Early Estimates Help

       Oliver Wendell Holmes, Jr. said “Taxes are what we pay for a civilized society.”  Now is the time to start organizing yours.  Gather all of your receipts and notes.  Look at major differences between your 2010 numbers and those for 2011.  You should have all of your W-2s and 1099s by January 31.

       The earlier you file the faster you can get your return.  Estimating your liability early, even if you don’t file early, will allow you to manage your budget more accurately. Dragging your feet until the last moment could be costly.

       This is also a good time to adjust your W-4 deductions.  You should only be withholding enough to cover your taxes; getting a big return means you let the government use your money, interest free.  Wouldn’t you rather have that money in your pocket?  If your refund totals more than $1000.00, you are having too much withheld.  A common strategy is to adjust your withholding and put the extra money into your emergency fund or retirement.  You won’t miss the money out of your check, you aren’t seeing it now, but you will be better prepared for the future

Home based business

       In today’s economy a lot of people who can’t find a new job are choosing to start their own business. This can be very rewarding, or it can be very frustrating. It is common for an aspiring entrepreneur to think that their hobby can be turned into a business. This may or may not be a good idea. You may lose the joy of your passion when you are forced to work at it every day or it may just not be marketable. However, it you have special skills, like sewing or cooking, you may be able to capitalize on these skills.
       A better idea is to research what is needed in the marketplace and create something from that list. It takes more than passion and motivation to make your new business work. Consider your skills and interests. Income potential should not be the only reason for your ultimate choice. You will be doing whatever you choose day in and day out; it better hold your interest.
       Do you like to write; how about publishing ebooks, editing, or newsletter services? Are you moved by helping people; think about babysitting, senior in-home care, personal shopping, or conducting tours in your local Community. Pet services, cleaning, plant care, or bookkeeping are all possibilities. One of the most popular, of course, is online selling through eBay or Etsy. You are only limited by your budget and your imagination.
       The most important part of getting started is doing your homework. If you are not seeking grants or loans you may not need a formal business plan, but you do need a marketing plan. You have to differentiate yourself from the competition and determine how you will attract customers. Before that you will have to determine the type of business you want, if there is any special licensing required, and how you will operate.
       Yes, this does sound like a lot of work, but it is mandatory if you are to have any chance of success. You can’t build a house without a blueprint and you can’t succeed in business without a good plan.

It's That Time Again

It is about this time of year that we start evaluating what happened this year; what was good, what was bad, what should be changed in the upcoming 12 months. Typically, we only look at the highlights instead of really putting some concentrated thought into the whole year. This usually leads us to making "New Year's Resolutions" that probably last more than a few weeks, or days.


Resolution (decision): a firm decision to do something. This is a pretty scary thought. That's why most resolutions don't last. Making resolutions sets you up for failure, they are too inflexible. If the situation is not the product of a commitment to self analysis, making a broad promise is a direct path to guilt and self abuse. Making a resolution to lose weight next year is doomed to failure unless it is less generic and more specific. Telling yourself instead, or better yet journaling, that by the end of next year "I will lose 20 pounds in order to make my blood pressure lower. I will do this by (insert your specific game plan here) "will give you a better chance of victory. Now you have a plan for success, with specific parameters, that will assure you a greater chance for success; and you won't have to suffer the guilt of failure.

This best way to make this system work is to take the time to study your core values. This can be a frightening task, but I assure you that the results are worth your effort. Actually, I have noticed that the process is more important that the answers. Nobody will ever see your list, unless you choose to share it, so you can be brutally honest. This is the hardest part because we don't really like to look at ourselves up close, but we should. Also remember that your list is not cast in stone, you should review it at least once a year and make any necessary changes.

Your Core Values can be one of the most powerful tools in your toolbox. You are judged by how you appear, how you act and how you react. Knowing yourself well will help you make the kind of decisions that make you stronger and inspire the people around you.