Despite some arguments that your home isn not an investment, to the average American a home has many characteristics of one. It tends to appreciate in value, there is an active market for buying and selling, and it can be relied upon for future cash flow (typically through renting or a reverse mortgage).
Got Kids? You Need to Know About These Income Tax Credits
Having children brings a whole host of concerns, especially for first-timers--like me. Is my child receiving enough emotional support? How do I know she’s eating enough? Is it okay for her to cry herself to sleep? What type of diapers should I use?
In addition, financial concerns quickly become a reality as well. The cost of another mouth to feed, future college expenses. Fortunately, our tax system is set up in such a way that incentivizes socially beneficial activities--like having kids.
To the taxpayer, this means something extra special--TAX CREDITS--which are very different and typically more financially advantageous than tax deductions.
What a Simplified Wardrobe Can Teach You About Saving
Some of you may know that I’m a big fan of the blog and podcast, The Art of Manliness. The content is robust, timely, and always helps me find small ways to become a better man.
I recently came across an Art of Manliness article that has had me thinking. It was about simplifying your wardrobe by focusing in on a few high quality clothing items rather than having dozens of low quality t-shirts or seven or eight pair of jeans.
I’ve tried really hard to embrace this idea. A couple years ago I bought myself a really nice navy blazer and had it tailored. It was kind of pricey for me, but I wanted something that would really last and look great.
The Financial Key to Growing My Family of IVF Babies
After a couple years of marriage, Kellie and I were beginning to suspect that we couldn’t have children naturally. This was a serious downer, but the path to growing our family through in-vitro fertilization (IVF) was lighted as we talked with friends and family who shared the same disheartening experience but later found success.
But there was another problem at work--it was financial. IVF costs a TON of money and health insurance didn’t cover much of it. We’re talking around $15,000 for the whole process, and that assumes it actually works for you the first time around. In our case, “retries” are another $2,700 each. (I’m in the wrong business.)
We were diligent savers with a sizeable emergency fund--perfect for something like this--but one IVF attempt would have bled our fund dry.
Our financial boon laid in a tool that I’ve praised on my blog before, but not enough young families are paying attention to it.
My Favorite Type of Tax Deduction That Most Families Don’t Think About
Yes, I know. Tax season is far, far past us (cue angelic chorus from above). Those tight deadlines and stacks of financial documents are all nicely tucked away in our mental or physical files--or completely forgotten and shredded.
So why discuss taxes in the Summer? Filing taxes each year is one thing, but doing a little tax planning for your family is not only essential, but it’s wise to do so well before year’s end.
In that light I’d like to discuss tax deductions, but with a perspective that’s crucial to understand which I don’t hear discussed very often. And while I’m not a tax professional, I feel that understanding the nature of deductions can make one of the most significant financial impacts on your tax situation each year.