually have. As a result, it taxes you at the highest possible rate. Each paycheck is taxed at the highest rate, so your paycheck is smaller. At the end of the year, when you file taxes and inform the government of your actual amount of allowances, it has to give you that money back. The government has been holding your money, all year, without paying you interest! This is large tax return check many people receive in February.

However, if you claim the correct amount of allowances on your W-4 to begin with, the government taxes you at the correct amount. Your tax return at the end of the year will be smaller. However, each paycheck is larger. If you’ve been filing “0” all along, filing 2 or 3 will feel like a raise! You can find the suggested amount of allowances in the instruction section on the W-4 form. You can change your W-4 at any time.

When tax time comes, all the deductions and credits normally available to you will still be available if you file a number higher than “0.” If you are a parent, head of household, or eligible for the Earned Income Credit, you will likely still receive a return, it just may be smaller.

Back Taxes
These are two words that you never want to see together! However, there are several steps you can take if you owe back taxes.

• Take advantage of tax amnesty programs which may be available in your area.
• Call the government tax agency directly and make a payment plan. This may not seem like a good idea. But the tax agencies actually have affordable repayment plans.
• Visit a tax professional. They will be able to help with the current back taxes. But they may also be able to help you re-file prior years’ taxes and find credits or refunds you may have missed. You can use these funds to offset your current tax bill

If you put your head in the sand and decide to do nothing about your back taxes, the government will contact you by mail. Open all of your mail. But definitely open all of your mail from the government. The letters usually ask you to make a payment plan. However, if you ignore these notices, the government can “attach” or “put a lien on” (take part of) your property or future tax return check. Please consider getting ahead of any tax issues before they get ahead of you!

Let's Be Careful Out There.

KNOW BEFORE YOU GO

The key to a successful shopping experience is research. Now, this may sound unappealing or boring. But you have to know the REGULAR price to determine whether you’re being offered an actual sale price. Believe me. The retailer is hoping you don’t know, or have forgotten, that the 50% off sales item was marked up 100% the night before. Making assumptions about prices based on the reputation of the store may also cause a problem. If you can, take time and walk through a new store and check out the prices. It may surprise you and cause you to change your shopping habits. For instance:

More Expensive at Dollar Tree
I flurve Dollar Tree. Not Family Dollar or Dollar General, but Dollar Tree with the green tree symbol in its logo. All three stores are doing very well on the stock market, along with the big box stores and TJX (more on that in a later post). However, Dollar Tree is the only one where everything in the store actually costs $1.

You may think that $1 each sounds like a good price for almost anything. However, there are many things that cost MORE at Dollar Tree than they would at a grocery store or big box store.

Dishwashing liquid regularly goes on sale for .89 at most major grocery stores. You may want to wait for the sale and grab a couple bottles there. 

Toilet paper is a penny wise/ pound foolish kind of thing. Yes. You can get a four roll pack of toilet paper at the Dollar Tree. But there are like three squares of paper on each roll. You may want to spring for the 1.09 roll of majority brand toilet paper at the grocery store. At 1000 “sheets” per roll, it will last longer than four rolls of the Dollar Tree stuff.

Allergy pills may be cheaper at a big box store. They will be in a larger quantity, but as long as you’re getting 30 for less than $6, you’re good.

Much cheaper at the Dollar Tree? Bulk candy and cookies. Just make sure you check the expiration date!

Cheaper at Whole Foods

Unfortunately, prices at so called "regular" grocery stores have skyrocketed to the point that there is not much difference between their prices and prices at specialty health food stores such as Whole Foods. But there are some categories of items that are actually less expensive at Whole Foods.

Soy products are generally cheaper at health food stores because the stores buy more varieties and in bulk. This includes soy milk, yogurt, ice cream (get the chocolate), tofu, etc.

Ground (non-organic) meat, ground turkey, ground beef and ground chicken is usually cheaper by the pound at Whole Foods. The organic meat will cost more.

Canned goods, like salmon, tuna and beans will be cheaper. The beans will likely be salt free. Just add some adobo.

Any specialty, health related, foods will be cheaper at Whole Foods. If you need anything gluten free, dairy free, anything with a sugar substitute, or a medicinal herbal tea like Kava or Valerian, they will be cheaper at Whole Foods.

Much more expensive at Whole Foods? To avoid sticker shock, stay out of the fresh produce and deli sections.

Bonus for Holiday Shoppers

If you are looking for a reasonably priced, easy to wrap, unisex, not-too-personal, office grab bag type of gift, consider a CD of holiday music. You can go to a CD store, a big box store. Or you can grab your laptop and burn your own special mix. However, many retail stores have their own mix of holiday music.

Over the past few years, Ive gotten holiday CDs from Victoria’s Secret (“Christmas Eve/ Christmas Morning”), RiteAid (“Stars of Christmas”), Starbucks (“Making Merry”) and even the Post Office (“Let It Snow” and “Letters to Santa”). They included a full range of artists from Tony Bennett to Eartha Kitt, Seal to Ray Charles, Paul McCartney to Vanessa Williams, Jesse Martin to Joss Stone, the Muppets to the Boston Pops. And other than the Post Office, there’s usually no line, no waiting, no electronic store stampede!

Do your research and have some fun!

Let's Be Careful Out There.

 

TOP TEN HOLIDAY SHOPPING TIPS

The Holiday Shopping Season is here. I want to do my part to help you get the most out of your shopping experience, and to avoid getting ripped off. The worst feeling (other than getting the least number of gifts under the tree... every year), is opening your bills on January 15th and realizing that you got jacked at the mall the month before. So here to help you, are the Top Ten Holiday Shopping Tips:

1. BLACK FRIDAY: AN EXPLANATION
The biggest shopping day of the year is so called Black Friday, the day after Thanksgiving. This was not named for African Americans, but if you are African American and want to claim it, go right ahead. Just don’t get ripped off during the celebration. Please remember, Black Friday is not a Holiday for the consumer. It’s a Holiday for the retailers. This is the day that retail stores put themselves financially "in the black." Because of internet holiday sales, which traditionally happened on Monday after Thanksgiving, (when people returned to work and shopped on the high speed internet at the job) they now also have Black Monday.

2. CRITICAL MASS
Because Black Friday is when the stores hope to balance their books before the end of the year, it is the worst time for you, the consumer, to go shopping. There is NO incentive for the stores to give good bargains at the beginning of the holiday shopping season. Their goal is to: 1. get you into the stores and 2. encourage you to pay as much as possible for something you kinda want. Don’t do it! You have to strike what my high school science teachers would call a critical mass. You have to hit the stores after the first crush and before all the good stuff runs out. You want to catch the stores when they are less cocky and wanting to clear their merchandise, but before they run out of what you want to buy. I would say December 10th or so.

3. SHOP FOR HOLIDAY NON-PERISHABLES DURING KWANZAA
The best time to shop for things you will use every holiday is AFTER Christmas, for the following year. Kwanzaa is an African American cultural holiday which emphasizes family values such as self-determination, faith, and cooperative economics. But most importantly, it is celebrated from December 26th to January 1st every year. This is the perfect time to buy your Holiday Non-Perishables. All the ribbons, gift boxes and wrapping paper; mugs, sweaters and dishes with snowmen, snowflakes and pine trees on them; artificial trees, Christmas decorations, angels, garland, those little glass balls for the tree; and anything red and/or green goes on deep discount immediately after Christmas. The stores are trying to get rid of this stuff. Take advantage of this windfall.

4. RESEARCH RESEARCH RESEARCH
Before you leave your house, ask your friends and family about items similar to the ones you want to buy. Buy a newspaper and comb the sales circulars. Walk through the stores and price your intended items. Make sure you know the regular (non-sale) price of the item before you go shopping. When you go back and make your purchase, you will be able to determine if you’re getting a good deal.

5. BRING A LIST
Make a list before you leave the house. Follow it religiously. Get the stuff on your list before you get anything else. Leave after you get what’s on the list. Reach home with no regrets and everything you need. Tell yourself you will get impulse, non-list items on the next trip. On the next trip, bring a list. Get the idea?

6. KEEP YOUR RECEIPTS
...and if you are buying something for someone else, give the gift receipt, which allows for returns if the product is defective or the wrong size...or just gawdawful and it needs to be returned. This is especially important for electronics. Stores pull out all the stops during the holiday shopping season. Some of the stuff they pull out may be broken.

7. FOR BIG TICKET ITEMS
Research Research Research! Get a copy of Consumer Reports magazine or get on the Consumer Reports website and research several models and versions of cars, jewelry, furniture, flat screens, computer or musical electronic items BEFORE you reach the store.
Keep all Paperwork. Receipts, Warranties, Instruction Booklets. Should anything go wrong, should you need a replacement part two years from now, or should you need to return it, you will need one or all of these pieces of paper to make things right. Keep all these documents in the same place, such as an unused kitchen drawer, or in a shoebox labeled “receipts.”
Use a Credit Card. (not for a car, a car loan will have a lower interest rate) This will gives you extra protection should you have a dispute with the retailer.
Cars: Cars usually go on deep discount in the winter in the Northeast. The weather prevents most outdoor aggressive sales tactics. Take advantage of this if you can.

8. LEAVE HOME WITHOUT IT...UNLESS
Use cash (keep the receipt!) or your debit card. This will keep you from buying expensive impulse items. You don’t want to face a nasty credit card bill surprise in mid-January. If you do bring that plastic, remember it is all about the interest rate. Use only one card. Use a major credit card and not the store card. Use the one with the lowest interest rate. If you use a credit card with 15% interest to buy a $500 item, for instance, the interest on that item is $75, along with whatever else is on your card. Miss a payment sometime in April, and the interest can skyrocket to a “default rate” in the high 20s%, maybe even 30%. Despite all of your good intentions, you will not be able to pay off the full balance before March. Try to leave home without it.

9. NON TRADITIONAL STORES
Office Stores, Houseware Stores, Grocery Stores, Mega Drug Stores, Book Stores, Health Food Stores and Craft Stores have sales during the holiday shopping season, but no crowds. Gifts from these stores will be unique, possibly cheaper and shopping at these stores will cause you less holiday stress. You may be able to get traditional gifts from the non-traditional stores, as well. For instance, you can buy certain toys at larger drug stores; small furniture can be found at office stores; some music can be found at bookstores; back massagers, foot massagers and foot baths can be found at some specialty health food stores. Make sure you research the prices before you go, so you don’t pay too much.

10. BUYING BLACK/ SUPPORTING SMALL BUSINESS
Please support ethnic, women owned and small businesses during the holiday shopping season. As we heard over and over again during the last election, small businesses stimulate the economy. Gifts from these businesses are often beautiful, one of a kind, and they may be more economical than gifts from larger stores. However, professionalism, quality and customer service are important regardless of where you shop. Any establishment that does not treat you as a valued customer and potential repeat customer has not earned the right to take your hard-earned money this holiday season.
 
Enjoy your shopping experience, whichever holiday you celebrate.

Let's Be Careful Out There.