The Weight of Money

All that procrastination for 30 minutes of work to get the taxes filed. We used Turbo Tax for free e-file thanks to a link from our bank — maybe it’s free anyways. We then e-filed through our state’s website, also for free.

The Maryland website was terrible and made the whole e-file process rather nerve wracking because I wasn’t sure if I was filling things out right or not. I took solace in the fact that the numbers were pretty close to the ones I wrote up on paper and figured that despite the visually complicated process that things were filed correctly.

I’m still kicking myself for not doing this sooner, but at least it is done now. Hopefully we’ll have a refund earning interest in a couple weeks.

Overall, filing taxes reminds me that I really need to track some expenses and tack itemized deductions next year. There are so many areas where we could take deductions but haven’t kept receipts and good files in the past. Plus, we’ll have business income to report and it looks like it’ll be a break-even year since I’m still spending more on business expenses than what is coming in. I need to also figure out what business taxes I will owe too and make sure that I file them regularly to avoid in late penalties.

Sunday morning, after sleeping in too late, I obsessed over getting our taxes completed. The partner and I have been having lots of little talks about money and upcoming spending and needed to know if our tax fears were valid.

Within an hour of starting, I had completed both our state and federal taxes. However, in my zeal of following step-by-step instructions and filling out forms (I’ve got a thing for forms), I forgot to address the “what if” scenario with the partner. While I’d already figured out that any tax owed would come directly from savings, we hadn’t discussed the situation. However, what would we do with a refund? And, what difference, if any, would the amount of the refund make in deciding what to do with it?

So, after calculating our refunds, I asked the partner those exact questions. I didn’t reveal the numbers the forms already had because I wanted to pretend we were starting this conversation at the right time – before there was a real dollar amount to consider.

The partner responded that I probably wanted to put it all toward debt with a slight sneer to his voice. It seems that I’ve been pushing that debt reduction button pretty hard in his eyes, or maybe it was just throwing $5,000 at it the other month that still makes him a little uncomfortable.

He then threw out his standard argument of wanting to see the numerical comparison of putting it toward debt and, based on the monthly interest reduction, how long it would take to save up that amount. Tired of that argument, and feeling a little unsure of making those calculations, I just argued for a more immediate answer.

Next, he wanted to make some logical comparison of owing taxes versus getting a refund. What would we do if we owed taxes? Put it on credit or pull it from savings? Credit! No way, it’d come from savings. Since the credit card tax payment wasn’t an option that reasoning method was rejected as well.

Finally, we both agreed that we wanted to put it all into savings. Basically, the house needs to happen this year and it won’t happen without more cash. Also, if we put it toward debt, it would not reduce our payments enough to allow us to save up that amount by summer.

Now, I just need to decide if I’m going to file electronically or on paper – the paper form is already filled out, would just need to drop it in the mail.

My freelance journey begins. I’ve picked-up my first ever paying sewing job and I’m excited, despite my initial reluctance.

I’m glad I kept the appointment because what sounded like a couple little sewing projects is really a blank-slate house in need of some serious adornment. This will be an ongoing, substantial project that will make up for the fact that I’m not charging enough. Seeing the future money potential, I compromised on my one pet peeve because it was good customer service to do so. While I didn’t want to start with a small task, I knew that it’d boost the cllient’s confidence in my work if I did.

I know that this small initial job will help build my confidence for the additional work that she’ll be giving me and will hopefully lead to some additional referrals. This job has already given me one referral because I mentioned it during lunch with a coworker and she started telling me all about the new house they are buying and how it’ll need a lot of decoration help.

I’m glad I got over my fear that was trying to talk me out of taking the job and that I’ve finally put some action into all my money thoughts.

It is almost time to look at our taxes and, for the first time, I’m actually worried about what I’ll find. This is probably an irrational fear because I’ve never had taxes turn out negatively for me. However, I’m getting in W-2s and am pretty surprised at the deductions taken for taxes (small red flags). Also, I was very surprised to see that the partner had not adjust his withholdings when we wed last year and is still having taxes withheld at the single person rate (add that to the immediate to-do list).

So, I’m anxiously waiting to get in all the relevant tax forms from investments and all of that good stuff. I’ve never done taxes as complicated as this (multiple investment accounts, savings accounts, student loan interest) but figure that it’ll probably be easy enough. However, I want to get cracking because I want to know if we’re gonna have to come up with some more cash for last year’s taxes.

Also, since the partner takes his taxes to be prepared, I think we’ve agreed that I’ll work up the numbers and they we’ll go and see what the professional has to say. If we come out the same, then we’ll no longer use a preparation service. However, if I’ve clearly missed some major deductions we could have taken, then we’ll keep using a tax service (or, reality wise, I’ll beef up my income tax knowledge). The tax service option isn’t my idea, instead I’m trying to deal with some concerns (fears) the partner has about the ability for anyone to do their own taxes. Maybe, come next month, he’ll accept that my preparation is good enough and we’ll drop the comparison point (and save the cash).

I’ve been on an intellectual kick to earn more money - I’m just rolling in the thoughts and ideas. However, when it comes time to make something happen, I start dragging my feet.

For example, I responded to a craigslist ad to do some custom sewing. Since this is something new for me, I asked my momma for prices and she gave me Oklahoma deflated prices and not Maryland inflated prices - strike one. The customer likes my cheaper prices and I accepted the job with terms that I didn’t really like - strike two.

This afternoon, talking with my momma about the job and my lack of desire, she urges me to call and cancel. We commiserate about how work usually isn’t up to par when the heart ain’t in it and no one should do half-hearted work. She is all for me backing out of the deal until she says “you don’t need the money anyways, do you?” Ummmm…

She hit the sore spot - reality is that we do need the money right now. I need to be bringing in all that I can because of the part-time job. So, suddenly all those reasons to not do the job faded away and I’m reminded that all those cash making ideas need cash making action to follow them up.

However, I did send an email to change one of the terms of the agreement because I need to make up for the fact that I’m gonna get Oklahoma dollars for the work I’ll be doing. This provides an out for the customer and a modification that’ll make me happy to do the work. Hopefully we’ll both be comfortable with the changes and I’ll be bringing in some extra cash.

Next time, I’ll take more time when offering prices and agreeing to the terms. Also, I’ll try to keep in mind that we do need the money right now if we want to stay on track with our 2007 goals.

I posted our goals for 2007 and include a stretch for saving $1,200 a month for the purchase of a house later this year. This was to combine $700 in direct savings and $500 in ebay sales. I figured the ebay portion would be the stretch, but we’ve already hit a snag 15 days into January.

Last month we were on budget until the partner and I started stroking checks for magazine subscriptions – most for several year subscriptions. This was more his thing and I just happened to be holding the pen at the time. However, this plus some organization dues (that we’ll be reimbursed for) threw us over budget by more than $500.

Also, as I’ve recently mentioned, we’ve had another round of car trouble to the tune of $350. This time it is the partner’s van that blew out a brake line while going in for the semi-annual emissions testing. Our repair shop must be liking us a lot right now, almost $800 in a little over a month.

So, January’s available funds are short by about $900. I’ve scrutinized all our budget categories and just there is nothing we can reduce spending; everything has already been slimmed down to the bare minimums.

I know that the best plan would be to trim back on our new savings plan to avoid increasing credit card debt and get back on track, but I’m not ready to take that step. Instead, I’m going to take a major leap of faith and hold to our steep savings plan despite the crunch we’re under.

My only real action plan is to push the ebay button very hard this month in the few weeks we have left. We need the $500 for savings and another $500 to help ease the deficit. Considering that the ebay income is less than $100 at the moment, this will take some serious work. Our upcoming vacation is also going to put another kink in sales too.

The remaining $400 shortage will be carried over to February. Thanks to how we manage our finances, we can spread the $900 out over two months to help ease the strain and get back on track.

This comes one month before our finances will really get tight. Next month we’ll be seeing less money coming home because 1) my new job is part-time, 2) medical insurance premiums increase, and 3) the partner signed paperwork for 5% contribution to the 401K since the company began offering matching funds (working out to a 4% raise – free money).

For now, I’m going to have faith that this will work out and that we must keep with our planned savings contributions because dropping the ball in round one jeopardizes our overall success.

Tomorrow is the last day at my current position with an organization I admire. Wednesday will be the first day at my new position with some reservations. This is mostly just my initial reflection on the workplace change and a much needed break from my impossible to do list. I’ll get into the money issues next week when I’ve had time to consider them.

I work for an organization that I can truly believe in and know that they are making a positive difference in the field of education - my field of interest. In leaving this office and finding a place closer to home, I knew that I would have to compromise on my high standards in terms of morals and values. I’ve found a place that is not-for-profit and is in a field I’ve never considered working in - health care. Initially, I rationalized that this was close enough to doing good in the community, but my heart isn’t behind it 100%. But, I’ve taken the job anyways because it is clearly much better that working for Defense-Widgets-R-Us.

In reflecting on the workplace logistics, my concerns are increasing. I’ve accepted a part-time position to help me have more time at home with my family. However, I’ve be work 30-32 hours a week; every full-time position I’ve held has had a 35-hour work week and this isn’t really part-time to me. Also, their holiday and leave policies are the worst that I’ve ever encountered. Finally, they are a huge corporation of 20,000+ employees with all those annoying policies and procedures that come with the staff numbers.

I’m starting to feel a little overwhelmed by my choice and am wondering if maybe my compromise is be closer to home will actually be more difficult that I originally thought. But of course, I’m not going somewhere that is out just to make a buck. Health care is an important field in terms of community and helping others, but I’m just not feeling happy, go, lucky about it all just yet.

Occasionally I’ll see a new easy-cash scheme and think it just might be worth trying. Sometimes I think passive income from ads is worth the trouble of optimizing placement or that singing up for a web survey is worth the few dollars it’ll eventually kick back. Of course, while I’ll think it is worth the trouble, I hardly ever make the effort. My google ads still languish away at the bottom of the sidebar, unclicked and unloved, and I don’t really care. The few sites I’ve pretend I’d complete surveys/activities for are long forgotten.

However, there is something new that actually brought out some action - agloco.com (referral link). Now, here is a program that appears to exploit every concern I’ve ever had about internet privacy and even wants to help line my pockets as advertisers line theirs. Supposedly this is a repeat model of another similar business product, but it is still in its developing stages. Agloco is still working on the beta bar that is essential for the entire process to work — yet they are pushing and urging people to join, make referrals, and build the network before you can even use it.

Of course, all this prerelease network building really helps them sell their product to investors and such because they’ll get to tout the broad interest generated with just the promise of passive riches, riches from merely surfing the internet and getting paid for it.

The basic gist is that you join, agree to run this little browser bar that tracks your internet activity you’ll get paid for up to five hours a month. Also, you’ll get paid for a portion for the time each of your referrals use and even their referrals and yes, their referrals too — it only goes to four levels of referrals before cutting out the kick back. There is a lot of talk on their site about their privacy policy, spyware, and strict no-spam policies that is supposed going to help them stay an honest option for members. I’m skeptical but willing to at least think about it.

Since joining didn’t require selling away any more of my privacy than basic forum websites, I signed up. Of course, this surge of motivation will probably not last through the actual release of the browser bar and live participation in the project, but if it does, I might give it a try if my privacy values will allow it. You, of course, are welcome to join me (referral link).

Referral ID: BBBL2743

Dual-employed partners often need to compare their insurance benefits to select the plan or combination of plans that will best fit their needs and financial goals.

My new job pays 100% of individual premiums and 50% of dependent premiums. The partner’s job pays 30%. This comparison shows that the high percentage paid does not always mean a better deal, at least in terms of our desired PPO plan.

When comparing plans offered by your respective empolyers, follow two simple steps:

Step One: Find out if either employer will provide a cash payout if you do not use their medical benefits. Some companies will pay you in salary what you are not using in medical benefits.

For my company, however, this was not an option.

Step Two: Compare the fees associated with each plan and decide on a plan of action. Be sure to consider premiums, deductible, co-pays, percentage paid, etc. (See final remarks for additional considerations.)

Luckily for us, the plans at both HIS and HER companies were simmilar and required only a comparison of employee-paid premiums. Here are the comparisons that I went through:

Cost Comparison: This table lists the costs of each plan based on HIS and HER company; these are the fees that we pay and do not include employer contributions. HER company does not have a plan similar to the POS plan we currently participate in.

Options: The second chart details the comparisons I used in order to determine our plan of action.
- Plan 1: No Change. We stay with the family plan at HIS company that we have now.
- Plan 2: We switch to the family plan at HER company.
- Plan 3: We change to the Individual+Child plan at HIS company and sign up for the individual plan at HER company.
- Plan 4: We change to the Individual plan at HIS company and sign up for the Individual+Child at HER company.

Plan of Action: As you can see, the best option for us is Plan 3 - change to Individual+Child plan at HIS company and enroll in the individual plan at HER company.

Savings: Our annual savings will be $1,288.82 a year, $107.40 a month, and $49.57 a paycheck.

Final Thoughts: If you compare your health plans and discover that they are both fairly similar in all aspects, including employee-paid premiums, pay attention to the full premium. If you ever lose your job and must rely on COBRA, this is the monthly fee that you will be required to pay. For dual-earner families, this may not be a big consideration because you can always begin using the insurance benefits from the employed partner.

Also, the type of coverage desired obviously has a big impact on the fees. I personally desire PPO plans for my own, personal medical care. For the rest of my family, the POS plan that we currently have is sufficient. Our plan of action will meet the needs of our family and our situation well.

My long job search has finally ended. I started at a national non-profit last week and my head has been spinning ever since. I’m part of a project that has just launched a national call for proposals and the activity is almost overwhelming. I’ve come home from work exhausted every night, yet eager to wake up and start again.

In terms of personal finances:

The position is $1,000 less than I wanted but I took it anyways. It is $12,000 more than my last position, so that makes me feel a little better. I described many details about this position in my evaluating job offer series Part One and Two (it is closely related to job offer two).

My title leaves much to be desired because it is the same one I had at my last job. However, I realize the responsibilty is much greater than previous positions and it provides a good challenge and opportunity to excel.

I have to commute to work and will be using public transportation. This requires a ~45 minute bus ride, 22 minute train ride, and 10 minute walk (to the bus and then to the office) each way. For me it works out to free exercise and about $130 a month. I will be able to get $105/month in pre-tax benefits.

I must improve my habit of bringing lunch to work. I work in an area full of wonderful food; it can add up quickly. Last week put a major damper on my budget because I failed to bring a lunch each day.

I am excited about this position. It is taking me away from home for longer periods of time than I am used to. My family is having to adjust to the fact that the partner is now the one home the majority of the time but I know that it will work out as we get used to the new schedule.