Hope for your financial life and beyond

When Should I Consult a Tax Professional?

March 25, 2013 by 14 Comments

The following is a guest post by tax professional Kim Fourman, otherwise known as Mrs. Luke1428. She is a CPA at Loggins, Kern & McCombs in Jonesboro, Georgia. The following is not tax or legal advice. If you have questions about your own situation, please consult a professional to discuss your particular situation.

tax professionalWhen is it important to consult a tax professional? Well, as a tax professional, you may be surprised at my answer. At my firm, this is what we tell people who inquire about our services:

If you understand the questions and can answer them properly, then Turbo Tax works great.

It really does. It would make no sense for someone with a couple of W2s and some mortgage interest to pay a CPA to prepare their taxes. But, there are times when you need to consult a tax professional.

Consult a Tax Professional When…

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Considerations When Starting a Business

March 18, 2013 by 5 Comments

BusinessThinking of starting a new business? Congratulations and thank you from the rest of America! Small businesses are what keep our country running. I thought I’d post a few things to think about if you are starting a new business. Of course, this isn’t an exhaustive list, and I’d encourage you to take the time to speak with a lawyer and a CPA to make sure that all your ducks are in a row. The expertise is worth the cost.

Having said that, here are a few things to think about:

What type of business will it be? 

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How Does a 1040 Work?

March 5, 2013 by 4 Comments

1040 Tax FormFor years when our W-2s came in the mail, I just plunked our numbers into Turbo Tax, and out popped a form. We sent that form in (or just e-filed) and then boom…a refund check showed up shortly thereafter. Cool. But I really didn’t have an understanding at all about how the form flowed…I just answered the questions.

Now that I prepare tax returns for a living, I’ve come to appreciate how important it is that a taxpayer really understands what they are reporting on the form and how it all flows together. So, without further ado – here it is – the Form 1040 broken down into manageable chunks. I’ll try to keep it in plain English as much as possible. [Read more…]

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How to Control Overspending and “Gotcha” Moments

February 20, 2013 by 7 Comments
control overspending

Awww…did you forget about a bill this month?

The number one reason you should be saving money right now is for emergencies. Guaranteed they are going to happen. The second reason we need to save money consistently is for making purchases or for paying bills. As I’ve written about, this concept goes completely against the grain of what is normal in American society. Even though your friends won’t be doing this, there are two completely legitimate reasons why you should develop a monthly saving pattern.

First of all, saving for purchases can help control overspending because it forces us to wait. We tend to get into trouble with our spending habits because we believe in gratifying ourselves instantly. We see something…we like it…we buy it, on the spot. We don’t think how that purchase sets us back financially because it makes us feel so good.

Following a monthly savings plan has another benefit in that it helps eliminate the monthly budget busters that I call “gotcha moments.” What’s a “gotcha moment?”

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The Un-American Way: Saving for Purchases

February 19, 2013 by 20 Comments

Light bulb penniesSeveral weeks ago I wrote about the #1 reason why saving money is important. In “O Lord Jesus, It’s a Fire!” I discussed how saving is vital because we are guaranteed to face emergencies in our life. Having some cash set aside reduces most emergencies to minor inconveniences.

The coolest part about having an emergency fund is that it causes us to emotionally and mentally relax. We realize, with some money reserves in place, that we will be able to move through the crisis with relative ease.  We no longer have to stress out as we scramble to come up with cash or go into debt to fix whatever problem has come about.

I’ve believed my whole life saving money was important, especially for a “rainy day.” But in my saving money belief structure, I was missing a vital element. To incorporate this missing link it into my life, I would have to do something very un-American. I would have to come face to face with what I really didn’t want to do…

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“O Lord Jesus It’s a Fire!” – Saving For Emergencies

January 24, 2013 by 15 Comments

o lord jesus its a fireEver walk to the refrigerator, maybe to get you a cold pop, and when you opened the door the light did not come on and there was no cold air? Or maybe you’ve been BBQ-ing, the fire got too hot and you burnt the chicken. Guess we are going out for dinner.

Maybe you’ve had an unexpected bout with bronchitis that required expensive medicine. Or you suddenly remembered it’s back to school time and the kids had no shoes to wear for PE class. Perhaps something bigger has happened like a house fire where you were displaced from your home and possessions for a time.

Our reaction when crazy life events happen is basically to say, “O Lord Jesus, it’s a fire!” and then we do our best to put the fire out. Usually that requires the spending of money to make the situation right or normal again. The question for us then is “How can we be prepared when the fire comes?”

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Plan Like There’s No Tomorrow

January 1, 2013 by 1 Comment

Big Ben New Years5…4…3…2…1…Happy New Year!

And so, 2012 was put in the rear view mirror this morning as the clock struck midnight. Across the world, the coming of the New Year was greeted with cheering, confetti, fireworks and kisses. We celebrated making it through another year.

However, New Year’s Eve is more than a celebration of the past. Its focus is really looking ahead with hopeful anticipation for all that we plan to accomplish in the coming year.

Do you know what you want to accomplish in 2013? Do you already have plans drawn up? If not, you need to begin now for one simple reason. You don’t know what the future has in store.

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Why the Rich (And Maybe All Of Us) Can’t Sleep

November 16, 2012 by Leave a Comment

can't sleepSo, you have finally accomplished your financial dreams. Through sheer hard work and sacrifice you are now able to live comfortably. You have enough money stored up so that you can purchase anything your heart desires.

Your problems are over, or so you thought. Because now there is a new problem to face, one that keeps you up for all hours of the night. You can’t sleep.

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Of Marathons and Money: Recovery Week Edition

November 2, 2012 by 2 Comments

Recovery. It begins the moment you cross the finish line. First step, take the shiny, thermal blanket to stay warm. Then, keep walking…drink…eat…stretch. Once you are home, it’s hot tub soak…eat and drink some more…and Tylenol PM so you can sleep. The next few days means no running, maybe a massage, and lots of stretching to relieve muscles soreness. All in all, the physical recovery from completing a marathon takes about a week for most people.

The mental recovery will most likely take longer.

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Of Marathons and Money: Post Race Edition

October 30, 2012 by Leave a Comment

Success! I completed the Atlanta Marathon Sunday morning in 4:07:54. That time ended up being a 9:23 pace per mile which I was really satisfied with. A 9:30 pace had been my goal. The weather was in the mid-50s and cloudy. We ended up running through several patches of drizzle but nothing to make one uncomfortable.

Overall I ended up 321st out of 982 finishers, placing 38th out of 113 in the 35-39 age group.

The biggest challenge of the race was the physical wall you hit about mile 20. I knew this was coming because I had read so much about it and had experienced it a little bit in training.

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Of Marathons and Money: Pre-Race Edition

October 26, 2012 by Leave a Comment

When was your last life-changing day? We have these randomly littered at various points throughout the course of our life. Most life-changing days we never see coming…they just spontaneously happen. The day of that spiritual awakening…the day you get a proposal and a diamond…the day of a personal tragedy…the day we get fed up with __________ (fill in your blank) and decide to do something about it. It is the day we realize, “Huh…things are going to be different.” My most recent one occurred on October 15, 2011, the day I finished my first 5K race.

Something about finishing that race drove me to continue running. Now – almost 800 miles, 7,000+ minutes of running, and 3 half-marathons later – I am set to tackle my first full marathon this coming Sunday. 26.2 miles. Crazy…I know.

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