Single Living on a Shoestring

Going through a breakup or looking to ditch the roommates for your very own place?  Living alone is an exciting adventure, but it certainly is not the most wallet friendly living situation.  However, even in these trying economic times, more singles are opting to live by themselves than ever before…

According to Eric Klinenberg’s book, Going Solo: The Extraordinary Rise and Surprising Appeal of Living Alone, only 22 percent of adults were single in 1950, and only 9 percent of those single lived alone.  But today… almost half of the country’s adults are single, and one in seven households are occupied by solo dwellers!  So if you want your independence, how do you prepare financially to be live solo in the city?

The 25% Rule

Most experts say that your monthly rent or mortgage should never exceed twenty-five percent of your monthly paycheck.  If you are savvy enough find an apartment that meets this criteria, and budget your other expenses well, you should be able to live quite comfortably while having the funds to steadily increase your savings account too.  Clearly the 25% rule is tougher to stick to in a major city like New York or LA!

The Singles’ Penalty

You don’t need to be a rocket scientist to know that your household expenses will increase when you move out on your own.  When you’re planning out your monthly budget, remember to consider all the bills that you are used to splitting – or not paying at all.  Many of these expenses are optional, so tally it all up and cut the amenities you can live without.  And if you’re renting… Try to get your landlord to include utilities like: gas, electric, water, and cable!

• Electricity (don’t forget the big AC bump in the summer)
• Gas
• Water
• Cable
• Phone & Internet
• Renter’s or Home Owner’s Insurance
• Condo, Co-op or Association Fees
• Property Tax & City Fees
• Repairs
• Groceries -(The price per person is higher when your just buying for one).
• Housekeeper

by Alexandra Pauline – April 18, 2012

1040x to the Rescue!

Phew!  Tax season is officially over…or is it?  If you’ve just realized you made a mistake on your taxes, you’re not alone.  One of the most common errors?  Forgetting to sign the form!  If it turns out that you have to revise what you filed, you’re in luck: Fab & Fru has teamed up with tax guru Nick Rizzi – the CEO of Smart Tax – to find out what mistakes are most common, and how a handy little form called the 1040x can help fix them!

Forgetting Deductions

A common tax mistake people make is forgetting to account for certain deductions.  The great thing about deductions is that they reduce your tax liability – which leaves you with more money in YOUR pocket.  So, if you’ve forgotten to account for a charitable donation you made or a hefty medical expense that is eligible – no need to worry.  All you have to do is fill out a 1040x and you can amend any return from the past three years – and make a case to get your money back!

Cash in on Your Credits

Too often people forget about the tax credits owed to them when they make big purchases.  According to Rizzi, “The IRS says Americans have overpaid almost a billion dollars in taxes due to missed deductions and credits.”  For example, if you bought a house for the first time in the last three years and didn’t know you were entitled to a first time home buyers credit of up to $8000, you can also get your money back by filing for it on your 1040x.

Double Trouble

If you have multiple jobs and forgot to submit the info for one, you can also use the 1040x and add it to your income as soon as you realize the error.   The longer you wait,  more interest will accrue on what you owe the IRS.  Don’t wait for the IRS to call you – fix your mistake ASAP!

If You Get Audited…

The IRS is looking for mistakes.  So if you’re claiming to have donated $50,000 to charity when you only make $60,000 a year, you better have record of your trust fund on hand!  You will save yourself a lot of hassle and heartache if you have all your documents in order.  Remember – the proof is in the paperwork!

Many thanks to Nick Rizzi for making this season a little less taxing for all of us! 

by Debbie DiVito, CPA, Women & Co.

3 Things to Know Before the Deadline

Calling  all you procrastinators!  If you’re freaking out about needing to file a tax extension – take a deep breath.  Our fabulous friends at Women & Co. have 3 easy steps to help you file your tax extension… ON TIME.

If you’re looking for extra time to file your tax return, you may be able to get an additional six months by filing for an extension. But keep in mind that, while a tax extension may be just the quick fix you need, it won’t solve all of your problems.  Do you need to buy some extra time to file?  Here’s what you need to know about filing an extension:

1. You must file a tax extension on or before the regular tax deadline.

Normally, tax returns and extensions are due on April 15 (remember that in 2012 we have an extra two days).   An “extension” is a way to ask the IRS for more time to file your tax return.  Usually, filing for an automatic extension will extend your filing deadline by six months (making your return due on October 15 in 2012).

2. The money you owe is still due on the regular tax deadline.

In other words, you’ll need to estimate the amount of taxes you owe and make a payment at the same time you file for an extension.  That means paying at least 90% of the taxes you owe, otherwise you risk facing a late payment penalty.  You can learn more about the price of late payment on the IRS Website or in H&R Block Tax Tip 30: Federal Income Tax Extension Information.

3. There are exceptions to the rule.

There are special considerations for U.S. citizens and resident aliens who are out of the country on the tax deadline (again, that’s April 17 in 2012).  That means that, if you meet the requirements, you may be eligible for an extra two months to file your return and pay what you owe.  You can read more about these special rules on the IRS website or in H&R Block Tax Tip 30: Federal Income Tax Extension Information.

You can learn more about extensions of time to file your taxes on the IRS website.  If you have additional questions about filing a tax extension, speak with your tax professional or accountant to learn more.

by Stephanie Berenbaum – March 21, 2012

Cops, Robbers & Homeowners Insurance

Yesterday was an ordinary day, until I found myself at the center of an international crime thriller!  Okay, well, not exactly … but I DID have two car seats stolen from my very own driveway.  Here’s what happened: our babysitter set our car seats down next to my car – in my driveway – and then came back inside for maybe 60 seconds because I had forgotten to give something to her.  She went back out and – that’s right – the seats were GONE.

Get to Know Your Local Police Precinct

Or at least have their phone number handy!  Not only did I not even know what police precinct I was in, I didn’t even have their number.  By the time I managed to look them up and call, many minutes had gone by.  I know the odds of catching the car seat thief was slim, but I realized that my precinct should definitely be on my go-to list of important phone numbers!

Insurance to the Rescue?

This theft – the first since we moved into our house 8 years ago – actually was a wake up call for me.  Because, to be honest, I realized how little I knew about our very own insurance policy.  I always just took my homeowners policy for granted, and was a little embarrassed that I actually had no idea if something stolen from my driveway was even covered…

I called our insurance agency (Travelers) and told my agent (Michelle) what happened.  Here’s the 411 on what I learned about the ins and outs of insurance and theft!

Does The Driveway Count?

Talking to agent Michelle, my first question was if my insurance policy covered things only inside the house, or outside too.  I honestly didn’t know, but she assured me that property in my driveway was covered under my plan.  She broke it down further to explain that I had two kinds of coverage: a certain amount for personal property (like my car seats) and another amount for dwelling coverage (like if someone breaks down your front door).

Coverage On The Go

My new BFF Michelle also explained to me something I had no idea about: if I am traveling and my luggage (or car seats!) gets stolen, it is also covered under my “personal property” homeowners insurance – even if the theft happens away from home.  *Note: Most renter’s insurance policies are the same.

Make a Video Diary

One thing Michelle highly recommended to speed up any insurance claim: make a video diary of your high ticket items!  Of course it helps to also keep all of your receipts.  But if you haven’t done that, just take 5 minutes and shoot video of your pricey jewelry, TV, computers, clothing and, oh, I don’t know, maybe CAR SEATS?!  That way when the insurance adjuster comes out you can prove to him that, yes, the $250 pair of jeans really was yours (no judging, we swear…).

by Brandi Savitt – March 15, 2012

Inheriting Money 101

I’m so enjoying catching up on episodes of my new – not so guilty – TV pleasure, Downton Abbey!  Watching this British based period drama, I can’t seem to shake the thought of the arcane, sexist inheritance laws that haunt the Crawley family.  –Don’t worry, I won’t spoil the show…

Historically Speaking

For those of you not familiar with Downton Abbey, the series begins in England during the years leading up to World War I.  The show touches on so many money related issues, it’s mind boggling, but the family’s main money conflict is two fold…

The Earl of Grantham (and head of the family estate), Robert Crawley, is married to Cora, an American heiress.  To ensure that Cora would not divorce Robert and take her money with her, Robert’s father made a deed of transference that locked Cora’s money into the family’s estate.  At the time, no one involved worried about the possible consequences.  The couple was expected to produce a male heir who would inherit Robert’s title and therefore keep all of the family’s wealth intact.  The problem…  Robert and Cora had three girls, and in England, girls could not inherit their father’s title or estate.  Now, in order for the family to keep their money, Mary, the eldest daughter, must marry the next inline to inherit Robert’s title: her cousin…  Bummer (or maybe not)?

While we thankfully don’t have the same disadvantages today as the Crawley women, there are a few things you should know if you find yourself named as a beneficiary in someone’s last will and testament…

Taxes not Title

Inheriting money in modern America has nothing legally to do with titles, birth order or sex. It’s state and federal TAXES that become the most complicated issue.  Passing assets to a loved one can be extremely expensive if not properly planned for.  According to attorney Tom Hession of New York’s Hession, Bekoff, & LoPiccolo, “if you own anything of significant value, consulting with an estate planning expert to avoid unnecessary taxes can be worth the price in gold.”  –Keep in mind, while every state has slightly different capital gains and tax laws, the federal government has extended that there is NO Estate Tax due on inherited money through the end of 2012 (of course this is subject to change next year).

What Does This All Mean If You Inherit Something?

If you inherit money or property, the burden to pay the transfer tax is not on you, but rather the estate of the person who has passed away.  If you inherit anything of any amount this year, there will be no transfer tax due to the IRS – therefore giving you more money in your pocket.  Regardless of when you inherit money or property, a flush, well planned estate will have the means to pay any taxes and debts before passing assets to its beneficiary.

Save on Your Next Vacation or Staycation

Did I mention that I am turning the big 4-0 in just a few short weeks? And while I could be anguishing over laugh lines, I’m way more focused on how I am going to celebrate!  As much as I love spending time with my 4 & 6 year old boys, mama needs a B-Day getaway - sans children…

Fab & Fru Money Saving Discoveries!

One of the best things about turning 40 is that I stumbled upon a couple of money saving websites & apps to help me book my B-Day adventure.  I am deciding between going away or just having a MAJOR spa day right here in Los Angeles.  And lucky for me, both Yapta.com and Lifebooker.com have made my decision making process a whole lot easier – and cheaper!

Yapta

I can’t believe I waited until now to use Yapta - which stands for ”Your Amazing Personal Travel Assistant”.   Powered by Kayak.com, Yapta tracks the prices of flights before and after you book your trip. One of the most Fab & Fru features?  If the price of your airline ticket decreases, Yapta lets you know when you’re eligible for a voucher or refund!

To be honest, I didn’t even know airlines offered refunds for price drops.  But according to Yapta, Alaska and Jet Blue will refund for any price drop, Virgin America if it drops $75 or more, Hawaiian if it drops $100 or more, and Delta, American, USAir and United for drops of $150 or more!

Lifebooker

There is nothing I like more than spa treatments – (except maybe spa treatments in Paris).  So,  I am also considering celebrating my big day with a tres indulgent staycation: a day of beauty treatments.  But here in LA, a day of pampering can basically cost as much as a trip to Paris – which is why I am so excited about Lifebooker!

Lifebooker is the pampering portal when it comes to spa deals and beautification in your home city.  They scout out the top locations and hook you up with the best spas and practitioners in your area of interest.  Whether it be microdermabrasion, massages or manicures – Lifebooker offers deals for up to 80% the standard prices! Even more beautiful… It’s 100% FREE to sign up.  Not only that, but you can also gain $1 in reward dollars just by rating the places you’ve been, and $10 for recommending the site to your friends.

Fabulous, Frugal, & 40

Saving big bucks while still spoiling myself silly?  40 is sounding better by the minute. Now all I have to do is convince my husband to take me to Paris for the weekend to say Bon Voyage to my thirties.  Check out these sites, and let them help you splurge without waking up the next day with a financial hangover!

What are your favorite money saving travel & spa sites?

by Stephanie Berenbaum – March 11, 2012

Get Organized & Save!

We wrote about the money-saving SLICE app last year when it debuted – and the latest scoop is it just became available for all you Android users too!

What Is Slice?

As you may recall, Slice is a FREE, web based service and downloadable app that saves you time and money by organizing your online receipts.  It pulls all the info you need – shipping notifications, tracking numbers, return policies and customer service info – and organizes it all in one easy place.

Basically, it is a dream app for someone like me who shops a lot online but tends to be, shall we say….chronically disorganized. I tend to forget “return by” dates and misplace online receipts – all of which equals money flying out of my pocket.  Here’s what makes Slice so Fab & Fru:

Hassle Free Returns

This is the biggie for me, and I am guessing maybe for a lot of you too…  I have to admit,  there have been times that I have been forced to hold onto stuff I didn’t need just because I had lost the online receipt somewhere in my inbox.  But Slice keeps a copy of all your electronic receipts in one easy to access place. In addition, Slice keeps all the info on the return rules and customer service info so you can simplify returns and save money – not to mention major headaches!

Price Adjustments Made Easy

Slice tracks your orders, and let’s you know when there has been a price drop so you can recoup the difference!

It Remembers What You Ordered – Even When You Don’t

I can’t be the only one who orders online in the middle of the night to be “efficient” – and then the next day can’t recall what on earth I bought!  Slice tracks all your shipments in one place – including detailed info about the contents – not just where you ordered from.

Helps De-Clutter Your Inbox 

Slice consolidates your shopping history in one place too so you don’t have to waste time digging through emails or a million websites to get the info you need.  And we all know…time is money!

by Alexandra Pauline – March 5, 2012

Save on Your Next Shopping Spree

Starting to get spring shopping fever?  Well, we have some Fab & Fru tips to help wake you out of your shopping hibernation AND keep you on top of some of the most savvy deals year round!

Know When to Shop the Discount Rack

Knowing WHEN to shop is one of the easiest ways to save.  Most retail stores follow a set weekly schedule for when they move items to the sale rack – thus making the following day your PRIME TIME to shop.  Department stores are typically known for doing their markdowns on Tuesday nights before closing, which means Wednesday morning is the time to find the best selection on the latest deals.  Though this might be the first time you’re hearing about the markdown schedule, it’s really NO secret.  If you want to find out when to let your fashionista ferocity strike, all you have to do is ask the manager of your favorite store!

Get Smart About Sales Tax

With sales tax hovering close to 10% in cities like Chicago, Los Angels and Seattle, the price we end up paying at checkout is always more than expected.  And while we can’t avoid paying sales tax on every purchase we make, PLANNING AHEAD for a big shopping spree is a saving tip from the masters.

Many states offer a Free Tax Weekend once or twice a year when they suspend sales tax on clothes and other purchases under a certain price point.  Connecticut, for example, features a whole free tax week from August 21^st-27^th on clothes and shoes under $300.

Also keep in mind….. If you live near the border of a state or town with a more favorable sales tax than your city, take a road trip when it comes time to stock up.  For example, NYC dwellers, before your kids head back-to-school, head over to New Jersey where there is  ZERO sales taxes on clothes!  Click here for more information on state and city tax rates near you!

Follow Facebook & Twitter for Killer Deals

If you want to know about the latest online and in shop sales, follow your favorite stores via their social networking portals.  Many top brands now only offer insider deals, sales and giveaways to their Twitter followers and Facebook friends.  These tips are often NOT advertised anywhere else – so get with the times and SAVE!

by Alexandra Pauline – February 27, 2012

The Cost of Going Back to School

Investing your time and money in getting an advanced degree can be rewarding on many levels, but in the current economy is it worth the upfront costs and potential debt?  If you’re thinking about going back to school, we’ve got some Fab & Fru advice to help you decide if a grad degree is right for you …and your budget!

Do Your Homework

There are many reasons to go back to school, but before you commit funds and time, ask yourself a few pertinent questions: What is your dream job?  Is your chosen area of study an expertise that is in high demand?  Can you get a graduate degree, or will you need to continue on the PhD path in order to secure the position you really want?

Budget Before Hitting the Books

Once you’ve decided on your area of study, it is extremely important to assess your financial situation before applying to schools.  What can you afford?  Are you eligible for financial aid?  Does the program you’re applying for leave you time to work to cover your living expenses?  How much debt in student loans are you willing to accrue?  And most importantly, will your investment advance your career in the direction you want to go, and how long will it take before you see the financial payoff?  Figuring out how to finance your degree upfront is crucial to your long term success!

Employer Incentives for Education

If you work for a big company, make sure you do your research if you’re on the fast track to becoming an invaluable employee.  Many companies are willing to at least partially finance your education – if you plan on bringing your knowledge back to the organization.  Some employers may also offer an interest-free advance on your salary, with varying conditions, if they do not offer full or partial tuition reimbursement.  Check in with your boss and see if you can take advantage of this Fab & Fru way to get your degree!

Scholarships for Scholars

Still wondering how you’re going to pay to go back to school?  Did you know that grants and scholarships are not just available for undergraduates?!  In fact, there are government, company and private trust scholarships for just about every demographic you can think of.  If you are a single mother, a veteran, or a sorority sister, you may be eligible for some serious support.  Check out Fastweb.com, one of the leading sites on scholarships and financial aid info!

by Alexandra Pauline – February 6, 2012

The Art of Tax Deductions

If you’re a freelancer, or you own a small business, the idea of getting a tax refund is likely a foreign concept.  Unlike our W2 bound friends, the art of understanding tax deductions is even more crucial for 1099ers when figuring out what you really owe each quarter and at the end of the year.  Consult with your accountant and take advantage of these Fab & Fru career specific tax tips – so you don’t end up paying more than you actually owe!

Writing-Off Your Home Office

What constitutes a home office anyway?  It doesn’t matter if you’re a musician, writer, financial consultant or a florist, if you work from home, you may be eligible to write off  portion of your rent or mortgage if your work space fits the IRS’s criteria.   According to the IRS, the key is your home office must be used for the business ­ purposes ONLY, and if audited, you must be able to prove it.   Even if your work area is part of larger room in your house, that space must be sanctioned off in some designated way.  –You can deduct up to 33% of your rent, so consult with your tax professional when trying to figure out the appropriate deduction to take.

The Cost of Doing Business… At Home

In addition, Michael Carney of MWC Accounting states that: “If an entrepreneur or small business owner operates their business from their home, there are many expenses that they can deduct.  Office furniture, heat, air conditioning costs, electric bills, and related home repairs are just examples of potentially eligible deductions.”  Frugal freelance writer Robert Ellis-Smith even added, “When I first opened my business – publishing a newsletter – I deducted the cost of firewood because that is how I heated my separate home office!”

Let Your Money Take Center Stage

If you are an actor, comedian, dancer or musician, there are many unexpected deductions you can take as a working performer.  While working hard to try and make it big doesn’t come cheap, you are entitled to some substantial deductions that may make tax time a little easier.  Did you know that your union dues, head shots, costumes, gym membership, monologue books, sheet music, haircuts and reels may all be eligible to be written off within the year of purchase?