4 ways tracking expenses helps when filing taxes
Years ago I started tracking expenses simply to see how much I spent and earned. I was thrilled to see how writing down all my purchases made me more aware of my spending habits. I ultimately became more conscious of my spending and ended up saving a lot more money ...

4 stupid things people do when researching tax information online
Are credit card opening bonuses taxable? When is the deadline for contributing to an IRA? These are just a few of the questions people will be searching for with tax time just around the corner. These days, it will not be hard to find the answers online. There are so many good ...

Year End Financial Checklist, 2010
The end of the year is an interesting time financially. It's a natural time to review the last 12 months and plan for the upcoming year. It's also a time to take action. Because many financial activities like taxes and insurance are based on the calendar year, it's important to take ...

Doing taxes at the last minute
Patterns are fun to find in Google trends, a tool that visualizes search traffic volume. Look at the graph for the search term IRS in the United States: The graph generally has two spikes yearly. Why might this be? I'll take a guess. The first spike is in Jan-Feb when people are ...

Think about more than timing: 6 questions you should ask yourself before making any investment
While there are many issues to consider when investing, most people make a decision based on a single question: "Is it a good time to buy?" I can sympathize because I used to think that way. My first investment was a speculation on an airline stock since I had a hot ...

A big reason why you should track your expenses–money flows are complex
Most of the people I discuss money with track their expenses or agree it is a good idea. But not everyone is convinced. Here is a comment I received earlier this week: Presh, I sort of see your point about tracking expenses, but isn't it overkill? I seem to do just ...

A free spreadsheet to track your expenses
(To download the file, see the "expense tracker" file in Financial Tools page) Tracking your money is perhaps the most powerful step for saving money. But what is the best way to do it? Programs like Microsoft Money and Intuit's Quicken are great but I think they are too sophisticated for beginners. ...

Are You Eating Your Retirement Savings?
Some of my acquaintances think it's impossible to save nowadays. They say there is nothing left after taxes, housing, and basic social expenses. One person even said it's getting to the point that $50,000 is not enough to live in Chicago. This seemed curious to me, so I started a discussion ...

The Crummey trust and game theory: understanding the grim trigger strategy
My friend never broke curfew during high school. The consequences were too dire. His parents had threatened to cut off his allowance and scale back on helping him pay for college. Years later I would recognize the parents' strategy as an important game theory concept. They were playing what is known ...

Understanding how taxes affect personal finance
I like to pay taxes. It is purchasing civilization--Oliver Wendell Holmes Taxes are a big consideration in many financial decisions, including retirement accounts, tax-advantaged investments like municipal bonds, and renting versus buying a house. These financial decisions are so important that knowing basic tax information is critical. Here are four traits ...