12 Dynamic Ways to Save Money on Valentine's Day

 

 

According to the National Retail Federation, Americans are expected to spend over $19 billion for Valentine’s Day this year. Fifty-one percent of Americans will buy candy spending $1.8 billion, 36.4% will buy flowers spending $2 billion, and 17.2% will purchase reasonable gifts such as sweaters, coats and winter accessories spending $2 billion.

Valentine's Day is overly commercialized and is the fourth latest shopping occasion in consumer spending. Advertisers show commercials that focus mainly on buying women gifts. They make women believe that the only time a man should show affection is on Valentine's Day. They also make women believe that the world will come to an end if they do not receive a gift on Valentine’s Day. I believe if you show affection all year long you won't have to dash at the last minute to buy an expensive gift. If couples treat each other with respect, communicate with each other and live in love, Valentine's Day will not seem as one the biggest holidays of the year.

Valentine's Day gifts and memories should be a bonus to a healthy relationship not a chore or ultimatum of "he or she better get me something nice or else". Gifts should not be a measure of how much someone loves and you should not fall in love or like with someone because of the gifts they buy.

If you know your significant other is financially strapped, don't be selfish and expect an expensive gift for Valentine’s Day. Be realistic and understanding and know that sometimes men need a little help with gift ideas. Be appreciative of whatever you get, it’s the thought that counts, unless you get a letter opener! Here are 12 dynamic ways to celebrate Valentine's Day and save money.

1. Know your partner. If your partner or spouse gets very excited about Valentine’s Day and wants a big gift, then you better get out your wallet and spend accordingly. If your partner or spouse likes simple gifts or gifts from the heart then buy that.
2. Ask. Don’t be afraid to get gift suggestions from your partner or spouse. Ask them what they need or would like to do for Valentine’s Day. If they don’t tell you, ask their best friend, sibling or mother for gift suggestions.  
3. Give from the heart. If you get a balloon or chocolate, get your significant other's name on it or get personalized chocolates or baked goods.
4. Going out. If you suspect your date feels uncomfortable or is short on cash offer to split the bill and don't get upset about it. Things happen. At least he or she was thoughtful enough to want to spend time with you. He or she may just be afraid to admit he or she is having financial problems.
5. Be creative. Write a love letter or love note. If you aren't in love yet, write a note expressing how you feel and what you like about your significant other. However, don’t use this in lieu or a gift. It may not go over too well. 
6. Purchase a quick getaway. Check online for specials for bed and breakfast inns that are inexpensive or stay overnight in a local hotel room.
7. Do a staycation. Send the children out overnight. Clean the house. Cook a meal, draw a bubble bath and enjoy each other’s company if you can’t afford to buy each other gifts.
8. Be different. Everyone buys roses on Valentine's Day. Find out what her favorite flower is and buy that instead of roses. It will show her that you are thoughtful, a leader not a follower and that you really care.
9. Free. Check your local newspaper for free events during Valentine's Day weekend.
10. Be a chef. If your significant other likes baked goods. Bake their favorite baked good and feed it to them or fix breakfast in bed.
11. Work. Offer to clean the house, do chores or complete your “honey do list”.
12. Avoid going into debt. If you can’t afford to buy a gift or spend money, be honest. Don’t wait until the last minute and buy a cheap gift or grab something without putting any thought into the gift, it will show. Find inexpensive ways to show your love. Next year plan ahead and save up to buy a gift.

Here's How to File Your Taxes for Free

  

 

Filing taxes can be a burden for many taxpayers. Unfortunately, everyone has to file taxes even if you are unemployed or haven’t earned any income. If you don’t have accurate records it can be a nightmare. The best way to file your taxes is to stay organized. 

File all receipts, paperwork or possible paperwork related to personal and business expenses and tax deductions, categorize them into separate folders, and keep handy. The main expenses to keep track of are: all business income and spending, home office expenses, retirement contributions, student loan interest, energy efficient upgrades, real estate purchases or sales, charitable donations, contributions to college savings plan, and capital gains. 

There are several options for filing taxes and some taxpayers are eligible to file their taxes for free. Here are 5 ways to file your taxes for free.

• Free Software. If your adjusted gross income is $62,000 or less you can use free tax software such as: Turbo Tax, Free TaxAct, Tax Slayer or H&R Block’s Free File.
• Use Free Forms. Anyone can use free file fillable forms from freefilefillableforms.com. The site provides online versions of paper federal tax forms.
• Use Free Services. Find free tax clinics in you earn less than $62,000 per year www.irs.gov/uac/Contact-Your-Local-IRS-Office-1 or contact AARP if you 50 or older http://www.aarp.org/applications/VMISLocator/searchTaxAideLocations.action.
• File Electronically. Efile (electronically) your tax return for free by using direct deposit or pay your taxes online for free by using www.irs.gov.
• Paper forms. Use paper tax forms to file your taxes and mail them to the IRS. If you filed last year’s taxes with paper forms the IRS will mail you forms this year. The only cost is postage. To order paper tax forms call 800-829-3676 Monday through Friday 7 am - 7 pm.

You can get your taxes prepared for free using the IRS Volunteer Income Tax Assistance (VITA) program or the Tax Counseling for the Elderly (TCE) programs that. VITA prepares taxes for people who make $54,000 or less. Call 1-800-906-9887 to get more information.

TCE offers tax help for people 60 years old or older at 1-888-227-7669. You can also visit an IRS volunteer at a self-assistance service site to get free tax preparation. Visit the IRS website to find a facilitated self-assistance site.

Is a 10 Year Mortgage Loan a Good Option

     

Why homebuyers shy away from the 10-year fixed loan?

• Most homebuyers don’t feel they can afford the mortgage payment for a 10-year loan. Since the recession and government shutdown homebuyers know that the future is unknown so they want to be sure they can afford their mortgage payment and avoid foreclosure.  It is easier to afford a mortgage payment with a 30-year loan. However, if are a homeowner and are considering moving to a new home you should consider a 15-year or 10-year loan to pay your home off faster versus refinancing for another 30-year mortgage.
• The mortgage industry pushes 30-year mortgage loans because they are more profitable.  Ten-year mortgages are not pushed to homebuyers because they are less profitable, you actually have to ask a lender about it. They don’t mention it as an option when talking to potential homebuyers.

Why 10-year loan interest rates are lower?

• 10-year loan interest rates are lower because they are safer loans for lenders. Homeowners pay off their mortgage loans in 1/3 the time than everyone else which means the lenders get their money back faster.  A ten-year loan is usually 75% - 80% the interest rate of a 30-year loan. Homeowners who get a 10-year loan are usually more financially stable those homeowners who get a 30-year loan.
• According to Bankrate.com a 30-year mortgage loan interest rate is 3.69%. A 10-year rate is 3.12% with a monthly payment of 40-60% less than a 30-year loan depending on the interest rate.  

How much do you save by getting a 10-year?

• The savings for a 10-year loan can be great. A 30-year loan for $200K at 3.69% would pay $130,996.65 in interest over the life of the loan.  A 10-year loan for $200K at 3.12% would pay $ 33,077.57 in interest over the life of the loan.

What are the advantages of having home equity build faster?

• You increase your net worth at a faster rate
• Can use the equity to make up for losses in your retirement account, home repairs, purchase investment property or start a business
• Helps underwater homeowners rebuild equity nearly twice as fast than with a 30-year loan
• Puts homeowner in a better position to sell

 Whom is a 10-year loan beneficial?

• Equity is extra beneficial for those near retirement or who are retired and took out a mortgage loan later in life
• A 10-year loan is a good option for prospective retirees and consumers having major life changes such as paying for college education or starting a business
• It frees up money that was used to pay the monthly mortgage payment
• It boosts your credit score because you owe less debt.
• It make you look more favorable if you desire to apply for credit in the future
• If you experience a financial crisis you can borrow equity from your home

What advantages does a homeowner qualify for regarding mortgage insurance?

• If your house has more than 20% equity, you will not need to pay PMI, unless you have a FHA mortgage loan or are considered a high-risk borrower
• If the appraisal shows you have 10% equity, you could qualify for the lender to pay the monthly mortgage insurance payments (Lender Paid Mortgage Insurance)
• A refinance that involves removing private mortgage insurance (PMI) will to help save you money
• PMI can be range from .75% of the loan amount to 1.3% of the loan amount, annually, paid on a monthly basis. On a loan for $400,000 that could be as high as $430 per month – for 10 years that equals to $51,600, for 30 years that equals to $154,800.
• You save on PMI because you only have to pay it for 10 years versus the traditional 30 years

Why should a homeowner apply for a 10-year refinance loan?

• If you want to lower your monthly payment and shorten the length of your loan
• If the refinance rate will decrease your current interest rate by at least a point and a half
• If you are paying PMI and have at least 20% equity in your home
• If you don’t have a mortgage prepayment penalty
• If you have an ARM or balloon loan
• If you are trying to add or remove someone from a mortgage due to a marriage or divorce
• If you have a second mortgage or home equity loan
• To get out of debt sooner
• If you don’t plan to move anytime soon

When should a homeowner apply for a 10-year refinance loan?

• You have good credit – at least a 720 credit score
• You have at least 20% equity in your home
• You can get approved for an interest rate at least 1 ½ points lower than your current interest rate
• You will not be living paycheck to paycheck or struggling to pay the higher mortgage payment
• You are married and your spouse is helping to pay the mortgage payment
• You received a windfall or will receive a windfall in the near future
• You can afford the increased monthly payment for the next 10 years

When shouldn’t a homeowner apply for a 10-year refinance loan?

• If you are living paycheck to paycheck
• If you are not in good health
• If you have bad credit
• If you work in an unstable industry
• If you live in a high cost area (NY, California, Washington DC, etc.)
• If you want to take advantage of lower interest rates in the future