Money magazine has a series on 20 timeless money rules that's pretty interesting. This is the last day I'll be sharing a few of their ideas as well as my thoughts on them. The first one for today is to pay only your share of taxes. Money's thoughts:
So take full advantage of tax-deferred benefits at work, like 401(k)s and flexible spending accounts. Stick with tax-efficient investments like index funds. And claim every deduction you're entitled to. According to the Government Accountability Office, taxpayers who could itemize but chose not to ended up overpaying by $450. Don't be one of them.
I hear them loud and clear on this one. I'm willing to pay my fair share of taxes, but I don't want to pay a penny more. that's why I see using a CPA for my tax returns as an investment that's very worthwhile.
Next, Money says to give:
Identify a cause that really speaks to you. Then devote most of your energy and charitable dollars to the organizations that best support it.
And who knows, maybe giving money is the key to prosperity.
Money ends the series by saying we all should keep money in its place. Their thoughts:
People who say they value money highly report that they are less happy in life than those who care more about love and friends. Enough said.
My take on this is that there are a ton of things in life that are more important than money. A few of them:
Question: If someone owes YOU money, would you want them to tithe first or repay you first?
Posted by: Minimum Wage | September 08, 2007 at 09:01 AM
Ditto, Minimum Wage. If someone owes me money and are late in repaying it, I'd be very angry if they consider giving to charity higher priority than repaying me. If they prefer giving to charity while paying 20% to credit card - it is their business. But any required payments are hurting their creditors. People have no right to hurt others because they consider that someone's else need is higher.
BTW - I do my own taxes. I've itemized forever (high NY State taxes make it worthwhile even with paid mortgage), and no, I don't believe I am missing deductions. I use TurboTax and it takes you through all of those anyway. If I had a business, maybe I'd hire a CPA. But there are really not that many deductions for those of us who are employed. Even before I started using TurboTax just reading the instructions carefully and consulting relevant publication is more than enough. I did it myself even when I was renting out my condo and when I sold it. I had to spend time reading necessary publications about rentals and sales of rental properties. And I learned all about renting out and what I can deduct, etc. In complex cases it takes a bit of work, but in simple cases (employed, salary, no additional income except for maybe capital gains), it is quite easy. I think CPAs are over-rated. A friend of mine didn't have a good one, and he made a mess of things. Now she is using TurboTax.
Posted by: kitty | September 08, 2007 at 11:48 AM
MW -- No one would owe me money. I either GIVE people money or not lend at all.
Posted by: FMF | September 10, 2007 at 08:12 AM