As I have mentioned a couple of times in other blog posts, this has been a rough 6 months financially. Now, we face another financial set-back and a bigger life  hurdle. My wife has been sick on and off (mostly sick) for the past three months. They would put her on an antibiotic, she would get better; but then as soon as she was off the medicine she would get sick again. So far she has been on 4 different antibiotics. After numerous tests, blood work, 2 specialist doctors, it appears that she will need sinus surgery in the next few weeks. According to the Ear, Nose, Throat Specialist, her sinus’s are really messed up and need some major work. At this point my wife is excited that there is hope for getting her better. We have talked to several people who have had sinus surgery and they all said it was worth it – they feel so much better. That at least is encouraging. We wont know the date of the surgery until later this week.

So far this year we have spent $2900 on medical bills and supplies. Our deductable for the upcoming surgery is only $750.  Still, we  really need to tighten our belts and put our savings to the max. We have used all of our Flexible Spending Account (medical savings), and we still need to get the girls to the dentist this year. I have already redid our budgets once, but I will probably have to tweak them some more. My new financial goal for this year is to make it through without having to go into debt!

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The post I had written for today I scrapped – it was about Net Worth. My Net Worth is sinking by the day! Now added to our long list of things breaking down is our Dodge Caravan. Coming back from dropping off the children at Grammy and Pappy’s house (my parents), the Caravan decided to kick the bucket. Fortunately I was able to get it safely off the side of the road at a decent location. One good thing was that I was only about 5 miles from home (rather than the 60 plus miles at my parents), and that I had already dropped off the children.

I was able to get a hold of a friend (who is also my mechanic!) and he towed it for me – he even dropped me by my house so I could get home – my wife was away for the weekend with the other car!

So we now have to say goodbye to our Caravan – it is not worth investing the money to get the transmission fixed. So we are going to buy a high mileage vehicle with cash. If the vehicle we are looking at can last a year, we would be okay (actually a little ahead). If it could last 2 years, we would be in good shape to purchase a nicer vehicle. We don’t want to have a car loan – I do not like having a loan for a depreciating asset.

So now I am redoing the budgets so we can save to the max – (1) saving for a new used car (2) building up the emergency fund.

So, in the last 6 months we have had the following:

• Well Pump gone bad
• Water Treatment System repair
• Water Heater die
• Replace 2 windows (leaking)
• Braces for oldest child
• Car transmission

Good thing we had an emergency fund! Now we have to really tighten our belts and get saving again.

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I  received my 2010 Consumer Action Handbook in the mail last week. Every few years I order a new copy for my files. I like this resource because (1) It is Free! (2) It has some good consumer tips (3) It has a good consumer assistance directory.

You can order this handbook  from the General Services Administration at www.consumeraction.gov. It has four parts to it:

1. Being a Savy Consumer. This section has 20 categories covering such items as banking, cars, credit, housing, insurance, privacy protection, wills and funerals, etc. The information is pretty basic, but it’s a good start.
2. Filing a Complaint. Gives you steps in how to resolve a complaint. Pretty good.
3. Key Information Resources. This gives information that would be helpful for teachers and military personnel.
4. Consumer Assistance Directory. This is the goldmine section. You get addresses, phone numbers, internet resources for all kinds of consumer needs. Listings for State Insurance Regulators, State, County, and City Consumer Protection Offices, Federal Agencies (that I didn’t even know existed!), Corporate Contacts, etc. It’s a handy reference guide.

When you order the Consumer Action Handbook you will also get a Consumer Information Catalog that lists other free and low-cost publications.

Overall, this is not a bad resource to have if you live in the U.S. It can come in handy from time to time.

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Having trouble with your filing cabinet? Is everything filed under miscellaneous? After doing your taxes this year you promised yourself you would have a better filing system? Want a simple and relatively inexpensive solution?

A few years ago I set out to redo my files. I wanted some guidance for the categories I should set up. So I did what I normally do – I searched the web. I came across the site http://www.homefileorganizer.com/. For $25 you can have a complete filing system in place and ready to go! (FYI – I am not affiliated with this company, nor am I getting anything in return for recommending their product – I just happen to use it myself). It is a pretty good system – you get 2 index cards that have all the categories on them (so if you forget where you may have filed something you can look on the list to see where they recommend you file things). You also get 22 lamented file divider cards – this is what I really liked.  Sure, I could have hand written my own file folders – but if you have ever seen my handwriting you know why I didn’t!  Just drop each file divider card into its own manila folder and put them in your file drawer and you are ready to go!

In addition, you get a financial planning organization handbook that is helpful. It covers such things as safeguarding valuable records, the IRS and your files, how to use the quick-find index, and covers some basic organizational principles. It’s written by J. Michael Martin and Mary E. Martin, both of whom are Certified Financial Planners.

Sure, you could set up your own filing system (I have several times in the past), but this is so easy and useful that I didn’t mind spending the money. There are a few categories I wish they had added, so I did have to make a few extra categories to suit my needs: research (for information on things I might purchase in the future), computer (for all my computer stuff), utilities (some people throw away after paying – I need to keep for a year for tax purposes), etc. But overall I have enjoyed using it.

Do you use your own system, or maybe some other company’s system? Let us know and share your filing tips!

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If you have been around the net, you may have heard about the “Value Added Tax” or VAT. But what is that? Simply put, every time value (as determined by whoever is in charge of the tax) has been added to a product, a tax is accessed. If a product has value added three times, it would be taxed three different times. The tax amount could be the same each time or it could vary depending on how the VAT is set up. For example:

1. A tree is cut down in the forest, limbs trimmed, and hauled off-site to a lumber yard. A tax is added because value has been added.
2. The tree is made into lumber (2×4, 4×4, etc.). A tax is added because value has been added.
3. The lumber is sold to a manufacturer who turns the rough lumber into smaller wooden pieces (cutting, sanding). A tax is added because value has been added.
4. The small wooded pieces are sold to another manufacturer who then turns the pieces into a box. A tax is added because value has been added.
5. The box is sold to another manufacturer who takes the box and turns it into a music box. A tax is added because value has been added.
6. The music box is sold to a local craftsman who paints it and finishes it. A tax is added because value has been added.

In the example above, the item would have been taxed six times before being sold (with a sales tax added at point of sale, making it taxed seven times!!). And although it is touted as a manufacturing tax, it is ultimately the consumer who will pay all the accumulated taxes. My Dad did his MBA thesis on the VAT tax. His conclusion, and mine, is that this is an economy killer. Not only  does the tax burden increase, but the cost of complying with all the regulations is burdensome. Every manufacturing step has paperwork, oversight, and regulations. The cost of doing business will escalate.

On the bright sight, it will make us all savers because we will not be able to afford to buy things!

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Caught a stomach flu bug and feel lousy. Will finish the current series on the Bankruptcy of America next week. Hope you are having a better day than me!

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I found an interesting web site the other day sponsored by Visa -  www.financialsoccer.com. It is just what the name says – financial soccer (they also have an NFL version).

It is roughly based on world cup soccer – you get to pick your team (country), and your opponent. You get to choose the length of the game – 5, 10, 20, or 30 minutes long. You choose whether to be an amateur (ages 11-14), semi-pro (ages 14-18) or world class (ages 18 and over). You can choose whether to do a pregame, single player or head-to-head game.

Once you start the game, you move the ball down field by answering financial questions. Each time you are given an option of either an easy, medium, or hard question. Based on the difficulty level is how far you move the ball down field. Once you have answered multiple questions correctly, you have an opportunity to try for a goal. If you miss a question, you turn the ball over. Once your “opponent” has the ball, if you answer a question correctly, you steal the ball back.

I tried a 10 minute game, U.S.A. (me) verses Italy. I won 4-0. Overall, the questions are not to hard, although they do throw some trick questions in. The graphics are good, and it was a fun way to test my knowledge. There is a little pressure as there is a timer that runs (you only have so much time to answer a question).  I think this would be a great thing for kids.

Try it out and let me know how you did verses the “competition”.

Hi there - could you help spread the word about A Penny Saved? We rely on word of mouth to get new readers. If you would send someone a link, email, or even mention it to your friends, I would truly appreciate it. Soccer, Finances, and Fun is a post from: A Penny Saved, the best darn personal finance blog around.

Today my wife and children are going to pick apples in a nearby orchard. Soon we will have the “fruits” of their labor – apple pies, apple crisp, and apple sauce! So to celebrate one of my favorite times of the year, I am going to share my wife’s recipe for apple pie or apple crisp. If you remember a previous post, you can freeze some of your apples and ingredients to make kits for quick deserts later. Enjoy!

Ingredients:

• 8 medium apples: peel, core, slice
• 3/4 cup sugar
• 3 tablespoons of flour
• 1/2 teaspoon ground cinnamon
• 1/8 teaspoon ground allspice

Apple Crisp:

• 1/2 cup quick cooking oats
• 1/2 cup all purpose flour
• 1/2 cup packed brown sugar
• 1/4 teaspoon baking powder
• 1/8 teaspoon baking soda
• 3 tablespoons cold butter or margarine

Combine the first five ingredients in a 2 quart bowl. Cover with lid and shake to coat evenly. Place coated apples in a bag and freeze. When ready to use, thaw in refrigerator.

For Apple Pie:  Place mixture in prepared pie crust. Top with second crust or crumb topping and bake at 450 for 25-30 minutes.

For Apple Crisp: Pour thawed apple mixture into 8 inch square baking dish. Combine apple crisp dry ingredients then cut in butter until mixture resembles coarse crumbs. Sprinkle over apple mixture. Bake at 350 for 55-60 minutes.

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What time is it for you? Is it time to spend–on a home, repairs, a car, education? Or is it a time to save–for retirement, emergency fund, education? For me, it’s a little bit of both. I have been saving for retirement faithfully, and spending on some repairs on the house. My next savings goal is to get our emergency fund built up a little (it has taken some hits lately with car repairs). But throughout our life there will be seasons for spending and saving. Think about your finances as you read this passage from Ecclesiastes:

There is an appointed time for everything. And there is a time for every event under heaven–a time to give birth and a time to die; a time to plant and a time to uproot what is planted. A time to kill and a time to heal; a time to tear down and a time to build up. A time to weep and a time to laugh; a time to mourn and a time to dance. A time to throw stones and a time to gather stones; A time to embrace and a time to shun embracing. A time to search and a time to give up as lost; a time to keep and a time to throw away. A time to tear apart and a time to sew together; a time to be silent and a time to speak. A time to love and a time to hate; a time for war and a time for peace.

What time is it for you financially?

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Our 1995 Dodge Caravan (I can’t believe it is 14 years old!) had to be fixed last week. About 2 weeks ago we started smelling gas – rusted gas tank! Even though the gas tank had a leak, on the bottom no less, we didn’t see any difference in our mileage. That’s sad. Anyway, my auto budget will take a hit again!

As a side note, I’ve been reading with interest about the auto trade in program that the president has signed into law, the Car Allowance Rebate System (CARS). If your car is less than 25 years old and you purchase a new car that gets 18 mpg or better you may be eligible for $3500 or $4500 trade in allowance toward a new car. For fun I went to Ford’s Web Site to see if my van qualified.  It did. I am not planning on trading it in. The van is running well, it is paid for, and we are content. Maybe in a year or two we might be in the market for a new to us used vehicle.

Hi there - could you help spread the word about A Penny Saved? We rely on word of mouth to get new readers. If you would send someone a link, email, or even mention it to your friends, I would truly appreciate it. Van Repairs and CARS Program is a post from: A Penny Saved, the best darn personal finance blog around.