MAKE MONEY ONLINE POSTS: 04/05/16

الثلاثاء، 5 أبريل 2016

What Happens If You Don’t File Your Tax Return?

The old saying goes there are only two certainties in life: Death and Taxes.

What happens if you file your taxes late

We know we can’t cheat death, but did you ever wonder what happens if you file your tax return late? Or even worse, you don’t file your tax return at all?

Frankly, I’m too scared to find out what would happen if I didn’t file my taxes .

Just in case you ever flirted with the idea, here’s the penalties you face from the IRS.

If you already missed the boat, here are some options if you missed the tax deadline.

Warning: You don’t want to mess with the IRS. Depending on the nature of the actual return, you are either faced with paying interest or even worse, penalties. Consider, at least, filing a tax extension.

When Are Taxes Due in 2016?

Update: The tax filing date for our 2015 taxes is April 18th, 2016. Emancipation Day is April 16th which falls on a Saturday. The observance day for this will then be pushed back a day to April 15, SO we get an extra few days to ~~procrastinate~~ fill out our forms.

Interest When You File Tax Return Late

Interest on underpayments or over-payments runs from the extended due date of the tax return, i.e. April 15th of any given year. Regular interest is set by statute, but underpayment incurs a 1% premium rate, compared with the rate of interest that will be paid by the IRS on over-payments or refunds.

Basically, expect to be paying more interest in you owe money to the IRS, versus if you paid too much. If you are owed a refund, you’ll still earn interest on the amount entitled to you, just at a lower interest rate. It’s kind of like getting a loan from a bank versus how much they pay in their savings accounts.

Penalties When You Don’t File Tax Return

Penalties may be categorized as failure to file or failure to pay penalties which will automatically assessed by the IRS, and as an underpayment that are related to some negligence or intentional fault of the tax payer.

The failure to file or (FTF) penalty is assessed by the IRS at a rate of 5% per month or partial month up to a 25% maximum. The failure to pay (FTP) penalty is assessed by the IRS at a rate of 0.5% per month or partial month up to a 25% maximum. If both the FTF and FTP penalties are assessed, the FTF penalty is reduced by the FTP penalty.

Example: A tax payer files her a return 39 days after the due date. Along with the filing of the return she remits a check for $6,000, which is the balance of the tax owed. Therefore the total FTS and FTP penalties are $600, computed as follows:

FTP penalty, .5% times $6,000 times two equals $60.
FTF penalty, 5% times 6,000 times two equals 600.
FTP penalty penalties run concurrently minus $60. Total penalties, FTF and FTP equal $600.

The FTF penalty of $600 is reduced by the FTP penalty of $60 making the adjusted FTS penalty $540. Then adding the FTP penalty of $60 still due even though it reduces the FTF penalty makes up total assesed penalty of $600. Still confused? If so, easiest way to avoid this is to pay your taxes!

As mentioned there are also underpayment penalties owing to some fault of the tax payer. However there are also the following penalties, listed in order of their severity.

Criminal fraud. This is simply tax evasion, which is illegal. If convicted of this penalty the tax payer will be subject to heavy court determined fines, imprisonment or both (see pic below for an example).
Civil fraud: This is essentially tax payer fraud that does not rise to the level of criminal fraud. If imposed, the penalty is 75% of the portion of tax underpayment attributable to fraud.
Negligence: This accuracy related penalty is imposed if any part of the underpayment, due to tax payer neglect, or to disregard of the tax rules and regulations without the intent to defraud. The penalty is 20% of the portion of the underpayments attributable to the negligence.
Frivolous Return: A frivolous return is one that omits certain information necessary to determine the tax payer’s tax liability, such as her Social Security number. Usually, such a return is filed by a protester who is attempting to pester the IRS and make it’s job more difficult. The penalty is $500 for each frivolous return filed.

Filing Tax Return Late Example

Let’s look at another example. Charles filed a timely tax return but is later required to pay an additional $15,000 in tax. This amount, 6,000, is attributable to the tax payer’s negligence. The negligence penalty will be a 20% penalty applied to the negligent component. Therefore, the total amount of penalty imposed on Charles is $1,200. 6,000 times 20%.

Don’t Forget The Tax Extension

If it’s getting close to the wire and you still don’t have all your tax information together, you still can file a tax extension. The key on the extension is paying an estimated tax in the event that you owe. If you haven’t paid any tax throughout the year, or not enough; then the same interest and penalties would apply.

If you can’t pay your taxes, you still have options. As a last result, you could pay your tax with a credit card. Don’t assume it’s as convenient as it sounds.

How Do You File Taxes After It’s Too Late?

When you finally realize that you haven’t file your tax return, it’s best to file sooner than later (obviously). You’ll want to collect all your tax documents for the years that you didn’t file. Yes, that’s a lot of paperwork to collect, but remember that you are dealing with IRS. The more you can find the better.

If you filed an extension AND paid at least 90 percent of your actual tax liability by the due date, you will not be faced with a failure-to-pay penalty if the remaining balance is paid by the extended due date.
SPECIAL CIRCUMSTANCES: You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.

If taxes seem like advanced chemistry to you, then hire a tax professional (CPA preferred) to help you through the process. Be ready to pay some or all of the back tax that is owed. If you can’t afford it immediately, you should be able to strike a deal with the IRS. Remember, the IRS is not a “four letter” word. They will work with you if you show you are willing to cooperate.

File Your Tax Return and Avoid the Headache

What Happens If You Don't File Your Tax Return?

Failing to file a tax return and pay your respective tax bill can be of serious consequence. There are have been many high profile cases of individuals who failed to pay their appropriated tax bill.

If the big names can’t cheat the IRS, why do you think you’ll get away with it? Just ask our man Wesley.

Morale of the story: File your return and pay your taxes.

How to File Taxes on Time

Not filing a tax return is a terrible idea unless you want to hang out in prison with people who never filed their taxes like Wesley Snipes.

Avoiding that fate is pretty simple, fortunately. All you need to do is get your documentation together and file your taxes before the tax filing deadline goes by.

You could print off the tax forms from the IRS website, grab a pen and your favorite calculator, and get to work on calculating your return. But why would do that with so many great software options available to not only file an accurate tax return, but also guaranteeing you get your maximum return?

Here is a great option:

TurboTax

TurboTax is the leader in filing your tax return with software. You used to have to buy TurboTax at a retail store, but they have grown their web tools significantly and you can file your return 100% online. (You also get the option of downloading the software to your computer or using their mobile and tablet app options as well.)

TurboTax comes in several editions:

a free edition for Simple / 1040EZ Returns
a Deluxe edition which is the best option for most individuals and families
a Premiere edition for those with investments and rental property
and a Home & Business edition to knock out both issues at the same time

Simply select the version that best fits your needs — hopefully you need Premiere because you’ve been investing for your future — and the software asks you questions along the way to fill out your tax return.

It’s incredibly simple and can save you hundreds of dollars compared to using an accountant. Plus, TurboTax comes with an Audit Support Guarantee so you don’t have to face an audit alone.

H&R Block

I know several people that still feel antsy over using TurboTax and would prefer a more traditional tax service. Well you cannot get more traditional than H&R Block. What sets them apart from TurboTax is that if you have a serious problem you can always save off your work and head down to a local H&R Block office. The availability of that support makes them a great option.

H&R Block editions include:

Free edition for simple federal tax returns
Basic – great for people have have slightly more complex returns.
Deluxe – for most people this has the best value of features
Premium – Geared toward small business owners and those with rental property.

Once you are on the site you can select which version meets your needs. If you are not sure you can start with the free edition and work out which edition ends up being the best for your needs as you go.

The whole process is very well broken down and filing with H&R Block gives you the comfort of the larger brand,

Filing your taxes online is easy. Get started with TurboTax or H&R Block and avoid all of the late fees, penalties, and investigation caused by missing the tax filing deadline.

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Can’t Afford Home Internet? This New Program Could Help

A recent Federal Communications Commission decision could help you get free internet or phone service.

The FCC approved a plan last week to expand an existing phone subsidy to include broadband internet service.

Since 1985, the Lifeline program has provided a discount on (then landline) phone service to low-income households.

In recent years, the service has grown tremendously as a number of low-cost and prepaid cell phone carriers have come on board. The FCC has been working since 2012 to expand the program to include internet access, and last week’s decision finally set it in motion.

The program provides a $9.25 per month discount on services. With this expansion, participants can apply the discount to:

Landline phone service

Mobile phone voice and data service

Broadband internet service

How to Apply

You’re eligible for the service if you have an income at or 135% below the federal Poverty Guidelines — or participate in one of several government assistance programs (list of programs here).

So a family of four in most states is eligible with an annual household income of $32,805 or less.

You’ll apply through your service provider (not with the government). Start by finding a Lifeline Service Provider in your state.

You’ll need proof of income or participation in a qualifying program. See what qualifies as proof here.

Only one discount is allowed per household.

So, you can get a discount to use towards a landline, mobile phone or broadband service; OR you can apply a single discount to a bundle that includes more than one of these.

If you live in a household with multiple adults, but have separate income and expenses (e.g. in an assisted living facility or, in some cases, roommates), you could be eligible for separate Lifeline discounts.

Learn more about your eligibility here.

What You’ll Get

The program provides a minimum $9.25 per month discount, but some providers offer additional benefits under the program.

Check with your service provider to determine what the Lifeline program can offer you.

For example, programs through Access Wireless and Assurance Wireless provide customers with a free wireless phone and free monthly allotment of minutes and text messages.

Major service providers like AT&T, Centurylink, Verizon and T-Mobile participate, but the service is discounted, not free.

The discount is less effective with these providers, as a typical monthly bill could be between $50-$100 per month. A $9.25 discount doesn’t really make a huge dent.

Regardless of your provider, you won’t be shortchanged on service.

The FCC plan sets monthly minimums of available broadband usage, mobile data and minutes, so your discounted service will meet basic standards.

These monthly minimums are:

150GB of broadband usage

500MB of mobile data, increasing to 2GB by the end of 2018

500 minutes of mobile voice, increasing to 1,000 by the end of 2018

Recent Lifeline Program Updates

The program came under fire a few years ago because of lax oversight and lack of compliance with the one-per-household rule.

The program was reformed in 2013 with stricter proof-of-income requirements and greater oversight.

Your Turn: Have you ever participated in the LIfeline program?

Dana Sitar (@danasitar) is a staff writer at The Penny Hoarder. She’s written for Huffington Post, Entrepreneur.com, Writer’s Digest and more, attempting humor wherever it’s allowed (and sometimes where it’s not).

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Considering a For-Profit College? You Might Want to Read This First

Whether you’re a high-school junior eagerly anticipating college, or a busy mom who wants to go back to school, deciding which educational institution to attend is a big decision.

Not only do you want to find a program you’ll enjoy, but you also want to ensure the money you spend will have a good return on investment.

Though choosing a college is a highly personal choice, a recent infographic from Yellowbrick highlighted one stat everyone should take into account…

The top 10 colleges whose students owe the most — and, more specifically, the one quality seven of them shared.

The Schools Whose Students Incur the Most Debt

Here are seven of the 10 schools whose students owed the most in 2014: University of Phoenix, Walden University, DeVry University, Capella University, Strayer University, Kaplan University and Ashford University.

Notice a common thread?

They’re all for-profit schools.

Infographic from YellowBrickProgram.com

Crazy, right? I was appalled to see University of Phoenix’s students alone owe $35.5 billion.

Here’s how that came to be.

The Shady Story of For-Profit Colleges

As the name implies, these schools are businesses, and so are more expensive than their nonprofit counterparts.

“Tuition and fees at for-profit colleges averaged $15,130 in the 2013-2014 academic year,” reports U.S. News.

“That’s compared with $3,264 at two-year public colleges for in-state students and $8,893 at four-year public colleges for in-staters.”

The higher cost might be palatable if students got a solid return on their investment… but they don’t. Instead, they spend more money and take out more loans — and end up unable to pay them back.

“Students at for-profit colleges represent only about 13% of the total higher education population, but about 31% of all student loans and nearly half of all loan defaults,” the U.S. Department of Education reports.

Nearly half of all defaults? What?!

It might be due to the population these schools target through deceptive marketing campaigns, and because it’s harder to get a job with a degree from a for-profit school.

“Attendees of for-profit colleges are likely to be older and have lower incomes,” The Atlantic reports in an article aptly titled “The Empty Promises of For-Profit Colleges.”

“These students are less likely to complete their degrees, have a higher risk of living in poverty, and have difficulty finding jobs after school.”

“Applicants with business bachelor’s degrees from large online for-profit institutions are about 22% less likely to hear back from employers than applicants with similar degrees from nonselective public schools,” adds U.S. News.

The situation is so dire that some schools have been taken to court for false promises. Corinthian Colleges and Vatterott College lost cases brought against them.

So if you’ve been considering attending a for-profit college, I hope these numbers urge you to take a deeper look.

I’m not saying it’s impossible to find success with a degree from a for-profit school, but I am saying it’s imperative to do thorough research.

Before thinking you don’t have another choice, look into scholarships and financial aid; alternative schools; community, free or best value colleges; apprenticeships; and online programs through nonprofit universities.

Or check out these fast-growing and high-paying jobs that don’t require a college degree.

Because education is priceless, but college isn’t always worth the cost — especially at a for-profit school.

Your Turn: Would you — or did you — attend a for-profit school? We’d love to hear about your experience!

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

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10 Pieces of Financial Advice for Newly Married Couples

A few weeks ago, I was attending a wedding where I’ve known the groom for about 20 years. I wasn’t one of the groomsmen and didn’t know all of them, but I was hanging out with them for a bit.

The groom introduced me to them as a writer, and the usual questions followed: What do you write? Where is it published? You get the idea. Upon realizing I was a personal finance writer, one of them grinned and asked me the million-dollar question.

“Hey, got any money advice for newlyweds?”

I thought about it for a few seconds and simply offered up the first item on this list, which was received pretty positively by the group, but the conversation moved on from there to other topics.

The question stuck in my head, though. What money advice would I give to newlyweds? This year, I know of several couples that are getting married, including one couple to whom we’re close enough that a member of our immediate family is in the wedding party.

This article is for all of them, particularly B. and C., B. and E., and W. and A. This comes from my own experience of more than a decade of marriage, interviews and conversations with couples who have been married for many more years than that, and countless personal finance books that have passed in front of my eyes. Here are 10 pieces of very valuable money advice for newly married couples.

#1: Never, ever, ever hide a dollar of spending from each other.

If I had to give one piece of advice to married couples, it’s this. Never, ever, ever, ever hide a single dollar of spending from each other. Period.

Don’t get me wrong, I think both members of a married couple should have some pocket money that they can spend freely, but that money should be fairly limited and the total amount should be clear to both people. Once you step outside of that “pocket money,” you’re almost always going to be causing financial and, eventually, marital problems.

If you have a “hidden” credit card, you’re making a giant mistake. If you’re taking money quietly out of the ATM and hoping your spouse doesn’t notice, you’re making a giant mistake.

Why? Your spouse is assuming and planning as though all of the bills are on the table and that money isn’t vanishing from the checking account. The financial plans you’ve made together, whether it’s the big things like saving for a house or for retirement or even the little things like paying bills or buying groceries, are reliant on the money you expect to be present being there.

If you’re secretly pulling out more and more money for things like hidden credit card bills or hidden hobbies or hidden shopping trips, you’re not only damaging those plans, you’re also damaging trust.

It’s never, ever worth it unless you’re intentionally on the way out of the marriage.

Now, again, this does not mean you need to reveal every dime you spend at every moment to your spouse. What it does mean is that you need some sort of clear limit on your individual spending. Perhaps you can agree that you’re going to each have $100 a month (or more or less, depending on your situation) to spend on things you want as well as gifts for each other, and that money can be spent without question or even a second thought. If you’re going beyond that limit, then a conversation needs to happen.

Related: 10 Red Flags of Financial Infidelity and What to Do About It

#2: Talk about your shared goals as often as possible.

Speaking of shared goals, it’s vital that you’re on the same page with regards to what goals you have and how your income is working toward those goals. If you’re not working on the same goals, then you’re going to be literally working against each other in terms of your use of money and time, which will hold you both back from what you want to achieve.

For example, let’s say one of you is focused on retirement savings, while the other person is all excited about saving for international travel. If you’re both simultaneously pulling from the same pool of money for this, neither one of you is going to reach your goal with any speed.

The best approach is to sit down together and figure out goals that you share, then figure out a plan to work toward those goals. It might not be an easy process. You might not even know for sure what goals are most important to you. That’s also going to be part of the conversation.

My suggestion for a great conversation about goals is to simply talk about what each of you would like from your life in the next five years, then the next twenty years, then for the rest of your life. What would you like your life to look like five years from now (being at least somewhat realistic)? What about ten years or twenty years? What about in your old age?

Then, look for areas where your visions overlap. Those, right there, should be your goals. Make those goals central for both of you, then develop a plan for making those goals happen.

Remember, though, this isn’t a one time thing. Your goals and priorities will change, both individually and mutually. Revisit this conversation regularly and make sure that you continue to be focused on your shared goals. Don’t be afraid to let some goals fade away as you change both individually and mutually, and don’t be afraid to pick up new goals, either.

#3: Your spouse is going to really tick you off sometimes. Forgive him or her.

It’s going to happen. You’re going to disagree. You’re going to see traits in your spouse after living with him or her for five years or 10 years that really annoy you.

It’s even easier to get lost in those flaws and to become negatively obsessed with them. It happens. You get stuck on some little flaw and it grows and festers and becomes overwhelming.

Maybe your husband leaves his clothes out on the floor in the bedroom. Maybe your wife has a bit of a bossy streak. Maybe your husband dotes more on his daughter and is more strict with his son. Maybe your wife likes to watch endless reruns of her favorite television show seemingly all of the time.

Don’t get obsessed with the flaw. Instead, think about the abundance of things that your spouse does well. Focus on all of those things that you love, then find it within yourself to forgive the flaws.

If your husband leaves out his clothes, just toss them in the basket for him. If your wife likes to be bossy sometimes, go along with it when the things are unimportant to you. If your husband is lax on one of your children, step up a little bit and be more disciplined with that child if needed. If your wife likes watching reruns, read a book instead while cuddling up next to her.

Forgive those flaws. Find a way to live around them. Focus on the positive traits instead. You’ll be far better off.

#4: You’re going to get old. Start planning for it now so that it’s not a horrible scary process when you’re most of the way to retirement.

No matter how young you are right now, you’re going to eventually be old. It’s going to become a challenge to continue to work and you’re going to want a few years to be retired and enjoy life before your health fails.

The tricky part is that the younger you are, the easier it is to make that retirement period go smoothly. You can save just a little starting in your twenties to make retirement easy, but if you wait until your forties or fifties, you’re going to have to save a lot more of your income.

So, think about what you want from your retired life and talk about it with your partner. Then, start saving. Which brings us to my next point…

#5: Both of you should save for retirement in your own retirement plans.

When you start digging into retirement savings, you’re probably going to find that one of you has a much better retirement savings plan at work. One (or both) of you may not even have a retirement plan at work.

Given that, it can be really tempting to just have one of you do all of the saving for retirement to take advantage of that superior retirement offering.

Don’t fall into that trap.

The reality is that there may come a point where you’re no longer married, and in that situation one of you will be without a retirement plan and will really wish you had one. You might get some of that money in a divorce, but there’s no point in risking that.

Your best approach is for each of you to have a retirement account.

Each one of you should jump into a retirement account on your own. If you have a plan at your workplace that offers matching funds, use that plan. Otherwise, open up a Roth IRA for yourself and start saving.

You should each be targeting a savings goal of 10% of your individual income in your individual plans, wherever they may be. If you do that and you start before age 35 or so, you’ll both be fine in retirement, whether it’s together or separate.

Related: Are You Gambling With Your Retirement?

#6: There will come a time where you will likely support your spouse for some reason or another. Come to terms with that (and plan for it a bit, too).

In 2008, when I made the decision to go full time working on The Simple Dollar, my wife and I knew there was a risk that it would fail and, in that situation, she would be the primary provider for the family for a while. Thankfully, the site took off so that didn’t happen.

In 2010, my wife took most of a year off thanks to the Family Medical Leave Act, meaning she spent most of a year without pay. I paid for our health care with my income and we just lived pretty lean for a while.

In 2014, my wife started working toward her masters degree, taking classes on the weekends and summers and on some weeknights. It’s a little expensive and it means that I’m taking on a higher percentage of the parenting burden than I once did, but in a year or two she’s going to be in amazing career shape.

In a year or two, I’m strongly considering going back to school for a masters degree myself, likely in my spare time as I continue to write for The Simple Dollar.

In each case, one partner’s career situation changed the relative financial burdens (and other burdens) in our marriage. It happens. Sometimes your partner will go through a challenging employment patch. Maybe your partner will want to go back to school. Maybe you will want to be a stay-at-home parent for a while, or to homeschool, or something else entirely.

It’s going to happen. Don’t be frustrated by it. Be glad that you can be there for your partner when changes happen, and be glad that your partner will be there for you when those changes occur. Because they will occur.

#7: Start an emergency fund. Now. You’ll never regret it.

First of all, what exactly is an emergency fund? It’s simply cash put aside, usually in a savings account, for life emergencies. An emergency fund can step up during a job loss, during a car breakdown, during a family emergency, or for almost anything else that comes along unexpectedly and demands money.

Why not use a credit card? The biggest reason is that many emergencies make a credit card no longer useful. Identity theft. A stolen wallet. A bank cancelling your card or reducing your credit limit. Those things can be real emergencies and a credit card won’t help you. Cash is king. Cash will get you through.

So, start building one. Set up a savings account with both of your names on the account – ideally at a bank that isn’t your normal bank so that it’s a little bit harder to access on the spur of the moment – and set up an automatic transfer into that savings account. Make sure it’s not incredibly easy to get into that account – you should be able to access it, but not at a moment’s notice with a card in your wallet. That keeps you from tapping it in a moment of temptation.

The account will slowly grow over time. Just leave it alone. Use it only when you need it.

With an emergency fund, an unexpected problem won’t turn into a crisis. It won’t turn into a fight. Instead, you have the money to deal with it and life will go on.

Related: 10 Ways to Trick Yourself Into Saving Money

#8: You don’t need as big of a house as you think you do.

Many newly married couples start thinking quickly about buying a big house to live in. They have visions of some well-marketed version of the American dream that involves the big beautiful house in the perfect neighborhood with the two and a half kids running around in the yard…

The problem is that the “dream” is expensive. The bigger the house, the bigger the bills. It means a bigger mortgage. It means bigger utility bills. It means more insurance. It means higher property taxes. It means higher maintenance costs.

Another problem is that a big house usually just winds up being a bunch of storage space for your stuff. Most people end up using only a few rooms in their house regularly – their bedroom, the kitchen, their primary bathroom, and maybe the living room where the television and/or computer is. The rest end up being used for storage or set aside for guests.

It’s more space to fill up with stuff, and stuff is expensive.

Instead of dreaming about and shopping for a huge house, go small. Go really small. Look for an inexpensive small home, spend a little more to fix it up the way you want, and keep your bills low. You’ll find it much easier to be able to afford to do what you want in life.

Related: Why You Should Buy Less House Than You Can Afford

#9: You don’t need as new and shiny of a car as you think you do.

The arguments made above in favor of a smaller house also apply to your cars. A shiny new car is expensive. It means a higher car payment. It means higher insurance, too. Those bills really add up.

In most situations, the best bang for the buck in terms of a car purchase is to buy a late-model used car from a reliable manufacturer, driving it until problems begin to mount, then replacing it with another late-model used car from a reliable manufacturer. (I trust Consumer Reports when it comes to identifying reliable manufacturers and look at Toyotas and Hondas first.)

This plan allows you to have lower car payments when you’re actually paying off the car, then you have a few years without a car payment. During those years, put those “car payments” into a savings account so that when it’s time to replace that car, you’ll have enough cash to either make a giant down payment or to pay for the car in its entirety. Get on that cycle and you’ll never have a car loan again.

Establish this car-buying cycle together and you’ll end up putting aside a pretty small amount each month into savings and you’ll never have a car payment again. You’ll also have reasonable insurance bills to boot.

Related: Five Things You Could Afford If You Don’t Buy That New Car

#10: Spend non-passive time together as often as possible.

This final tip is all about the feeding and care of a marriage. The reality is that half of all American marriages end in divorce. That’s a painful statistic, but it’s reality.

Another reality: Divorce is expensive. Lawyer bills, court fees, rapid changes in lifestyle and housing… those can be very, very expensive.

One of the best financial moves you can make as a married couple is to simply keep your marriage strong. If your marriage is strong, you won’t get a divorce, and that’s going to be one of the best things you can do financially.

How do you work on your marriage? The best thing you can do is spend time together, preferably time that isn’t spent on passive things like watching television. Do active things together. Talk to each other often.

Sarah and I make it a point to have at least a few healthy conversations each and every day. Yes, there are days where we don’t get much face to face time until after the kids are in bed in the evening, but at that point we’ll always talk about our respective days. We talk about goals. We talk about the state of the world. We talk about the things in the world that are on each of our minds.

We also do a lot of things together. We play board games. We go for walks. We exercise a little. We work on projects around the house.

One of our favorite things to do together is housecleaning. We’ll both spend 20 minutes cleaning the kitchen and living room at the same time, so we talk together during the entire cleaning period. It’s a surprisingly effective way to bond, because not only are we having a great conversation, we’re both working toward making the house better for all and we know that our partner is also helping.

Do things together. Set aside time for it if you need to, which may be necessary if you have children. Doing things together can become the glue of your marriage.

Final Thoughts

A marriage can be a wonderful thing. Having someone in your life that you can rely on, who genuinely loves you, and who is making life choices that benefit you as well is a life-changing and life-affirming thing.

However, a marriage isn’t an automatic thing. It’s not always going to be easy, and money is often one of the biggest challenges in marriage.

If you use these ten pieces of financial advice and take most of them to heart, you’ll find that the financial problems (and some of the other challenges) in your marriage become much easier to handle.

Good luck!

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Could This Quick Quiz Help You Find Your Dream Job?

When I see Beyonce or Garth Brooks perform, I think to myself: They’re so good — it’s like they were born to do this.

The same thought might occur to you when you see your friends and family at work: They were born to fix engines, teach science or bake cupcakes.

But what about you? Is there something you were born to do?

Chris Guillebeau thinks so.

The author, entrepreneur and world traveler believes everybody has something they’re born to do… and he wants to help you find it.

What Were YOU Born to Do?

In his new book “Born for This,” he shares inspiring stories of people who’ve found their dream jobs, as well as actionable tips for forging your own path.

And he’s created a free online quiz based on the book to help you start your journey to career bliss.

It takes less than five minutes to complete, and asks questions like “What’s more important to you: time or money?” and “Where do you prefer to eat lunch every day?”

At the end, it reveals your career type and ideal workstyle, organizational structure, workplace atmosphere and means of motivation.

Then it describes the work you were born to do, and offers tips for getting there.

I’m an “independent creative,” according to the quiz. (No big surprise there!)

I’m best suited to “a solo career” as an entrepreneur, artist or writer, freelancer… or any role where I “can be both self-empowered AND self-employed.”

Tips-wise, the quiz recommended I negotiate maximum flexibility with my employer, create independence through a side hustle and schedule time to work independently.

Check, check and check!

Based on your results, the following posts might be helpful:

Which Job is Right for You? How to Research Different Careers and Employers

Which Job Will Make You Happiest? How to Pick a Career You’ll Enjoy

29 Smart Ways to Make Money on the Side in 2016

Working Alone: 22 Independent Ways to Make Money as an Introvert

Starting a Freelance Business: Here’s What You Need to Know

Never Wear Pants Again: 103 Ways to Start Making Money at Home

And of course, don’t forget to check out careers here at The Penny Hoarder.

But first, click here to take the quiz and discover how you can be more like Beyonce.

(Just kidding — no one will ever be like Beyonce. But, we can still strive to create careers to suit us as well as hers does!)

Your Turn: What do you think you were born to do?

Disclosure: You wouldn’t believe how much coffee The Penny Hoarder team goes through. This post contains affiliate links so we can keep the grinds stocked!

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

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Two-Sided Coin: Should You Always Buy a Used Car?

This is the second in a series of posts called the “Two-Sided Coin,” where TSD’s Jon Gorey and Holly Johnson take opposing viewpoints on a number of personal finance topics.

JG: I’ll Never Buy a Used Car Again

Most personal finance experts, including we here at The Simple Dollar, tend to recommend people buy late-model used cars to get the best bang for their buck. It’s true that a car’s value depreciates substantially the minute you drive it off the lot, which makes it feel like you’re paying for something imaginary and worthless. However, keep in mind that those numbers are often exaggerated: A vehicle loses 30% off its sticker price in the first year — but when was the last time you paid anything near the sticker price for a new car?

In practice, a new car — with the right incentives and rebates — can be a better deal than a used one. I know many TSD readers will probably want to set my new car on fire for saying as much, but let me share a story.

In my 20s, I only drove very used cars, and they were almost all a catastrophe waiting to happen. By 2003, I was driving a 14-year-old Saab 900S, which I’d bought used for about $1,500 in cash a couple of years earlier. It had probably cost me twice that much in repairs over just two years, not including the psychological damage that accompanies stalling out in the middle of an intersection on more than one occasion.

I’d had enough: I was going to buy my first new car, with a warranty and everything.

I went to a big Honda dealership and negotiated a good deal on a bare-bones 2003 Honda Civic, in dark green. It was the teaser deal they had advertised in the newspaper — something like $10,500, no power windows, possibly without air conditioning — and after some wrangling I got them to honor it. But as I was signing the contract, they came back to say they were all out of green ones, or even my second choices of grey or blue; they only had a white one left in the stripped-down trim (which… yuck) and it would be a week or more before they got any others in.

They made some calls and it turned out there was a similar green one at the used lot across the street, a 2002 model with about 20,000 miles on it. We went over and it was essentially the same car, so I said I’d take it. Except they insisted the price was firm at about $11,400.

I was incredulous. “You just agreed to sell me a brand-new Civic for $10,500. Why would I pay almost a thousand dollars more for a used one?” I asked.

It all came down to dealer incentives. They were willing to take a small loss on the new one to get a juicy sales incentive from Honda headquarters. Hondas, meanwhile, hold their resale value quite well, and their used division couldn’t sell the 2002 model for any less without taking a loss.

So no, buying used is not a guarantee that you’re getting a better deal.

Photo: Commonwealth Motors via Facebook

What’s more, the first three to five years of a vehicle’s life are usually issue-free. (And if there is an issue, it’s likely covered by the warranty.) When you buy a car that’s four or five years old, however, you’re getting in just at the wrong time. The 60,000-mile threshold often requires some expensive routine maintenance, and many cars start to decline irreversibly after 100,000 miles, requiring more and more maintenance and repairs.

To me, the knowledge that I’ll enjoy a car’s very best years without any expensive surprises — and that I’m the one racking up those early miles responsibly, not a rotating cast of rental-car drivers — is worth whatever premium I end up paying for a new vehicle. By year four or five, the car’s completely paid off, making later-year maintenance much easier to swallow.

This doesn’t mean I advocate paying more for a car. In practical terms, this just means I’d rather buy a very basic new car than a more luxurious used one.

To me, it’s not about new vs. used — the more important thing is not to overextend yourself for a car either way. They’re all depreciating assets that will eventually rust into oblivion. No matter what the commercials tell you, your car is just a mode of transportation — not a showpiece.

– Jon Gorey

HJ: Why I’ll Never Buy New

“Sixty months same as cash!”

“LIQUIDATION SALE: We’re letting cars go below retail!”

“Drive a brand-new car off the lot today, and you’ll score a $1,500 rebate!”

If you stop by your local dealership, chances are good you’ll hear all of these lines. Crazy enough, a really good salesman can even convince you that he’s losing money when he sells new cars at a steep discount. But, if you’re willing to admit that car dealerships don’t exist to give cars away for free, you can see these gimmicks for what they really are – poorly veiled marketing techniques meant to separate you from your money.

I should know. When I was in my early 20s, a Mitsubishi radio commercial reeled me straight into the dealership. With my curiosity piqued and my vulnerability at an all-time high, I drove off the dealership lot with a $25,000 Mitsubishi Galant I couldn’t afford. Sadly, I was thrilled with the purchase. Why? Because I had 60 months at 0% APR.

After a few years though, I completely tired of those monthly payments and learned a pretty valuable lesson. And, that lesson was this: Most new cars, and especially ones you need to finance, aren’t worth the toll they take on your finances.

Because I had a $500 monthly car payment, my entire life had to change. I eeked by on a small monthly budget, threw all my “extra” money toward my loan for years, and struggled to afford well, basically anything. Sadly, it was all because I heard a commercial for 0% APR and fell for it – hook, line and sinker.

Of course, sales and incentives aren’t the only reason people buy new cars instead of used. If you ask new car owners why they bought new, many will tell you they feel more secure with a bumper-to-bumper warranty and the prospect of fewer repairs. And the truth is, I actually get that argument.

When I drove a brand new ride, I slept well at night knowing that my extended bumper-t0-bumper warranty would cover nearly anything that went wrong. Plus, I took comfort in the fact that the chance of my car breaking down on the side of the road was slim to none.

Still, it would be easy to accomplish the same thing by buying a used car still within warranty and having it checked out by a qualified mechanic before the purchase. You don’t have to buy a brand spanking new car to get a warranty, peace of mind, or security. And when the alternative is paying a giant car payment to drive something new, I now know I’m better off choosing a different path.

Now that I know better, I only buy used cars and drive them until the cows come home. Right now I drive a 2007 Dodge Caravan, and despite being somewhat of a clunker, I have only spent around $1,500 in repairs during the six years I’ve owned it. That sure beats paying a monthly car payment and losing thousands every year for “peace of mind and security.”

And now that I have more experience under my belt, I pay for everything – and even large purchases – with cash. In my mind, monthly payments only obscure the real cost of what you’re buying and make it easier to overspend.

Of course, some people want a new car and save up the money to pay in cash. While that’s a smart move if you’re a new car enthusiast, the sad reality is, most people don’t handle their new car purchase that way. If you don’t believe me, look to Experian’s latest quarterly report on the automotive finance market.

As of the last quarter of 2015, 86% of new cars where financed with a loan, whereas only 55% of used car purchases were financed. Further, the average new car loan was for a whopping $29,551 last quarter, up $1,170 from the year before.

And if that doesn’t shock you, consider this: The average car payment on a new car reached an all-time high last quarter at $493. That’s nearly $500 per month, or $6,000 per year, just to drive something shiny and new.

To me, these statistics prove that most people aren’t using dealer “sales” and incentives to negotiate an awesome price; instead, they’re using them to justify spending more than they can afford.

I don’t believe in a “one size fits all” solution for anyone, but I do know this: If you have to borrow money for five or six years to buy a car, you can’t truly afford it.

As I have always said, saving the money and paying in cash has a way of showing us what we truly value. If you truly want a new car, try saving up the money then negotiating a deal. Chances are, reliable used cars will start creeping onto your radar pretty quick.

–Holly Johnson

Related Articles:

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Cherry Garcia or Phish Food? Ben & Jerry’s Free Cone Day is Coming!

Phish Food, Cherry Garcia, Chunky Monkey, Half Baked.

To the uninitiated, that might look like a random jumble of words.

To Ben & Jerry’s fans, though, that sentence conjures up some of the best feelings this universe has to offer.

‘Cuz they’re ice cream flavors. Insanely delicious ice cream flavors. (Can you tell I’m a total fangirl?)

And you can try them for FREE on Ben & Jerry’s 37th annual Free Cone Day, which takes place on Tuesday, April 12.

Here’s what to do if you want your free ice cream…

How to Get Free Ben & Jerry’s

On April 12, head to the Ben & Jerry’s location nearest you between 12 and 8 pm.

Since this is a popular event — last year, the company gave away one million scoops — it’s smart to get there early.

Having grown up next to Vermont, where Ben & Jerry’s was founded, I’m a diehard fan.

Not only does the company make amazing ice cream, it’s also driven by strong values and an admirable mission.

In its words, “We make the best possible ice cream in the best possible way.”

So you can bet I’ll be there — though what flavor I’ll get is always a game-time decision.

Your Turn: What’s your favorite Ben & Jerry’s flavor?

Susan Shain, senior writer for The Penny Hoarder, is always seeking adventure on a budget. Visit her blog at susanshain.com, or say hi on Twitter @susan_shain.

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4 Great Credit Cards for New Parents (Even If Your Credit Score Stinks)

If you’re a mom or dad to young kids, you’re quickly learning how expensive and exhausting a child can be.

I know the feeling.

My wife and I have two children under the age of three, and it’s been a wonderfully rude awakening, to say the least. After all, the average child costs around $16,916 per year.

Fortunately, my background is in personal finance. Knowing where to find the best deals — on credit cards, in particular — has helped me save hundreds, maybe even thousands, on child-related expenses.

Picking the right credit card isn’t easy, though.

There are more than 1,000 offers available, and young parents have unique needs. For example, your credit standing might need some TLC, you might still be in college, or you might simply want to stretch your dollars as far as possible.

Taking all that into account, here are four of the best credit card offers for new parents with a range of financial needs.

1. Best for Store Discounts: Target REDcard

Even people with limited credit experience can qualify for the Target REDcard.

The Target store credit card doesn’t charge an annual fee and offers a 5% discount on every Target purchase — including online.

That’s pretty much the complete package as far as a budget-conscious young parent is concerned. My wife has this card and loves the everyday savings it provides.

The Kohl’s Card is another good option, offering a 20% first-purchase discount and another 15% discount when your card arrives in the mail.

Kohl’s doesn’t have as broad a selection of items as Target, though, so if you have to choose one, I recommend the REDcard.

2. Best for Bad Credit: Capital One Secured MasterCard

Between increased costs, a more hectic lifestyle and less sleep, it’s understandable if your credit score has become “bad.”

After all, the average first-time parent is in the same boat. But you don’t want to let it stay that way.

Using a secured card is the best way to bounce back — the required security deposit makes approval all but guaranteed and reduces the need for high fees.

The Capital One Secured MasterCard is an especially attractive option, since it lacks an annual fee and has the potential to be “partially secured” — meaning your spending limit could actually be higher than the amount of your deposit.

You’ll be required to place a $49, $99 or $200 deposit in return for a spending limit of $200 to $3,000, depending on your creditworthiness.

3. Best for Parents in College: BankAmericard Cash Rewards for Students

Roughly 26% of undergraduate college students (about five million people) are raising kids while in school.

So it’s worth noting a college or university email address can serve as your ticket to better credit card terms than you’d otherwise expect with a limited credit standing. BankAmericard Cash Rewards for Students is a good example of this.

It doesn’t charge an annual fee or interest for the first 12 months. It also offers a $100 initial bonus, 3% cash back on gas and 2% on groceries (up to $1,500 in combined quarterly purchases), and 1% cash back on everything else.

4. Best for Excellent Credit: Citi Double Cash

If you check your credit score and find it’s actually excellent, you might want to apply for Citi Double Cash.

It’s one of the best cash-back credit cards on the market, offering 1% cash back on all purchases, plus another 1% when you pay your monthly bill.

It also offers 0% introductory financing for both new purchases and balance transfers for the first 15 months — and there’s no annual fee.

Which Credit Card is Right for You?

Regardless of which card you pick, make sure to use it responsibly.

Credit cards are our most efficient credit-building tools. They can be free to use, don’t require getting into debt and report information to the major credit bureaus every month.

As long as this information is positive, the process will lead to efficient credit score gains. But it can work the other way, too.

Finally, it’s wise to add your child to your account as an authorized user. There’s no minimum age requirement, so you’re free to arrange a huge head start in his or her credit career.

I know I’ll be taking this approach with my kids.

Plus, authorized users can’t be held accountable for mistakes. So, your child can request the removal of any negative records you pass along to his or her credit report.

Your Turn: Are you a new parent? Do you have one of these cards, or do you have another favorite?

Odysseas Papadimitriou is CEO of the personal finance website WalletHub, which offers free credit scores, full credit reports and 24/7 credit monitoring. He is a personal finance industry veteran, having previously worked as a senior executive at Capital One.

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