Here are some of the celebrities listed by Free Money Finance:

1. Michael Jackson
2. Mike Tyson
3. Nicolas Cage
4. Kim Basinger
5. Gary Coleman
6. Corey Haim

And, of course, I can think of a few more off the top of my head, including Elton John, Britney Spears and Lawrence Taylor. These starts have all had money problems. And Kevin Bacon has fallen on tough times, since he had put his trust in Bernie Maddoff.

So, even if you don’t spend more than you earn, it is still important to be careful of who you trust, and try to avoid giving any one person too much control over your financial future. But, in the end, true wealth is built little by little, with prudent decisions, and by living within your means, rather than spending everything — and then some — on a lavish lifestyle.

Image source: Missbritttney via Wikimedia Commons

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Learn from Celebrities: Live in Your Means

You probably already know that you can write a check and deduct that (as long as you have a receipt to back it up in case of audit). But there are a couple of other charitable donation options that can net you a tax advantage:

1. Investments: You can donate investments that have gained. If you donate an investment that has gained value over the years, you can avoid capital gains on the increase, and you can take a tax deduction for the entire value of the investment. If you want to donate a losing stock, though, you are better off cashing it out, taking the loss (which can be tax advantaged) and then taking the deduction for a cash donation.
2. Stuff: You can get a tax advantage for donating stuff in good condition. Just make sure that the items are usable, and make sure that you get a receipt from the eligible charity to which you donated the items.

There are plenty of opportunities to give to others this time of year, and if you plan it right, you can receive a financial advantage in addition to the emotional and intangible advantages associated with giving.

Image source: Wikipedia Commons

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Give…And Get a Tax Deduction

Anyway, here is a great break from holiday stress. It’s a fun rendition of “Carol of the Bells” from the Muppets:

Hope you are enjoying the holiday season, and finding ways to alleviate some of the financial stress that can come with this time of year. The most important thing to remember is to try to avoid getting further into debt. Instead of focusing on things, think about the great, free things in life: Family, friends and sharing time together.

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“Carol of the Bells” – Muppet Style

This move has steadily gained in popularity amongst retailers and consumers alike, and the day is expected to provide a needed boost to holiday shopping that slows down considerably after December 10th. Retailers like the extra shot in the arm as the holiday shopping season winds down, and shoppers appreciate the fact that free shipping can save them a great deal of money. Shipping costs start to add up after awhile.

So mark your calendars, and visit FreeShipping.org. Find out who will be participating, and plan your Christmas shopping around saving a little extra money when it comes time to order your gifts. Because when you are doing Christmas when money is tight, every little bit helps.

Image source: Daylife

Post from: EveryJoe

Get Ready for Free Shipping Day on Dec. 17

As credit card companies continue to tighten their lending standards on card users, some are using purchasing data — gleaned from millions of card transactions processed daily — to weed out who may or may not be good credit risks.

Have you used your credit card at merchants specializing in secondhand clothing, retread tires, bail bond services, massages, casino gambling or betting? Your credit card issuer may be taking note — and making decisions about your creditworthiness based on your purchasing behavior. The reason: Buying used clothing or retread tires may be an indication of financial distress and a preamble to missed credit card payments or defaults.

Now, you may not be a credit risk, but instead may be a frugal shopper. But that won’t matter to issuers. Other things that credit card issuers might take note of include increases in spending, and even activity on other cards and other loans.

The positive side of this is that credit card issuers can use the information to monitor your account for suspicious activity and notify you if something looks suspicious. Unfortunately, that’s where a lot of the benefit to you stops. For the most part, card companies just want to be able to make sure you aren’t a big credit risk.

Obviously, the only way to avoid such scrutiny is to use cash, which can’t be tracked in the same way. In the end, if you choose the convenience of plastic, you are giving up some privacy.

Image source: Daylife

Post from: EveryJoe

Credit Card Issuers are Watching You

In order to help students better find student loan lenders, Cology has joined forces with Overture to create an easy-to-use platform for student loan funding. I recently spoke with Brian Cox, an executive with Cology, about the process.

“The whole process is different,” Cox told me. “Overture’s platform features the lender’s credit criteria built in, so your results include confirmed interest rates and fees. This is different from many other searches, many of which just return the best rate offered, whether or not you qualify for it.”

He also pointed out that the platform would be able to help potential students make more informed decisions about the loans available to them. “It’s kind of like Lending Tree, offering you multiple offers on your student loan options.”

Once students select a student loan option, Cology’s loan processing takes over. “We take care of everything,” Cox explained. “We are compliant with usages and disclosures, and we have relationships with a number of schools, so we know what is needed for a number of possible universities and colleges. So we make sure you get the money through your university.”

Cox said that for now the platform is designed mainly for traditional lenders who want to offer student loans. However, he hopes to expand the platform in the future to include person to person lending and foundation loans at 0% interest. “The next wave will include alternative student loan resources.”

Image source: Clawed via Wikimedia Commons

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Looking for Student Loans with Cology

“Even though we have reduced the deluge of job losses to a relative trickle, we are not yet creating jobs at a pace to help all those families who have been swept up in the flood,” Obama said. “And it speaks to an urgent need to accelerate job growth in the short term while laying a new foundation for lasting economic growth.”

It is true that the jobs situation is stabilizing. Last month saw a rather dramatic drop in unemployment claims. Obama hopes to do more than just stabilize the situation, however; he is interested in stimulating job growth. In order to do this, he is hoping to do the following (presumably ideas approved at last week’s jobs summit):

• Provide small business tax breaks for new hires.
• Provide small business tax breaks for equipment purchases.
• Spend $50 billion on infrastructure.

I am especially excited about the infrastructure spending, since that will provide some jobs, while at the same time updating our woefully inadequate infrastructure.

Image source: Ari Levinson via Wikimedia Commons

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Bailout for Main Street with Job Creation

I read about this neat little trick over at Good Financial Cents. Basically, a nondeductible IRA is a traditional IRA that high wage earners use because they are phased out income-wise for the tax deduction on contributions to an IRA. They don’t get the tax deduction. However, if you plan to convert to a Roth IRA, the nondeductible IRA is a great tool — you might consider whether it would be wise to open one now and put in what you can, with the intention of converting.

You will have to pay taxes on your gains in the nondeductible IRA, but if you are just looking at the last part of 2009, you should be pretty well protected from tax liability (unless you get extremely lucky). At any rate, it’s an interesting strategy for those looking for another backdoor into the Roth IRA. Just make sure you do your research and maybe consult with a professional before taking the plunge.

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IRA Conversion Strategy: Nondeductible IRA

But how can you accumulate real wealth? Well, the answer lies in the #1 rule of personal finance: Spend less than you earn. Living within your means is the first step to being rich. Rather than focusing on whether or not you look wealthy, focus on living within your means so that you are comfortably able to grow your wealth. This will ultimately help you improve your situation and see a higher net worth.

Indeed, Thomas J. Stanley, author to The Millionaire Next Door and Stop Acting Rich…and Start Living like a Real Millionaire, points out in an interview with Bankrate (and featured on Yahoo! Finance) that most millionaires in this country are not the glitzy, free-spending celebrities that we see. Instead, they are regular people with the discipline to live within their means.

That’s something to think about. Most millionaire households live in homes valued at less than $300,000, according to Stanley. So while you are trying to look as though you have a great deal of cash, the guy next door may actually be a millionaire.

Image source: prawnpie via Flickr

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Want Real Wealth? Stop Acting Rich!

The good news, though, is that if you give thoughtful gifts, they don’t have to cost very much. Indeed, you can give inexpensive gifts, as long as you manage to make them more personal. This has its own set of challenges. However, an inexpensive gift that shows your thoughtfulness will be more appreciated than a pricier gift that is impersonal and poorly thought out.

Just remember: For most of your loved ones, it really is thought that counts. So make sure you give it your best, and any gift you give will be a success.

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Video: Peyton Manning Gives Bad Gifts