Archive for November, 2009

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Home Buyer Tax Credit-Not Just for Home Buying Virgins Anymore

Saturday, November 14th, 2009

 

How to Save Thousands on Your New Home Purchase

The First Time Home Buyers tax credit law was just recently extended through May 1, 2010.  The part of the new law that has been under-reported is that the new law extends tax credit to those who are veterans of home buying.

Millionaire Nurse wannabe’s need to meet additional criteria, before buying a home.  I will give my home buying suggestions in another post.  Be on the look-out.

The first time home buyer tax credits basically remain the same as the one that was supposed to have expired November 30, 2009.  It provides first time home buyers with an eight thousand dollar tax credit on the purchase of a qualifying home.  The rules for repeat buyers are a little different-so read on to get the details.

Here is a quick review of the pertinent points of the Home Buyer Tax Credit for the first time home buyer:

  • Up to 10% tax credit on the purchase price of a new home-maxing out at $8,000.00
  • Must not have owned a home for at least the three years before the qualifying purchase.
  • If a couple, both individuals must meet above criteria.
  • They must live in the new home for three years as their principal residence.
  • You cannot purchase the home from a parent, grandparent or your children.
  • If your tax credit is above your tax liability, you may receive a refund check for the balance. (If you qualify for 8,000 dollar credit and your tax bill is 4,000, you may receive a refund in cash for the balance.
  • Home purchase price is capped at $800,000.

The pertinent points for repeat home buyers:

  • Must have been living in one residence for five of the last eight years.
  • The tax credit is up to 10% of the purchase price, but is capped at $6,500 for repeat buyers.
  • Married couples modified income limit begins to phase out at $225,000 and is capped at $245,000.
  • No retroactivity- Must purchase between November 6, 2009 and close before July 1, 2010 with a contract in hand before May 1, 2010.

To qualify for both first and repeat buyers credits you must provide proof of purchase-usually a HUD-1 form with your tax return. Your new home does not have to be a detached single family home, but you do have to live there as your principal dwelling-and proof of occupancy may be required if you get audited.

So for those of you who thought the gravy train of a large tax credit was over, this gives you new life to find that qualifying new home-go forth and do your part for the real estate community and buy a new home-but only buy what you can afford.  That tax credit will be of no benefit to you in a year or two if you are struggling to make your payment.  The F-word (foreclosure) is no fun, and that new home can become a burden instead of your new castle.

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Debt: How Much Does Yours Cost

Friday, November 13th, 2009

Matt at the Five Cent Nickle has a great post today on determining how much your debt is costing you in real money this year.

The idea here is to add up your interest costs on your credit cards, your mortgage, your car payment, and any other loans you may have.  You will need a little time, a calculator, and your statements or bills.  If your statement doesn’t separate your interest from principle, then you may have to call the holder of that debt to get the information.

When you add up the numbers and see the amount of interest you are paying during a year, it can open up your eyes to the true cost of debt.

I had a patient this week, a long time smoker, who decided she was ready to quit.  Why, after thirty plus years ,did she make up her mind this week?  She had in a sense “looked at her debt”.  In this case, she was watching her older sister, on a ventilator from COPD, (a chronic lung condition common in smokers for you non-nurses) suffering and unable to breathe on her own.  In her case it allowed her to look into her own  future- so to speak.  She was seeing herself, 10 years down the road, if she didn’t quit the cigarettes.

So, after years of encouraging her to stop smoking-she finally was ready to talk about it.

So let this weekend be the time you find out what you are spending on your debt-how much the interest on your debt is costing you-and vow to make changes in how you manage your finances.

If you think you don’t know how, go to www.themillionairenurse.com, sign up for my free ebook, “Emergency Money Resucitation”.  An additional freebie will be an emailed mini-course on managing your finances.

Let me know here how much interest is costing you on your debt this year, and did it open your eyes on why you need to eliminate it as fast as possible.

And again, please send our blog link to your friends and family, who you think may benefit from our advice or who you think may just enjoy our writing….

 

PS If you want an email reminder of a new post-sign in in the box on the bottom right of the blog.

Have a great weekend.

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Posted in debt reduction, personal finance | 1 Comment »

Plastic Surgery-What do Millionaire Nurses Do?

Thursday, November 12th, 2009

I saw a reference today that the number of  a particular plastic surgery procedure, called a Labioplasty was increasing in England.  The procedure there costs about the equivalent of 4500 bucks-it would probably be twice that in the US.

This is not a medical blog, and I am not going to spend any time on the controversy of the procedure itself.  I have performed the procedure in my practice for a few women who have met insurance company criteria for the surgery.

I want to discuss the pro’s and con’s of plastic surgery when it comes to your personal finances.

Obviously plastic surgery is by definition elective.  It is a procedure that will not cure a disease or make your feel better physically.

The psychology folks would argue that when certain physical traits are present, or absent for that matter, your mental health is affected, so the surgery could be medically indicated from that standpoint-but again it is not the purpose of this post to deal with those issues.

Do you spend the money on plastic surgery when you have debt, no emergency fund,  and are not funding your retirement?

Most of you already know my answer, “Of course not!”  Plastic surgery that is elective should only be done when you have your finances in perfect order.  Don’t go into credit card debt or other wise borrow money for this.

Once you have your finances in order, if you want to put aside money for plastic surgery, then go for it.  I think two surgical opinions are in order, and extensive research into the positives and negatives are still in order.  But, make sure you check on the total costs involved including pathology, anesthesiology, and sometimes radiology, so you don’t get a surprise bill 6 months after surgery.  Have the cash ready and pay in full.

I hear almost every week in my practice, women who say they wish they hadn’t had that plastic procedure, that they thought they HAD to have.  So make sure you think this over very carefully.

So what are your thoughts about the financial aspects of plastic surgery-let me know.

If you have any comments or questions-hit the comment button.  Also we have added an email button on the bottom right-if you want to be notified of new posts, sign up.

And if your pocketbook needs plastic surgery-sign up for my free Ebook, “Emergency Money Resucitation” available at www.themillionairenurse.com.

Please let your friends and co-workers know about this blog, so we can broaden our conversations about money and personal financial questions.

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The Millionaire Nurse Blog Salutes our Veterans

Wednesday, November 11th, 2009

I want to take the opportunity today to give honor to the veterans of our military.  The freedoms that we enjoy, that we all take for granted, were hard-won by the men and women who have served and are serving in our military.

Please take a few minutes today to give a word of thanks to those who have sacrificed so that we have so many choices in our country.  I have been fortunate to travel outside our country, and it only takes a trip to some of the slums of Nicaragua, or Venezuela, and to see the role the military takes in other countries to stifle freedom and outlaw dissent, to be able to appreciate our country.

We have freedoms in this country to travel freely, to meet, to have a tea party, and to have a meaningful say in how our government is run-and we should never take those freedoms lightly.

My goal in writing the “The Millionaire Nurse”, and in sharing thoughts and ideas in this blog is to help nurses and others to obtain financial freedom.  Financial freedom would be a waste, however,if we didn’t have all the other personal freedoms that we unfortunately frequently take for granted.

So, thanks to all of you who have served in our armed forces, and thanks to the families who have lost loved ones with the ultimate in sacrifice for us and our country, and thanks to those families who are currently missing one of their own, while they are serving in far away places around the globe.

May God Bless!

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Black Friday-Will You Blow Your Spending Plan in a Moment of Frenzy

Tuesday, November 10th, 2009

Black Friday-the day the retailers look forward to all year long.  The Friday after Thanksgiving gives all the retailers a chance to celebrate or suffer, as it frequently sets the tone for the holiday’s profits or losses.  Last year saw a drop in holiday spending as the recession took hold, the first drop in years.  What does this holiday season of spending look like?

Those of us on the other end of the  professional marketers spear, who have to do our best to avoid over-spending during this day are in the crosshairs.  We will be bombarded by advertisements, and recommendations for who has the best prices.

Unfortunately this sort of hype works.  Who can forget the video shots of those riots a couple of years ago, where someone was killed by a horde of shoppers.

So how do we prevent  over-spending, while still enjoying the traditions of shopping on Black Friday?

  1. Make sure you have a spending limit and stick to it.  Maybe carry your money in cash (safely of course), leave credit cards at home-similar to what some gamblers do to keep from over gambling.  You can only spend what you take.
  2. Make sure you have a list with prices of your planned purchases.  Part of the fun of this day, so I am told, is the excitement of finding something you were going to buy, at a better price than you had planned to spend!
  3. To find the best prices, and decide where to shop, do your due diligence.  Scan the shopping ads, and do your online research.  See this earlier post where I reviewed several coupon sites on the web.  See this question at Cash Commons, a great new site for personal finance questions on this subject.
  4. Frequently the best buys are early in the morning-you can’t be everywhere at once-so pick your battles-based on the amount of savings of items you have on your must-buy list.
  5. Enjoy the company of friends and family, make the day an adventure, and don’t feel left out or depressed if you are not sliding that credit card through the slot every few minutes.

So let us hear from you folks out there, share with us your shopping stories.  Confess your sins if you spent too much-confession is good for the soul.  Also let us know if you hear about a specific bargain that you would think others would like to know about.

And remember, if you need “Emergency Money Resucitation” go to my website at www.themillionairenurse.com and for your free e-book, maybe it will help you get your mind on saving money here close to the holidays.

And remember to let your friends and co-workers know about this blog, so we can get the word out to potential “Millionaire Nurses” everywhere.

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Posted in Planned spending aka budget, Uncategorized, personal finance | 2 Comments »

Saving Money-Today!

Monday, November 9th, 2009

The most common comment, when I suggest starting on the path to financial freedom is “Save Money, I can barely pay my bills, how can I save any money!”

I then ask the following questions:

  • Do you have a financial plan or goal for where you want to be next year or 5 years from now in regards to your savings, debt and overall finances?
  • Do you  know your net worth?
  • Do you plan your spending, and know where your hard-earned money is going this month?
  • Do you know what your family is spending your money on?
  • Do you shop without a list or plan?
  • Are you using credit cards to “get you by”?

These are just a few of the questions that help to confirm the lack of planning your finances.  To be able to “Save Money” you must have a plan to “save money”.  It will never just happen by accident.

So check back with us over the next few weeks as we try to get back to basics of planning, and saving.

Your life will be much less stressful, which means you will be happier, as will those around you.

And remember, if you need “Emergency Money Resuscitation” check out my new e-book at www.themillionairenurse.com.  And please send your friends and co-workers to this blog and my home website so we can answer their questions about money.

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Saving Money Daily: It is a State of Mind!

Sunday, November 8th, 2009

Saving money, as a way of life, is the goal of Millionaire Nurses.  This does not mean constantly thinking about ways to take advantage of others.  This does not mean negotiating with the lemonade salesman (the cute 8 year old down the street) for a better price on your refreshing drink.

Saving money daily, just means being aware of your long and short-term goals, and when confronted with spending choices, take a minute and be sure the choice fits your plans.

Just to give you a few examples in my life today:  I had to go to the hospital to see a patient ready for discharge.  No emergency, just a routine visit.   I got on my bicycle, rode the three miles to the hospital-saving money on gas as well as getting my exercise for the day.

Another example-I needed (wanted) different music for my aerobic exercise.  I received a Sansa Mp3 player for Christmas last year-nothing fancy.  It had been awhile since I loaded anything different on it.  I looked on the net for free downloads of exercise music and found the site: Podrunner.  This site has free downloads, that contain a brief commercial message that allows you to choose between different speeds of aerobic exercise.  The downloads are free.  They also have a pay version, and newsletter that you can sign up for.

This download was perfect for me to use while exercising on the 20-year-old cross-country ski machine I have at home, or the elliptical trainer I use at the local YMCA.

These are just two examples of ways you can save money daily, while not feeling as if you are being a skin-flint.

Let me and others know how you save money on a daily basis.  And for a free e-book, filled with money-saving tips, go to my website, www.themillionairenurse.com and sign up.  We will send you a free e-book along with a mini-course on personal finance.

Also please send a link to our site to your fellow nurses and nursing students, so they can join our journey.

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Posted in Planned spending aka budget, Uncategorized, Wealth building | No Comments »

Nurses Losing Their Job-Are You Ready?

Friday, November 6th, 2009

One of the reasons that many people go into nursing is for job security.  The old saying goes, you can always find a job as a nurse.  This also used to be said about teachers, but this recession has seen lay-offs and furloughs for teachers.

Is your nursing job safe?

In your favor:

  • The population is aging.
  • Preventive care is getting greater prominence, meaning more nurses for evaluation and counseling will be needed.
  • The un-and under-insured are still with us, in spite of all the rhetoric out of Washington-meaning Emergency care is still a big issue.

Issues that are potential threat to nurse job security:

  • The health care bill(all proposed so far) will gradually decrease payments to hospitals and physicians-big nurse employers-these cuts will be felt everywhere.
  • Most hospitals are already under financial stress and strain from decreasing reimbursements and higher costs associated with safety measures, and new technology.

So what do you do to be prepared.  In general, hunker down.  Start increasing your savings, sell any big-ticket items you can reasonable get rid of-such as a car with a big payment-or other toys you can do without.  Cut the budget and get rid of anything that is not absolutely necessary-so that you can increase your savings.  Keep your eyes posted about other job opportunities that may be in a more financially stable area.

There is an article in the WSJ today-read it here- the article discusses some of the legal options regarding protecting your assets such as your  home against creditors.  If you have a definite imminent threat to your job, it may be worth reviewing these options with an attorney.

Of course, don’t make any decisions without careful thought and deliberation.  Most poor financial decisions were made on the fly, without thinking long-term.  The amount of job losses in the nursing profession are sure to be much less than in almost any other area-so don’t panic un-necessarily.

So let me know your questions, or comments.  Please forward this link to any friends that may be concerned about their job security.

And remember, the free e-book “Emergency Money Resuscitation” available at www.themillionairenurse.com.

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Taking Command of Your Finances

Thursday, November 5th, 2009

What will make you decide you want to take control of your personal finances?  What will motivate you to buy a book such as mine-“The Millionaire Nurse”?

  • Do you wait until you are bankrupt?
  • Do you wait until you realize your children are college age and you have no money to help pay their way?
  • Do you wait until you are ready to retire and realize you have no savings to retire on?
  • Do you wait until you realize your Social Security check is not a living wage?
  • Do you wait until the collection calls are driving you nuts?
  • Do you wait until your realize you have nothing in your checking account to pay for your child’s gifts during the holidays?
  • Do you wait until you lose your job and have no emergency savings account to live on until you find another?

I could go on, but you get the picture.

Amy, at Get Rich Slowly has a great post today about what it takes to make big changes in your life.

Let today be the last day that you have no plans for your personal finances.

Good luck and let me know your thoughts, questions, or comments about changing your financial destiny.

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Lottery Tickets-Path to the Millionaire Nurse?-Not!

Wednesday, November 4th, 2009

Lottery tickets-is this the path to being a Millionaire Nurse?  Is a lottery ticket a good way to get ahead.   I know people who buy every week, with the hopes of being able to get away from what they feel is a hopeless life, a job they hate-only if they could get lucky today then things will be better.

The vast majority of lottery winners go through their winnings within a few years and are back where they started.  Seth Godin, the world-famous marketer mentions lottery buying in this post.

What do Millionaire Nurses do when they feel the need to buy a lottery ticket.  It is a sign of frustration with their finances.  Go back to basics.  Look over your 5 year financial and personal goals.  If you don’t have these, then set aside a few hours and develop them with your partner if you have one.

Make sure you know where you are in your current financial world-net worth, planned spending, and retirement savings. 

And if you don’t know how to do these thing, sign up for my free e-book at www.themillionairenurse.com and let me know and I will reserve you a signed copy of my book, “The Millionaire Nurse”.

Then go give that buck or ten to a homeless person, put in into the Salvation Army kettles that are available now, or just add it to your savings. 

You will feel better.

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