Personal Finance Facts – What You Should Know About Surviving These Tough, Tumultuous Economic Times

So are you looking for personal finance facts because you’re worried about getting through these terrible financial times with a shirt on your back and a roof over your head?

A ton of people are hurting worse than ever before, and the stress of this is not fun.

But there are certainly things that you can do that will help your cause, and even make these your best times financially ever.

Personal Finance Facts That Most People Won’t Tell You…

Right now it’s no secret that the world is in trouble when it comes to finances. The jobless rate in the U.S. and abroad is stagnant, with most states in the double digit percentage rates.

Inflation is looming right around the corner in the U.S. while other countries are already feeling it. Not to mention the fact that food prices are skyrocketing with warnings popping up in nearly every financial news source there is. Clothing will soon likely go up as well, due to skyrocketing prices in cotton and other materials.

And then of course there’s that good ole resource that affects all of us more than we think…oil. The price of oil is creeping up by the day, and with turmoil in the middle east, there’s no telling where we’ll see our gasoline, fuel oil, and everything else that oil affects…which is nearly everything.

So what do we do to survive all this? How can we thrive through this?

These Personal Financial Facts Could Help You Come Out Better Off at the End of These Times

First off you need to do what most of the countries having trouble aren’t doing which is to get your spending under control. This is no time for frivolous spending. It’s times to start paying off your debt, and start buying things with cash rather than credit, so as to keep your debt at bay. Having and using a credit card is great for an emergency IF you need to, but you’re better off saving up a cash emergency fund for that.

Second, you may want to consider stocking up on items. Keeping a food storage for at least essentials is a great idea. In the same vein you can save a ton of money on this sort of stuff by using coupons. If you watch the show “Extreme Couponing” on TLC you’ll learn that it’s possible at times to go to the store, and rack up a bill into the hundreds and only pay a few bucks when it’s time to whip out the cash. Very exciting and a great way to stock up fast.

Lastly, and this is one that most people won’t tell you. You can’t depend on your job to always be there anymore. Unemployment is rampant, and it doesn’t take much for a company to go south and have to lay people off.

In that case you need to have an income coming in that you can rely on whether you’re employed or not. But the hard part I know is having the time to start a business while you’re trying to keep that job that you need in these hard times.

That’s why a home business is the perfect insurance for a loss of income. You can work your home business on your own time, and actually make part time in a lot of cases more than you make at your current full-time job.

But what’s the best home business to start? Well in my opinion it’s most definitely something that’s going to provide you with a residual income. This means an income where you’ll get paid over and over again for the work that you do just once. This way, the work that you do while you’re working your nine to five job will pay off over and over again, even while you’re at your job. It’s perfect. It then begins to snowball quite quickly.

So there you go, personal finance facts that will help you survive the hardships of these economic times, and one that will have you coming out the other side smelling like roses.

Home Based Business Dos and Don’ts – Advantages and Disadvantages

Don’t make the mistake most people make when filing their home based business. The greatest advantage of a home based business are the hundreds of deductions you are entitled to. These deductions can afford you a larger tax refund if applied correctly. These are deductions that can generate $3,000 – $9,000 in tax savings. However, there are disadvantages to other deductions that will raise a red flag with the irs, and you want to avoid those mistakes.

The IRS expects you to file a lot of the common expenses, but for the not so common expenses make sure you have receipts for those. The more expensive the expenses the more chances of you having to justify it, if you’re audited.

The IRS will never let you know you are going to be audited, that is one of their most well kept secrets. They want you to think their audits are at random, but they know exactly who they’re going to audit each year.

Your home based business is reported on “Schedule C” form. Here are some of the things to remember when filing:

Do’s
1. Claim all profits from your business as income.
2. Claim any employees you may have working for you.
3. Claim any mileage and make sure it is documented.
4. Check all your calculations before mailing or e-filing.
5. Make sure your tax return is legible.

Don’ts
1. Don’t pad your expenses, you might have to justify them.
2. Don’t deduct things you are not entitled to.
3. Don’t claim children that are not yours.
4. Keep business expenses separate from personal expenses.
5. Don’t leave out any irs documents (1099, 1099 misc, int, etc).

The more complicated the tax return the more chances for errors. People with businesses, rentals, or investment portfolios, just to name a few, are more at risk of being audited. They are more likely to make errors. The IRS would gladly audit you for thousands of dollars rather than some small fry for a few hundred dollars.