Economics Finance

My grandfather was always insistent that we manage our own escrow account. Never let the bank pay your house taxes and home owners insurance, do it yourself. They’re making money off you when you could making that money for yourself. Here’s how you do it.

Add up your annual payments for your house taxes and home owners insurance. Take that total and divide by 12. That’s how much you need to put in savings every month in order to have the money to pay those things when they come due once a year. Actually, I also put our car tags, life insurance and auto insurance in with those totals, too, that way I’m always sure to have money in savings for whatever bill comes due at odd times.

In my case I put $550 a month in savings which goes toward paying those items. Whenever I get a bill for auto insurance (every 6 months) or the truck license plate tags (annually) I always have the money in a special savings account called Escrow. I never have to scramble to work extra hours to find money to pay them. There’s never a sense of panic, we always have the money tucked away. Continue reading ‘How to Manage Your Own Escrow Account’ »

FICO 08 system is the newest version of the algorithm used by the Credit rating agencies to determine the credit behavior of consumers. Credit score improved over time may suddenly have to update itself according to changing times.

The earlier loop holes are seemingly removed.

1. Now a $100 bill in late payment will not drastically affect your credit score. The overall view about your credit lines will be taken into consideration. Continue reading ‘4 Changes Related to New FICO 08 System and How That Drastically Affects Your Credit Score?’ »

Every person has a dream of planning a secure future for his family. No one knows when he might die so people try to plan for future in a way to provide security to their partners, children and even relatives. People mostly use wills to provide this safety net. Wills ensure the division of wealth and the rest of the belongings the way a person would want it after his/her death.

Some people tend to think that a will cannot be enough to settle difficult matters like property distribution among the heirs, and they want something more. They opt for a trust that is more practical and easier to manage. This is especially true in cases where the heirs are underage and other people cannot be trusted. In these situations a trust could come real handy.

Beneficiary trusts are run under the name of a beneficiary and a trustee is chosen by the settler to manage it. According to the laws in United Kingdom, the settler has to make it very clear what the goal of the trust is, and what powers are being granted to the trustee. There are many different kinds of beneficiary trusts that are supported by the laws of inheritance in UK. Continue reading ‘How Do Beneficiary Trusts Work?’ »

So its nearing April 15th. That dreadful of all days. The Tax Deadline. You know you have a ton on your mind. This is the last thing you want. Well, you are a brave soul You have done this in the past. Many times in the past actually.

So, with a mighty resolution, you decide to get started on your Tax Return this very weekend. You pack your spouse off to a picnic and roll up your sleeves and get ready. You are not afraid of paper, not a bit. You run off to the post office and get all the latest forms and worksheets and sit down at your desk.

So painted below in words is a hypothetical scenario of what would transpire as you head down the glorious path of preparing your Tax Return.

Scenario 1 : HAND-FILLED, SELF-FILED TAX RETURN

1. You go to the post office and pick up the paper booklet with the tax form. Now if you are smart you would have gotten every tax form you know – but you did’nt, so you had to make 2 trips to get all the forms you need.
2. Next… You have to go through the meticulous process of having to fill one box at a time, make sure your entries are okay, make sure you at least copied down everything from your W2 into your . Because each calculation is connected to the next, each box ties to the next. At the end of this painstaking process you arrive at the final number – your refund or the tax you owe.
3. Next step – Find the right address to mail to. Do you know where to mail your tax return. Well its there, its probably in the instructions to the form. Again scan every word until you get the address. Oh Well Eureka!! You just found it.. congratulations. Now put that in an envelope.
4. Walk to the post-office make it before midnight on April 15th and make sure you catch the last snail mail train. Because if it leaves, you are in trouble.. BIG trouble! Continue reading ‘Your Tax Return – How the Tax Return Process Works’ »

Tax deductions are lucrative things but they differ for every profession. For nurses, there are many such specific tax deductions. Do take their benefit on your tax return to make your income healthier.

If you are a nurse, do not forget to claim the following deductions -

1. Uniforms – The cost of acquiring uniforms and the cost of their cleaning and maintenance is an important expense for a nurse. As they are directly related to job, you can claim such cost as deduction on your tax return.

2. Specialized equipment – If you are required to buy some specific shoes or if equipment like stethoscopes or clamps, you can claim that cost as your deduction. If you are required to buy a PDA for coping up with the job, its cost can also be taken as legitimate deduction.

3. Fees for license and training – The fees which you pay for renewal of your license are deductible. If you buy any books or medical journals for keeping tract with the latest in your field, their costs will be deductible. Continue reading ‘‘Nursing’ Your Deductions For a Healthy Income!’ »