Tax Fun Facts

Is it really fair to place the words “tax” and “fun” next to each other? We’ll let you decide, but with April 15^th bearing down on us, here are some interesting–if not fun–tax facts to divert your thoughts for a few minutes and hopefully lift your spirits.

• The first property tax in the United States was in 1798.
• The first US income tax started during in the Civil War to help raise money back in 1862.
• The first federal tax office in the US was the Office of the Commissioner of Internal Revenue in 1862.
• The 16th Amendment, ratified in 1913, established the first permanent US income tax. Four states rejected the amendment: Connecticut, Florida, Rhode Island, and Utah, and two never considered/discussed it: Pennsylvania, Virginia.
• The Gettysburg address, one of the greatest speeches in U.S. history, has 269 words. The Declaration of Independence contains 1,337 words. The Holy Bible consists of 773,000 words. Yet there are over 7,000,000 (not a typo that is 7 million) words in the U.S. Tax Code (laws and regulations).
• There were 402 tax forms in 1990, by 2002 that number jumped to a staggering 526.
• The number of pages in the tax code and regulations went from 26,300 in 1984 to an astonishing 54,846 in 2003. There are 500 pages in a ream (standard package) of paper–that’s nearly 110 reams of paper! A ream is about two inces thick, so if you stacked all 54,846 pages on top of each other, you would have a stack of paper 220 inches high, or about 18 feet tall!!
• The IRS sends out over 8 billion pages in forms and instructions every single year, that’s nearly 300,000 trees. (Thankfully, they now use recycled paper).
• The easiest form, the 1040EZ, has 33 pages of instructions–ridiculous.

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Minimizing the Stress of a Layoff – Part 1 of 3

Layoffs are commonplace in a sagging economy, and chances are good that you know someone who has recently been laid-off from his or her job. And it often doesn’t matter how good you are at your job or how hard you work. But a layoff doesn’t have to be the end of the world, nor should it be. The key to minimizing the stress and negative fallout is to know how to react if you are laid-off and to prepare now for the possibility of a layoff in the future.

If you’ve been following this blog, you know we recently posted information about Utah County’s unemployment rate. Fortunately, the Provo/Orem Metro Area ranks 27th out of 372 other Metropolitan Areas in the U.S. according to February 2009 numbers–so it could be lots worse. Nevertheless, while 91.5% of the workers in the Provo and Orem areas are still employed, there are an increasing number of good, honest, hard-working people who want to work, but who do not have a job.

If you’ve been laid-off, have hope. You will survive to work another day if you’re determined to work. You may even find a way to embrace the layoff for what it may be–the opportunity to make a career change that you’ve been considering for a while.

We don’t know about you, but we’re tired of hearing about hope and seeing nothing done. It’s time for solutions. We’ll be posting information we think may be useful for anyone currently employed, anticipating a layoff, or who may have already been a casualty of downsizing.

Please leave us comments with ideas or helpful information you have that may help someone facing the stress of a layoff.

Minimizing the Stress of a Layoff – Part 3 of 3

Here are some additional ideas that may be useful to help reduce the stress of a layoff, or to prepare for the possibility of one in the future:

Be Wise with Your Emergency Fund – This assumes you have an emergency fund. If you don’t have one, start one. Cut back on discretionary purchases and put as much of your paycheck into your emergency savings fund as you can. If a layoff has already affected you, cut back or eliminate unnecessary expenditures and be wise with your use of the fund. Our “How much should I have in savings?” post can help you determine the right amount to put away. And the information in our “Automate Your Savings” post can help you save effortlessly. Hopefully, if you do get laid off, you’ll also have a severance package that will help you pay the bills. However, the more you can sock away, the more peace of mind you’ll have if the axe falls.

Communicate with Creditors and Billers – One of the major stresses after a layoff is making ends meet. The more willing you are to communicate openly and honestly with creditors and billers, the greater your chances are that they will work with you to help you meet your obligations. It’s not a guarantee, but you may be surprised by what they are willing to do to help you.

Remember to Look on the Bright Side — At worst, getting laid off is a temporary trial (and you will get through it, I promise). At best, your layoff may be the kick in the pants you need to find a more fulfilling job. It’s surprising how often I hear people speak of being thankful for their layoffs (some of them volunteered or even begged to be let go). Their severance packages gave them the time and opportunity to pursue the careers of their dreams. If you’ve been unhappy in your current career path, this layoff may be your chance to explore your options.

Know What Resources are Available — There are many resources available to help if you have already been let go. The Utah Department of Workforce Services has offices in American Fork, Provo, and Spanish Fork with professionals who can help. The Church of Jesus Christ of Latter-day Saints has Employment Resource Centers available to anyone, regardless of religious affiliation.

Tell Everyone You Know That You’re Looking for a Job – Now is not the time to be the strong, silent type. Ask for leads from family, friends, and neighbors. Sometimes it really is who you know, not what you know that leads to a meaningful job opportunity.

If you have ideas or helpful information that may help someone facing the stress of a layoff please leave us a comment.

“You want to do what?!?”

A recent discussion with my wife about our long-term retirement hopes was very revealing. The discussion went something like this:

Wife: “When you retire I think it would be fun to go to culinary school together and consider opening a restaurant. We have so much fun in the kitchen talking and cooking.”

Me: “Yeah. That would be fun. It would be a lot of work, but it would be fun. But what I would really like to do when I retire is be Donald Duck.”

Wife: “You want to do what?!?”

Me: “I want to be Donald Duck at Disneyland or Disney World. I think it would be fun seeing all those happy kids everyday. Don’t you?”

Wife: “I guess, weirdo. But wouldn’t it be easier and more fun being with me doing something we both enjoy?”

At that point I knew she had issued a checkmate, and I had best think about my plans more as our plans to stay out of trouble. It was also apparent that both ideas carried financial implications we have never discussed. Culinary school and funding a business are not cheap, nor is relocating to Anaheim or Orlando.

Consequently, a study from Fidelity Investments indicates this type of discussion is not entirely unusual. It finds we are not doing a very good job talking about our long-term financial goals with our significant others.

The study reports that only 45% of couples regularly discuss finances. And when it comes to retirement plans, 60% of couples don’t agree when they’ll retire, and 42% are like me and my wife–they don’t agree on what kind of life they’ll lead after they retire.

Does your significant other know your financial goals? Do you know his or hers?

What Really Matters?

When the stresses of life and work bog us down it’s easy to forget the things that really matter or are of the most value to us. Here are three things that I have been reminded of recently that may be of some value to you, too:

Relationships One of my peers recently reminded me that while we’re working hard to handle the pressures of the economy on the bank and the daily duties we face, that we can’t forget we have families and relationships to strengthen. As one blogger effectively said it: “The regular companionship and camaraderie of people you care about and share interests with is continually life-affirming. [Relationships] don’t revolve around the things you have or the activities you can afford – they revolve around people and shared experiences.”

Gratitude I find that the more I’m focused on the things I do have, rather than focusing on that which I do not, that I am more cheerful and giving. I become more positive in my thoughts and speech. I become more content to work harder to reach my goals. I have more purpose in my daily actions and interactions. Cicero said “Gratitude is not only the greatest of virtues, but the parent of all the others.”

Service Helen Keller said, “Happiness cannot come from without. It must come from within. It is not what we see and touch or that which others do for us which makes us happy; it is that which we think and feel and do, first for the other fellow and then for ourselves.” It is in the act of helping others that many receive a great deal of personal joy and satisfaction – something that cannot be replaced by any sort of material item.

What really matters to you? What do you value most?

Summer Travel and Vacation Budgeting

Contributing source: PracticalMoneySkills.com

If your kids are like mine, they have made you keenly aware of the fast-approaching summer break. And with the summer kick-off holiday of Memorial Day just a few days’ away, summer travel and vacation plans are being completed at a feverish pace. So here are some things to keep in mind, lest you overspend and end up with a year’s worth of debt for your freewheeling ways.

Plan Wisely
To help you reduce the financial stress of planning your summer getaway, we’ve found a cool and free web-based “travel calculator,” designed to help you plan your vacation budget and stick to it once you’ve left home. The calculator will help you determine the cost of gas (updated daily based on national averages) for your trip as well as account for all the small things that really do add up, and, if you’re not prepared, sneak up and cause you headaches for the rest of the year.

Take the stress out of your next vacation
Jason Alderman, director of Practical Money Skills for Life, shares insights and links to websites where you can research and save money.

Don’t turn a glorious summer into a winter of discontent
Thinking of spending beyond your means for this year’s vacation? Find out what that will really cost with Practical Money Skills for Life’s Cost of Credit calculator.

Stop identity theft before it happens
Keep your identity safe and your money where it should be– in your account. Be aware of situations that identity thieves love.

Check your credit report when you get home
Even if you think you’ve kept all your information and valuables safe, we recommend checking your credit report for suspicious activity when you return home. Check out or last post, “Tips to Help Build and Maintain Good Credit” for more information.

Eating Healthy Without Breaking the Bank

I recently read an article in a SelectHealth publication about healthy eating that lead off with: “Do you go into sticker-shock when you load your shopping cart with healthy foods? A study in the Journal of the American Dietetic Association found that healthy foods such as lean meats, low-fat dairy products, fruits, and vegetables are significantly more expensive than junk foods.”

Oh. So that explains why I always fill my shopping cart with pre-packaged, pre-prepared foods–it’s cheaper. (Not to mention it usually lasts longer if I don’t eat it right away, and it’s less work.)

But what’s the trade-off?

Studies abound that show there are greater benefits from eating healthy foods like fresh fruits and vegetables than from eating the pre-packaged, pre-prepared foods. And other studies indicate that poor diets cause an increase in illness. And increases in illness usually cause increases in medical expenses. So is a less-than-healthy diet of cheaper, unhealthy foods less costly than increases in medical and prescription expenses? Probably not.

So here are a few tips for buying more healthy foods without busting your budget:

* Buy staples such as brown rice, oatmeal, and beans in bulk when they go on sale.
* Buy produce in season. Not only will it taste better, it’s usually cheaper. A local fruit stand like Verd’s Market on State Street in Orem or Chavez Fruit Stand in Lindon is a great place to look for deals.
* To lengthen the shelf-life of fresh foods like broccoli, cauliflower, carrots, corn, and other veggies you freeze at home, blanch them first. Put them in boiling water for one to three minutes, and then plunge them into ice-cold water. Drain well and then freeze in plastic bags.

For more tips on healthy eating and shopping on a budget, visit http://www.fruitsandveggiesmorematter.org/. For the complete SelectHealth article “Healthy Foods Don’t Have to Break the Bank” visit www.selecthealth.org/totalfitness, and click on the “Total Fitness Spring 2009″ link.

Of course, you can always plant a garden and a few fruit trees and grow your own healthy food, too.