Super Football

Most Americans will watch tomorrow's big game. We will be cheering on the Steelers because we have a friend who is so excited about the game but really we want to see a good game. A back and forth, exciting game.

There is another spectacle we will see at the same time. I know there are millions of $ less being spent to advertise than originally planned. Some big spots will be vacated because the company is laying off thousands of employees. They felt it was the best thing to do in light of their new economy.

As you watch these creative vignettes, ask yourself what they are selling. The big horses, spotted dogs and conversing frogs are selling beer. The baby at the keyboard wants you to use his brokerage firm. What were the cowboys herding cats selling?

The world of advertising has surely done a number on us all. We are convinced that "they" know the way to happiness. The pursuit of happiness for us must include their shipping trucks, their green cars, their laxative, their online employment company.

In the end, we need to examine what is our true happiness. It is smooth skin, a flat screen tv, and new pair of shoes? Are those not temporary happinesses? What is your true happiness?

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Spending, spending, spending

The $819 Billion spending package (it will not stimulate any new jobs or any new productivity - a stimulus bill should create jobs not push social programs) passed the House and is on its way to the Senate. The burden of ownership rests solely on the Democratic party. The vote was down party lines.

I found an interesting quote. FDR’s Treasury Sec. Henry Morgenthau Jr., architect of the New Deal: "We have tried spending money. We are spending more than we have ever spent before and it does not work.”

If Government Spending solved recessions, we would never have recessions.

Another interesting fact: "$819 Billion is equivalent to borrowing $10,520 from every family in America. This borrowed money is equivalent to what the average family spends on food, clothing, and health care in an entire year."

I no longer read newspapers. I leave that job to Bob. He gets two daily publications delivered to the house. I gather my news from the radio, a little from TV, and from the internet on sites like The Heritage Foundation.

Since you are already on the internet, use it for current events. Weather.com is quicker than waiting for "the 8s" or the evening forecast.

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Huge Hurry

This stimulus plan (which will create jobs but can not stimulate private industry) is being rushed through. Why the rush? We rushed through BILLIONS in October which did not work. Why would any sane person rush through another BILLIONS pork laden bill?

They want Republicans to come on board. Why? They do not need their votes to pass this monstrosity. It will fail and the only ones left holding the bag will be the Dems. Let it be that way.

I have written 5 congressmen and will continue to contact others all day today. I am encouraged by some publications that reveal there are some sane voters out there.

The best is an article in the Houston Chronicle today:

“Redistributing hard-earned tax dollars will do far more to expand the power of the federal government than it will to stimulate the economy,” said Rep. John Culberson, R-Houston. “This legislation is a Trojan horse that liberals are using to ultimately turn America into France, because it contains massive expansion of multiple federal programs that are utterly unrelated to stimulating the economy.”

“In the end, you still cannot borrow or spend your way to prosperity,” the newly elected Republican said. (Pete Olson)

“I can’t find an economist anywhere who will admit that contraceptives, zoo exhibits and repairs to the Jefferson Memorial are serious economic boosts,” Brady said. (Kevin Brady)

Some sane people will vote against this bill but it will pass and we will be spending millions and millions to make jobs and turning ourselves into a socialistic nation. Big government keeps people dependent. Soon the independent move that settled this great nation will be dead.

I need to learn more about socialist systems that work. Wish me luck. Should I start with France. They seem to have a great system.

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Standard Deduction

Do you itemize on your 1040 (federal individual income tax return)? On your Schedule A you can claim your real estate taxes, your mortgage interest, state and local income taxes paid, and charitable contributions along with medical expenses (above 7.5% of your adjusted gross income) and job and miscellaneous deductions (above 2% of your AGI).

That total (unless it is reduced due to incomes over $159,950 for marrieds) carries forward to page 2 of your 1040. If your total does not exceed the standard deduction, you will claim $10,900 on a Married Filing Jointing return. If your real estate taxes exceed $1,000 your standard deduction will be increased to $11,900.

Just beyond that point of your return you reduce your income by exemptions claimed. If it's just you and your spouse, you claim 2 exemptions which are valued at $3,500 each.

Many couples will reduce their AGI by $18,900 to reach their taxable income. Just thought you'd like to start thinking about your taxes as you gather your documents over the next few weeks.

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Quick Look

A quick look at the "no pork" in the economic package that will become law by the end of the month.

Here are few things included:

--$600 million to “prepare our country for universal healthcare” [it's coming and they want us all open to the idea so Big Brother is spending $ to help us accept it]

--$1.5 billion to build new “Community Health Centers” [abortion centers coming near you]

--$20 billion to provide “nutrition assistance” for middle-income families and to lift restrictions on how long people can receive food stamps [no nutritional help for the poor?]

That totals over $22 billion. The government will soon be taking care of my health. Can I relax? No. After they electronically capture my medical records [part of the economic plan], they will see how high my blood pressure is and how much I weigh. I will be denied care unless I lose weight and eliminate all sodium from my diet.

Sounds ludicrous? What about you? Will you have to wait for a hip replacement? Will you be put on the list for chemo when the cancer is discovered when you are at your once-a-year visit with the doctor?

But I digress. The bill is full of "pork" for communities and special interest projects like the arts, parks, and government buildings. Make work items.

Here's another interesting piece. "$1.2 billion to create an estimated 1 million summer jobs for young people." Can we do the math? It will only cost us $12,000 per young person for them to earn minimum wage corralling little rangers around a state park for a shift a day.

Our summer workers will earn income and receive a tax credit or a tax cut or just plain $ back from us after we create their summer job. Lucky kids.

No pork.

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Content of Character

Dr. Martin L. King, Jr. in 1963 said, "I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character."

This is my dream too. But I asked myself why are we always divided by race? We are grouped by union membership, by race, and by sex. The Democratic party has long courted and won the vote of blacks, Hispanics, unions, and the poor. One would think they were the party of Lincoln. One would think they were the authors and cause of the passing of the Civil Rights Amendment. One would think union membership caused a conversion experience.

Yet, smack at the end of the inaugural on Tuesday of our first black president, Rev. Lowery, prayed solely about race: "...when white will embrace what is right." Evidently white is not right.

Our new Secretary of Labor, Robert Reich, said this week, "I am concerned, as I’m sure many of you are, that these jobs not simply go to high-skilled people who are already professionals or to white male construction workers…" He continued to purport that the funds would go to "others" and listed who he meant by group (i.e. women, minorities, poor). White is not right for the $.

Two Republican senators (Kyl - Ariz. and Bunning - Ky) drilled Timothy Geithner upon his confirmation hearings this week. They asked the hard questions while others just nodded understanding the misunderstanding in regards to unpaid taxes. Mr. Geithner is now our new Secretary of the Treasury. His duties include overseeing the IRS.

Mr. Geithner should have been judged by the content of his character which is a tax cheat but he was not. He was easily confirmed. When asked why he did not pay taxes he owed for the mistakes he made the years he did not get "caught" by the IRS, he all but affirmed he didn't because he wasn't asked to. Some character.

Please judge not on skin color but content of character. However, except when awarding jobs, scholarships, government positions, underwritten forgiveness of mortgages, and bailout construction work. White is not right. Talk about race discrimination.

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Gas Bill

Our latest gas bill came yesterday. It covers December 16 through January 15. We heat with gas, dry clothes with gas, and heat our water heater with gas. We also have a natural gas grill out on the patio but it hasn't been used much lately.

Our bill, $185, is due February 6. I suspected it would have been worse and maybe the next on will. The previous bill was $177.

I promised that I would share the cost when it arrived. I'm sure yours is high as well.

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Waiting Game

We're in the Waiting Game. We have a new president who has a creative economy rescue plan. President Obama has painted a dire picture of things for years to come.

We will not feel any step forward until 2011. That's about 2 years from now. Meanwhile, we are spending faster than the presses can print the $. Can anyone spell inflation?

The stock market experienced the largest fall for a presidential inaugural day ever. The stock market holds the pulse and we are all watching it.

We are in the waiting and watching mode. Few are spending $ and most are scrambling to refinance mortgages and pay down debt. Lock down mode for now, holding onto jobs if we have them.

I wonder if anyone in government, especially Obama's economic team, considered bringing in or even listening to someone who has experience running a large company....or even a small company. Soon there will be thousands and thousands of manufacturing execs looking for jobs.

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Gathering Info

This is the month most of us receive important pieces of paper. Remember to open every envelope. Even odd looking documents from your mutual funds and brokers may be needed.

Bob and I have a gathering envelope near the phone in the kitchen. It's one of those plastic see-through letter size files that close with Velcro. We put everything in there that might be needed.

Needed for what? For our taxes. We will be getting W2s and 1099s plus statements of activities that may be reflected on our 2008 tax returns.

Our envelope already has 3 W2s and a postcard from the State of Illinois itemizing the amount of tax refund we received last spring from filing our 2007 taxes. We also have received our tax booklet for 2008 from the state.

I have stuck our checkbook register for the year in there plus all the charitable receipts and statements. By gathering all those pieces of paper in one place, it will help when we sit down to do our taxes.

Get your own method in place to catch all those numbers you will need between now and April 15.

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Take Note

Tomorrow all eyes will be on Washington and the inaugural celebration. We all remember pictures of history of presidents bracing against the cold of January on the steps with their hand raised and their family gathered around. Later pictures of fancy balls across the city.

Many of us remember most vividly the swearing in of our 36th president in November 1963 aboard Airfore One. You can see his wife and the Widow Kennedy witnessing Lyndon's pledge.

In 2005, President Bush was highly criticized for holding a celebration since we were at war. His events cost $40 million. The outrage was loud. How could he?

According to the AP: President Roosevelt held his 1945 inaugural at the White House, making a short speech and serving guests cold chicken salad and plain pound cake" ...."During World War I, President Wilson did not have any parties at his 1917 inaugural, saying that such festivities would be undignified."

And yet, we are told the inaugural of Obama will cost better than $150 million. No outrage? According to the A/P: Despite the bleak economy, however, Democrats who called on President George W. Bush to be frugal four years ago are issuing no such demands now that an inaugural weekend of rock concerts and star-studded parties has begun.

Double standards all over the place. There is no fairness. Remember that as our Congress works hard to spread the wealth so that no one has a job by the end of 2011. Mark my prediction. We all dance on our way to the end of democracy in the name of fairness.

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Warm Trap

It's been so very cold, frigid actually, that Bob and I have stayed home. It has been 13 years since we have been this cold. The forecast is snow and temperatures closer to freezing than the negatives we've experienced recently.

I find myself complaining but we are warm. We each watch TV from under afghans, in our sweaters, and with a cat on our lap.

Our hearts have gone out to people who faced nearly impossible commutes and those that work outdoors like the garbage collectors and mail carriers.

It's easy to complain until we remember how fortunate we are. I try to find contentment in our warm trap. I'll let you know what our gas bill is for the month.

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Bush Farewell

George W. Bush said his good-bye last night. I believe this man did his best. His campaign promises and goals were side railed nearly 8 years ago when the United States was bombed 3 times one morning in September.

W. has kept our soil safe, our lives protected, and has led the free world to uncover our enemy. We have sent our troops out to answer the call to war. George W. has strengthened our military which Clinton had slashed in half.

It is true his ratings have not been good these past 3 years but they have been better than those of Congress.

I believe history will reflect his strengths. I do not mean the history taught our children through publications that say less about Ronald Reagan than they do about the illustrious reign of the peanut farmer.

Let's keep in mind that Reagan became president when unemployment was well into double figures and mortgage rates were as well. He did not focus backward to Carter but ahead to better days.

Let us revisit history and judge our new president against the example of Ronald Reagan who cut taxes and gave us all encouragement as we came back from that recession. To say nothing of the political changes in the world under his watch.

I do not hope Obama does well. I hope Americans are given all the opportunities possible to climb back out of the hole that continues to grow and grow.

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Last Installment

The last installment of your quarterly payments toward 2008's liability is due today. It must be postmarked on or before January 15. Your state fourth quarter payment is also due today.

In three months, you will face the April 15 deadline for filing your 2008 taxes. On your returns you will list credit for the four quarterly payments you have made. They were due April 15, June 15, September 15, and January 15.

Take a quick minute. Grab your last pay stub for 2008 and find the year-to-date amount of federal and state income tax withheld. Grab your 2007 tax returns and compare your liability for that year with the withholding made toward 2008. If there is a shortage in comparison, it would be wise to make a quarterly payment today.

Forms are available on line as well as address where to mail your check. This quick exercise should help you avoid late payment penalties when you file your taxes in April.

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One Stone

We kill two birds with one stone. Our house is fairly dry and we get static shocks reaching for light switches and door handles. We do not run a humidifier but we do add moisture to the air.

I often enjoy a cup of green tea in the late afternoon. The tea kettle spits up some as I run to answer the whistle. We air dry our dishes using the dish rack when we hand wash and open the machine before the dry cycle if we use the dishwasher.

But one practice I use year round is that I do not run most clothes completely dry in the dryer. I washed 3 loads yesterday and all door jams have hangers spaced across them. Later this morning I'll run them up to the closet so it's only for a day that we have our clean laundry adding moisture to the atmosphere.

Our dryer is used for several loads a week but not for jeans, dress clothes, knit tops, and dress shirts. I tumble those for a few minutes and grab them out. After a quick shake, they are placed on hangers. We save on gas, wear on the machine, and add moisture to the house.

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Counting the Cost

Sometimes it's hard to determine the true cost of something.

For an experiment, let's start with your per hour earnings rate. Let's use $14.50 per hour. If you reduce that by social security (6.2%), medicare (1.45%), federal tax withheld (23%) and state tax withheld (3%), you are left with $9.62 take home.

For purposes of quick calculations, let's call that a take home pay of $10 per hour. Get your figure established before you next go shopping.

I think a carton of cigarettes costs more than $30. Therefore, you would work 3 hours to make that purchase.

If your minimum credit card payment is $120 a month, you give 12 hours of your time and talent to your employer to make that payment.

If your childcare costs are $70 a week, you have to work 7 hours (nearly a whole day) to pay the sitter.

If you heating bill that just arrived is $180, you work 18 hours or over 2 full days to meet that obligation.

Depressing or realistic? Just use this calculated number when you are faced with a need versus a want. Check your next pay stub. Divide the net by the number of hours to get your real net take home per hour.

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Nearly Too Late

Bob and I are joining a discussion group on Saturdays this month and next at church. We were told we could find the book at Costco or on line. Bob called the Borders nearby and they said they had several copies but when he got there the books set aside for us were written by Steven King.

On January 2 we decided we'd place an order on Amazon. In order to qualify for free shipping, I included 3 other books I had in my on line "shopping basket."

Last Sunday there were a few copies of the book at church for sale but I told Bob I had received an email that the books were shipped. They had been but I had not read carefully enough to see that they were expected to arrive via the US postal service today, January 10.

Free shipping = slowest shipping. The good news is the box arrived yesterday. We have each finished our assigned chapters in preparation for our class which meets in 2 hours.

A bargain can cost time or inconvenience but saving $ helps. Note: I would have purchased the other books eventually. This was my opportunity to save on shipping costs.

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Yesterday's Speech

President Elect Obama, who will not comment on the Gaza War, said yesterday, "I don’t believe it’s too late to change course, but it will be if we don’t take dramatic action as soon as possible. If nothing is done, this recession could linger for years."

He continued, "Banks made loans without concern for whether borrowers could repay them, and some borrowers took advantage of cheap credit to take on debt they couldn’t afford." As I recall Congress dictated loans be made available to those who could not qualify. Our thanks go back to President Carter with President Clinton banging the drum loud enough to bring about change in lending practices. But, most of all, we owe applause to Barney Franke who insisted that Fanny Mae and Freddy Mac would cover all sub loans.

Obama stated his core objective with: "It will take time, perhaps many years, but we can rebuild that lost trust and confidence. We can restore opportunity and prosperity."

He lost me completely with, "Only government can break the vicious cycles that are crippling our economy." Only government. Bigger government. Government control. Government will feed us, watch our health, protect us from lead in all toys made in the U.S., tell us what not to believe/what to believe, dictate the type of vehicle we drive, and put a cap on what we can earn.

I know what would get things moving again and I'm not smart. Slash corporate tax rates in half. Make the Bush tax cuts permanent but go a step further and lower the highest rate by a third.

Step back and watch the market. The market has not liked one step toward bailout so far. Printing more $ seems to make all investors nervous and has caused many to move out of stocks and bonds and into cash. Beyond that, many have taken cash out of their banks.

We need growth. We do not need more regulation. We do not need the government except to ask her to move aside. No tax cut or stimulus check or more printed $ to gift to industries from banking to porno will provide growth.

Please, Mr. President Elect, do these simple things and concentrate on what you will say about Gaza bombing Israel.

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Defining Things

When I go to see Theresa every 8 weeks or so, I need a hair cut. That means my hair has grown too long and it needs trimming back. If I had no hair, I would not need a hair cut.

When we're out of town, we call Mr. Dwayne and he mows our lawn. Bob calls him and asks him to cut our grass. If we didn't have a lawn that had grown too tall, we would not need our grass cut.

If a business makes not profit, it does not need a tax cut or an increase in its expenses.

If an individual makes no $ and pays no income tax, he/she does not need a tax cut.

By definition, those without do not need them cut. Let's keep those definitions in mind. I have not found Obama's economic stimulus plan on line. He has promised to post it so we all can read it.

If you don't have hair, you don't need it cut. If you do not have a lawn, you do not need it cut.

An income tax cut should imply taxes were due and then reduced. Otherwise, it's a redistribution of wealth. Joe the Plumber understands that.

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Curiously Waiting

I'm like everyone else waiting to hear the details of President Obama's economic plan. I think I heard it will include tax cuts. Does that sound like a campaign promise of his?

I will be interested in all the private sector jobs he has promised. How will he pull that off? Unless his plan includes reductions in corporate taxes and more generous depreciation allowances on new purchases, this sounds like a magic act.

I don't believe there is one or even two or three silver bullets to lift us out of the recession or depression we are living in. I imagine our climb back will take a minimum of 4 years even if the brakes are put on this month.

Meanwhile, save as much as you can, cut what you can from your budget, and hang on tight to your job. More than ever an emergency fund large enough to cover 6 months of regular expenses is critical. Plus, a layoff can include the need to pick up Cobra health insurance. Possibly the cost of the offered plan can be made available through your HR department.

Americans have always worked. Our consumer mentality has demanded it. Now is the time to drop some of that consumer mentality and develop a frugal approach understanding the difference between wants and needs.

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Entertainment

On Christmas Day, Bob and I enjoyed a quiet morning and took in a movie in the early afternoon. We saw Gran Torino and it was a good choice. The theater was packed.

We don't often take in movies on the big screen. I will catch a chick flick with Marney or a friend at the discount theater but we spend most of our entertainment budget on cable tv and eating out.

It cost us $17 to see Clint Eastwood's new film which would be just as enjoyable on the small screen. We do not eat snacks or even sodas at the theater because they are expensive but we observed many people do or sneak in candy bars and the like.

In our budget I account for vacations in a separate category. I think we all need time away from work and obligations from time to time so that we can better do what needs done. R&R away from home equals vacation. Entertainment is generally while we are at home.

When you are looking for ways to cut costs, entertainment is one category that is optional for living while vacation can be vital to health. Within the vacation expenses, there are ways to trim back. Consider the cost of getting to your destination and where you will stay.

For a few years when Marney was in grade school, we would drive to Florida and stay with my sister and her family for most of the nights. Visiting family was important and it left us with spending $ to take in Disney and other special treats.

We would stay in Orlando but off the beaten path. Once on the far side of the city and once at a discount motel that was newly opened about 15 miles from the big park. Good beds and no frills. Wonderful memories.

For years we would rent a lake cottage. Fishing is still our number one pleasure pastime. We would eat out rarely on these trips but had the extra costs of boat rental, fishing licenses and bait.

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Inflation

I heard one of my favorite financial talking heads on the radio yesterday. A caller was concerned about low interest rates are on his bank CDs and wondered where he could safety earn higher interest.

The answer was not encouraging. Interest rates on safe $ will remain quite low for now and possibly for years. The caller could buy Treasuries but they yield virtually the same.

The talking head went on about inflation. He foresees zero inflation for the next few years with the exception of fuel which should stay relatively low except during peak demand times this summer.

He said that deflation is the worry for now. Deflation is defined as "a contraction in the volume of available money or credit that results in a decline of the general price level."

Things will cost less but as a whole the economy will be in a decline. Our hope is that our new president will lower tax rates and stop the bleeding. The large bailout $ comes not from the vaults but from the printing press.

My concern is our $ will be worth less and less. It would be a worry if our $ can buy less and the prices have eroded. Things could come to a screeching halt.

With all the talk of stimulus, let's remember that most government handouts do not stimulate growth. They may help ease some financial pains and feed families for a season but they will not produce growth in our economy.

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Vista O/S

We dropped off our Sony laptop yesterday. We bought it in October 2007 and in September it quit receiving wireless internet connections. We purchased the 3 year warranty for this very reason. This computer was to be our main traveling machine and we knew the coverage could be important.

From the very beginning however the Vista operating system caused real problems. Bob's technical work requires such old programs as Lotus Notes which we finally found a way to adapt. But there was one specific program that would not work on Vista and the client saw no reason to change so we purchased a small Dell in June with XP.

One of our biggest difficulties with the Sony was that just one of our printers had a "patch" available from HP. Bob could no longer print his reports on his nearly new laser jet printer. HP has dropped the ball of this one. One of their most popular models and Vista users can not use it.

Before we decided to spend more $ on a new printer, the Sony came up with this latest problem. The Geek Squad said it would take 2 weeks to diagnose and probably mail to California for "them" to replace the wireless card.

Our bet is it will take a month. We just hope Best Buy does not file for bankruptcy before we get the machine back.

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Homemade Gifts

Our daughter gives small containers of a "mix" to friends for Christmas. It's a combination of cashews, Christmas M&Ms, peanut butter chips, and raisins. The salty and the sweet concoction is popular.

We enjoyed our tin of the goodies while watching football game after football game this week.

When I was enjoying my "Christmas gift" day with my best friend on Tuesday, we hit the lottery at a Dollar Tree store. The sign said 50% off Christmas items.

Let's see. The math is 1/2 off $1. That's right 50 cents each! My friend loaded up on small baskets that are just the right size for the goodies she gives and I picked up a dozen tins and jars for Marney in different sizes.

Small investments toward next year's gift costs.

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Fresh Start

A new year. Remember those first days of class in a new grade. New pencils. Pristine crayons. A different voice giving instructions. Hallways that were polished like glass.

Here we are at the beginning of 2009. I do not make resolutions. I do not run. I fail at all diets but today I can set up new files for the year. I put a fresh register in the checkbook as the old one is needed as a reference. It is already in my gathering folder. I have two large plastic folders near the phone in the kitchen.

Into the red go credit card receipts waiting for reconciliation with the next statement. Into the green we collect tax relevant things like the receipt from Goodwill we got the other day and our 2008 checkbook register.

Being organized financially can be a resolution but I would call it a good habit. I would suggest you join me in tracking expenses. Knowing where the $ disappears to will help us decide where to cut costs.

Carry a small notebook in your purse or in the glove box. Mark by date the amount of cash spent and what it went for. That's the only way to track all those cash-outs from your wallet if you do not get a receipt.

If you get a receipt for that loaf of bread, stick it in your pocket. Set up an envelope or file and collect all this information for a month. After January is over, recap the receipts and notebook notations.

Why would this exercise be helpful? To establish a budget and to control spending, you need a true picture of outflows beyond the checkbook. Do it for one month and you will better understand the answer to that question we all ask ourselves when our W2 comes in the mail by the end of January. Where did it all go?

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